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constraints on the development of the Hong Kong economy. Labour intensive
jobs have been exported to the Mainland and Hong Kong itself is focusing
more on developing its service industries.
Meanwhile, Hong Kong has also resumed its original role of facilitating
trade with China. The Colony was created in the 19th century for that
very purpose. For political reasons, both in China and the West, this was
not possible from the 1950s to the 1970s but, with the death of Mao Zedong
and the downfall of the Gang of Four, China reopened its doors to the
outside world and Hong Kong, after an interruption of three decades, is
once again playing its historical role.
trade has grown, the re-export trade
of China
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Much as Hong Kong's domestic
mostly goods passing into and out
has grown even more. In 1981, Hong Kong's domestic exports
amounted to HK$80 billion (thousand million), whereas re-exports were
about half that amount. Ten years later, domestic exports had almost
tripled. But re-exports had grown 13-fold so that, in 1991, re-exports
were more than double the value of the territory's domestic exports. This
shows, quite dramatically, that Hong Kong is again playing the role of
facilitator of business between China and the rest of the world. Hong
Kong and China are now each other's largest trading partner.
China accounts for 10.6 per cent of overseas investment in Hong Kong's
manufacturing sector, exceeded only by Japan, with 31.5 per cent, and the
United States, with 30.6 per cent. Britain is in fourth place, with 7.1
Moreover, more than 600 foreign companies have their regional
headquarters in Hong Kong.
per cent.