XN000022-1995-11-22 — Page 38

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Reply:

Mr President,

The Industry Department conducts, on a regular basis, studies and surveys on the manufacturing industry. These studies analyse the strengths and weaknesses of specific industrial sectors and make recommendations on how the Government could The most assist to enhance their capability for high value-added production. intensively developed capital intensive and higher technology industries covered by these surveys and studies include the production of liquid crystal displays, micro- motors, printed circuit boards, integrated circuit assembly, plastic injection moulding machinery, die-casting, micro-batteries, and transistors. In these areas, Hong Kong enjoys a leading position both in terms of volume production and technology level among the other Asian developing economies. In addition, the linkage industry which converts raw materials into semi-manufactured parts and components, the printing and computer software industries are also growing well. And the technology level of the computer software industry is comparable to that of industry leaders in the region, and the total value of output is just behind Taiwan.

Effective and productive technology collaboration with China must be market- driven. Already there is a considerable degree of collaboration between Some of our research/tertiary institutions in Hong Kong and those in China. industrialists are also making use of Chinese technology resources in their production processes. In addition, since June this year the Government has operated a financial assistance scheme aimed at encouraging and facilitating local companies to undertake applied research and product development projects which draw on research and development (R&D) and technological expertise in China. The scheme, called the Co- operative Applied Research and Development Scheme (CARDS), offers funds up to 75% of the cost of an approved applied R&D project provided it is to be undertaken by a project team comprising relevant researchers from research/tertiary institutions in China and Hong Kong. So far, three projects in the telecommunication and biotechnology fields have been approved, with a commitment totalling $16 million under the scheme. The Administration will continue to explore opportunities for further technology co-operation with China.

End/Wednesday, November 22, 1995

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