XN000022-1990-09-08 — Page 4

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SATURDAY, SEPTEMBER 8, 1990

HK HAS 'SYMBIOTIC' RELATIONSHIP WITH SOUTHERN CHINA

AS A MANUFACTURING CENTRE, HONG KONG HAS DEVELOPED "SYMBIOTIC" RELATIONSHIP WITH THE SOUTHERN REGION OP CHINA, DIRECTOR OF INDUSTRY, MR T.H. BARMA, SAID ON FRIDAY (U.S. TIME).

A

THE

"WHEN THE MANAGEMENT SOPHISTICATION AND MARKETING FLAIR OF HONG KONG ARE INTEGRATED WITH THE LOW-COST AND HIGH-VOLUME PRODUCTION CAPABILITIES OF CHINA, THE RESULT IS A FORMIDABLE ECONOMIC FORCE THAT PRESENTS A GENUINE CHALLENGE TO THE OTHER DYNAMIC ASIAN ECONOMIES' CURRENT DOMINATION OF LIGHT AND LOW-TECHNOLOGY MANUFACTURING INDUSTRIES, HE SAID.

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SPEAKING AT A ONE-DAY SEMINAR ENTITLED 'HONG KONG WORKS" IN SAN JOSE, CALIFORNIA, MR BARMA SAID OVER THE LAST FIVE YEARS HONG KONG'S MANUFACTURING BASK HAD BECOME INCREASINGLY INTEGRATED WITH SOUTHERN CHINA.

"INCREASINGLY, OUR MANUFACTURERS ARE USING HONG KONG TO DO PRODUCT DESIGN AND ENGINEERING, WHILE ACTUAL LABOUR-INTENSIVE OPERATIONS ARE PERFORMED IN CHINA.

"THE FINISHED GOODS ARE TESTED, PACKAGED, DISTRIBUTED AND MARKETED FROM HONG KONG, HE SAID.

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MR BARMA SAID THIS "SYMBIOTIC" RELATIONSHIP WAS NOT JUST A THEORY BUT A REALITY. HONG KONG S MANUFACTURERS NOW EMPLOYED OVER TWO MILLION WORKERS IN CHINA WHICH WAS THREE TIMES HONG KONG'S OWN INDUSTRIAL LABOUR FORCE.

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IN ADDITION, HE SAID, HONG KONG CONTINUED TO BE THE GATEWAY CHINA. CHINA WAS NOW THE LARGEST MARKET FOR HONG KONG'S RE-EXPORTS AND THE SECOND LARGEST MARKET FOR ITS DOMESTIC EXPORTS.

CHINA, IN TURN, SENT OVER ONE-THIRD OF ITS MERCHANDISE TO HONG KONG, OR THROUGH HONG KONG TO OTHER DESTINATIONS.

MR BARMA SAID CHINA AND HONG KONG WERE ALSO CLOSE

PARTNERS.

EXPORTS

INVESTMENT

"CHINA IS THE THIRD LARGEST, NON-LOCAL INVESTOR IN HONG KONG'S MANUFACTURING INDUSTRIES AFTER THE UNITED STATES AND JAPAN.

"ON THE OTHER HAND, HONG KONG ACCOUNTS FOR TWO-THIRDS OF DIRECT FOREIGN INVESTMENT IN CHINA, AT US$11.5 BILLION, MOST OF WHICH IS IN SOUTH CHINA, HE SAID.

MR BARMA SAID THIS ECONOMIC INTER-DEPENDENCE HAD NOT BERN CHANGED BY THE EVENTS WHICH TOOK PLACE IN CHINA IN JUNE LAST YEAR.

"AS YOU ARE AWARE, CHINA PUBLICLY ITS 'OPEN DOOR' POLICY,

HAS SINCE

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HE SAID.

REPEATEDLY

RE-AFFIRMED

/TURNING TO