150
-
a
up outward
initiatives taken to attract foreign investment,
lot of Hong Kong manufacturers set
processing and compensation business along the
costal areas of China in order to lower production
costs and to enhance the competitiveness of their
products. In particular being faced with the two
major problems
problems of shortage of labour supply and
inflation in recent years, Hong Kong manufacturers
continuously shift their production processes to
The scale of production of Hong
the
mainland.
Kong enterprises in China is getting closer to
that adopted in domestic production in Hong Kong.
This has resulted in structural changes in Hong
Kong's export trade, ie. exports previously
produced in Hong Kong have now become exports of
products made in mainland China. This situation
is reflected in the Hong Kong statistics as a
slight fall or small increase in Hong Kong
exported products while Chinese re-exports through
rise. Hong Kong
The transfer of Hong Kong s
industries to the
mainland is another reason for
the rapid expansion in entrepot trade mentioned
above.
(iv) The supply of fresh, live and frozen products from
the
mainland to Hong Kong has played an important
part in trade between the two places.