1.
succeed to ensure an end to protectionism enabling world trade
to operate and expand within a truly open environment.
Yet of all these aspects of Hong Kong's economic life it is,
perhaps, its trading relationship with China which is the most
fascinating and important. Hong Kong and China are already each
other's largest trading partners. Hong Kong accounts for 37 per
cent of China's total foreign trade and 75 per cent of foreign
investment into China. One third of China's exports pass through
Hong Kong. There is already very close integration between the
two economies. Hong Kong entrepreneurs now own 15,000 enterprises
in Guangdong employing three million workers. This compares with
only 730 thousand employed in manufacturing in Hong Kong. In
other words Hong Kong's manufacturing industry is now effectively
based in South China.
And what of China itself? Can there be any other market with
greater long term potential? Can there be any more exciting
opportunity for the intrepid entrepreneur or any better entry
point to the market than through Hong Kong? Guangdong province
already has a GDP per capita which is double the rest of China.
It has annual productivity growth of over 13 per cent and export
growth of 30 per cent. It is in the vanguard of economic reform
in China. The private sector there, in a country where we perhaps
all too easily assume the State still retains total control,
already accounts for some 60 per cent of industrial production.
Last week I met Rong Yiren,
Vice-Chairman of the
National
People's Congress of China. He took great pains to emphasise to