S the massive programme of infrastructural projects gets underway; and as its burgeoning services sector develops.
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then there is Hong Kong's importance as a gateway to Southern China. Hong Kong and China are each other's largest trading partners and one third of China's exports pass through Hong Kong. In other ways the two economies are already very closely integrated. Hong Kong entrepreneurs now own 15,000 enterprises in Guangdong employing three million workers. Effectively Hong Kong's manufacturing industry is now based in South China. These links will develop further. South China has the potential over next decade to become the fastest growing economic region in the world.
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Hong Kong is a focal point for the wider Asia Pacific Rim. It is well situated geographically, is the regional financial centre, enjoys excellent communications and is thus an ideal entry point for companies new to this hugely important trading bloc.
Hong Kong has always played an important and constructive role in multilateral trade organisations. We share a common desire to see the Uruguay Round of talks under GATT succeed to ensure an end to protectionism enabling world trade to operate and expand within a truly open environment.
So how is the UK performing in Hong Kong? It is rather a good story. It is our 15th largest export market. Last year we sold over four times as much to Hong Kong as we sell direct to China and almost half as much as we sell to Japan which has an economy 49 times the size of Hong Kong's. This year we have got off to a spectacular start with increases of over 30% in exports over last year.
Invisibles is also an extremely important sector for us in Hong Kong. UK companies already have a very large presence there. Although it is difficult to quantify accurately it is estimated that the revenue to UK companies from invisibles business in Hong Kong is at least equal to the value of our visible exports. This sector can only increase in importance as Hong Kong moves further from a manufacturing to a service economy. Partnerships between UK and Hong Kong companies have been important in developing a