THURSDAY, NOVEMBER 6, 1986
33
YAXLEY EMPHASISES HK'S ROLE AS GATEWAY TO CHINA
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THE GROWING ECONOMIC LINKS BETWEEN HONG KONG AND CHINA WILL PROVIDE NOT ONLY INCREASING BUSINESS OPPORTUNITIES FOR HONG KONG AND FOREIGN INVESTORS BUT WILL ALSO HELP CHINA TO ACHIEVE ITS ECONOMIC OBJECTIVES.
THE IMPORTANCE OF HONG KONG AS A GATEWAY TO THE EXPANDING MARKET IN CHINA WAS UNDERLINED BY THE SECRETARY FOR ECONOMIC SERVICES, MA JOHN YAXLEY, WHEN HE ADDRESSED THE HONG KONG TRADE ADVISORY GROUP SEMINAR IN LONDON TODAY (THURSDAY).
+WHILE CHINA HAS ESTABLISHED AND STRENGTHENED DIRECT CONTACTS WITH MANY ECONOMIES IN RECENT YEARS, IT IS EVIDENT THAT HONG KONG, WITH ITS PROXIMITY TO CHINA AND ITS NATURE AS A HIGHLY EXTERNALLY ORIENTED ECONOMY, IS BEING INCREASINGLY USED BY CHINA AS AN INTERMEDIARY FOR FACILITATING BUSINESS, + MR YAXLEY SAID.
HE POINTED OUT THAT THE PHENOMENAL UPSURGE IN HONG KONG'S TRADE WITH CHINA SINCE THE COUNTRY'S OPEN DOOR ECONOMIC POLICY BEGAN IN 1978, HAD ADDED A NEW IMPETUS TO HONG KONG'S ECONOMY WITH PROFOUND IMPLICATIONS FOR THE FUTURE PATH OF THE TERRITORY'S ECONOMIC DEVELOPMENT.
CHINA'S SEVENTH FIVE YEAR PLAN COVERING 1986-90 RECOGNISED THAT THE LEVEL OF TECHNOLOGY IN ITS INDUSTRIAL ENTERPRISES WAS GENERALLY BACKWARD, AND THAT SIGNIFICANT BOTTLENECKS EXISTED IN SUCH AREAS AS ENERGY AND TRANSPORT WHICH WERE IMPOSING SERIOUS CONSTRAINTS ON CHINA'S ABILITY TO EXPORT AND ON ITS LONGER TERM ECONOMIC DEVELOPMENT.
+BECAUSE OF THIS, VARIOUS MEASURES AND INCENTIVES HAVE BEEN INTRODUCED BY THE CHINESE GOVERNMENT TO ENCOURAGE FOREIGN INVESTMENT IN CHINA. THE FIVE YEAR PLAN INDICATES THAT HEAVY INVESTMENT WILL CONTINUE TO BE MADE TO IMPROVE THE RAILWAY NETWORK, THE ROAD SYSTEM, PORT FACILITIES AND POWER SUPPLIES,+ HE SAID.
A FEW OF THESE PROJECTS WERE IN THE FORM OF JOINT VENTURE WITH OUTSIDE INVESTORS.
EXAMPLES CLOSE TO HONG KONG WERE THE PROPOSED SHENZHEN CANTON SUPERHIGHWAY, WHICH WAS TO BE FINANCED BY TOLLS, A COAL-FIRED POWER STATION AT SHA JIAO (NEAR SHENZHEN), AND THE NUCLEAR POWER STATION AT DAYA BAY, WHICH WAS MAKING EXTENSIVE USE OF FRENCH AND BRITISH CAPITAL EQUIPMENT, HE ADDED.
ON FUTURE GROWTH IN TRADE WITH CHINA, MR YAXLEY SAID HE BELIEVED THE LONG-TERM PROSPECTS WERE GOOD BUT HE SOUNDED A NOTE OF CAUTION FOR THE SHORTER TERM.
/+THE VERY ...