XN000022-1990-09-15 — Page 3

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SATURDAY, SEPTEMBER 15, 1990

HK AND CHINA MAINTAIN INEXTRICABLE ECONOMIC LINK

THE BEST GUARANTEE FOR HONG KONG IS AN EXPANDING WHICH ALL CAN SHARE, THE SECRETARY FOR ECONOMIC SERVICES, CHAN, SAID IN THE UNITED STATES.

ECONOMY IN

MRS ANSON

COMMITTEE ON

SPEAKING AT A LUNCHEON MEETING OF THE NATIONAL US/CHINA RELATIONS IN NEW YORK YESTERDAY (FRIDAY), MRS CHAN SAID CHINA HAD ALWAYS FEATURED IN HONG KONG'S ECONOMIC GROWTH.

EACH OTHER'S SHE NOTED

HONG KONG AND CHINA WERE THAT IMPORTANT TRADING PARTNERS, ACCOUNTING FOR ABOUT 30 PER CENT OF OTHER'S EXTERNAL TRADE.

MOST

EACH

APART FROM TRADE IN GOODS, TRADE IN SERVICES BETWEEN HONG AND CHINA HAD ALSO STEPPED UP SIGNIFICANTLY, SHE ADDED.

KONG

CHINA

"ONE EXAMPLE IS IN THE DRAMATIC UPSURGE OF TRIPS MADE TO

"I SHE SAID, ADDING BY HONG KONG RESIDENTS FOR BUSINESS AND PLEASURE,

SOURCE OF CHINA'S THAT HONG KONG WAS PROBABLY THE MOST IMPORTANT OVERALL TOURIST RECEIPTS, ESTIMATED AT ABOUT US$2.2 BILLION IN 1988.

TURNING

WAS THE MOST

KONG TO THE INVESTMENT SIDE, MRS CHAN NOTED THAT HONG

EXTERNAL INVESTMENT IN CHINA, SOURCE OF IMPORTANT

THE NUMBER OF ACCOUNTING FOR ABOUT 70 PER CENT, IN TERMS OF BOTH VENTURES SET UP AND THE MONEY INVESTED.

INVESTMENT FOREIGN DIRECT

"IN THE PERIOD 1979 TO THE END OF MARCH 1989, CHINA APPROVED TOTAL OF 15,948 ENTERPRISES WITH A FOREIGN INVESTMENT CONTENT.

TO DATE AMOUNTED REALISED BILLION, SHE SAID.

A

ΤΟ

TOTAL US$12.1

IN ADDITION TO DIRECT FOREIGN INVESTMENT, MORE AND MORE OF HONG LABOUR KONG'S MANUFACTURING PROCESSES, PARTICULARLY THOSE WITH A HIGH

THE BORDER INTO CONTENT OR REQUIRING CHEAP LAND HAD MOVED ACROSS SOUTHERN CHINA.

"ABOUT TWO MILLION WORKERS IN GUANGDONG ARE NOW OR HONG KONG COMPANIES EITHER THROUGH JOINT VENTURES COMMISSIONED BY HONG KONG COMPANIES IN THE FORM OF OUTWARD ACTIVITIES AND COMPENSATION TRADE.

11

WORKING FOR IN PROJECTS

ON CHINA'S INVESTMENT IN HONG KONG, MRS CHAN SAID: NOW AN IMPORTANT SOURCE OF FOREIGN INVESTMENT IN HONG KONG.'

PROCESSING

"CHINA IS

It

IN IN

OF THE CUMULATIVE WHILE HONG KONG HAD NO RELIABLE ESTIMATE TOTAL OF CHINA'S INVESTMENT IN HONG KONG BECAUSE OF THE DIFFICULTY TRACING THE ULTIMATE OWNERSHIP OF PHYSICAL AND FINANCIAL ASSETS

THE LARGEST SINGLE EXTERNAL THE TERRITORY, CHINA MIGHT WELL NOW BE

INVESTOR IN THE HONG KONG ECONOMY, SHE SAID.

/"IN THE