TNAG-0743-FCO40-947-Relations-between-China-and-Hong-Kong-1978 — Page 283

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DAILY REVIEW OF BUSINESS TOPICS IN THE CHINESE LANGUAGE PRESS

Translated by the Trade Industry and Customs Department, Ocean Centre, Kowloon, Hong Kong.

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PROCESSING OF EK PRODUCTS IN CHINA BRISTLES WITH DIFFICULTIES

INDEX

OFFICUR

BY

Ming Pao Evening News (2/9/78)

No

Reliable sources disclosed that HK has been dispatching processing

orders to China since early this year, the largest of which are for garments,

electronics, leather goods and gloves. Orders now under negotiation are for

clocks and watches, cameras and plastic products.

However, certain problems reamin to be settled regarding HK goods

being processed in China, e.g. how to determine the processing charges, transo

port of products, communication and export of processed products.

A well-known industrialist in HK said although he was eager to

send his goods, viz. clocks and watchea to China for processing, the problem

of certification of origin worried him. Were he to deliver the clocks and

watches to China for processing or assemblage, he would not qualify for the

issue of a HK Certificate of Origin. At present, he said, the parties concerned

are studying this problem.

It is believed, said the newspaper, that despite all the existing

difficulties, the future of this line of business is bright. By the creation

of processing areas for unfinished products from overseas, China aims at not

only increasing its revenue but also training up its skeleton staff of technicians

and learning from countries abroad industrial management expertise, so as to

bring about improvement in its home industries. HK manufacturers, on the

other hand, also feel that such arrangement will relieve them, to a certain

extent, from the pressure of high workers' wages and rentals of factory premises.

Since both parties will benefit from this arrangement, it is expected that

the parties concerned in China and HK will work hard to overcome the existing

difficulties.

Issue Number: 69/78

Date: 5/9/78