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village communes.
The
long-term development strategy of
China remains that of implementing domestic economic reforms along with opening up to the outside world. This is in line with Hong Kong's own interest as it will benefit
from China's continuous and steady economic growth.
37.
of much concern to Hong Kong manufacturers and
investors in China are the trade sanctions on China that
may be imposed by the United States under the Section 301
and Special 301 trade laws.
Unlike the Most Favoured
Nation (MFN) issue, it is not immediately apparent as to
the form and extent of retaliation that would be instituted
by the US Administration if
actionable practices are
This is particularly so for
taken under Section 301.
confirmed to be in existence.
the actions that may be
Meanwhile, pursuant to Special 301, a provisional list of
sanction items has been released by the US Administration.
It will be difficult for Hong Kong to be insulated from the
impact of US actions, given that two-thirds of China's
exports to the United States are channelled through Hong
Kong. Moreover, more than 80% of Hong Kong's re-exports of
China origin to the United States are related to outward
processing activities in China commissioned by Hong Kong
companies.
38.
The year-on-year rate of increase in the retail
prices of goods from China rose further in the third
quarter of 1991, largely because of a temporary upsurge in
the retail prices of certain essential foodstuffs from
China in the months of July and August. This has fed into
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