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(ii) As an important international entrepot and linkage

point

and

transhipping goods to the mainland

re-exporting Chinese goods to the world market,

Hong Kong has assumed an even more outstanding

role. According to our data, in 1980 about 50% of

the goods exported from China to Hong Kong was

re-exported to overseas markets; the figure has

increased to 80% in 1990. It is clear that China

not only re-export her products through Hong Kong,

but also import goods from other places in the

world through Hong Kong. The latter accounts for

a very large proportion of import from Hong Kong,

usually at around 70%. The relatively rapid

development in Chinese imports and exports trade

via Hong Kong is an important reason for the rapid

expansion in trade between the two places in

has not only led to a rapid

recent years.

This

growth in Hong Kong entrepot trade, but has also

enhanced the

development of such related services

In fact,

as financial services and shipping.

entrepot trade has now become the only driving

force supporting Hong Kong's trade expansion.

(iii) The

integration of trade and cooperation in

production between China and Hong Kong have

deepened and tightened the economic ties between

the two places. Since the implementation of the

adoption of the open door policy and

reforms,

the

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