(c)
i
A strong currency, above everything else, makes Hong Kong valuable to China. (framed para, page 28)
(d) Hong Kong provides an estimated 25-40%) of China's
foreign exchange earnings, about 90% of the investment in SEZS, and some 60-70% of the total foreign investment in the People's Republic. Its services to China also include technical advice for hotels and other joint ventures of many kinds. (text, page 37)
(e)
The Hong Kong commercial infrastructure and China expertise for firms new to China could only be duplicated after substantial investment and development in China. (text, page 37)
(f) The BOC (Bank of China) obtains an estimated
40% of its total requirement of foreign currencies in the Hong Kong market. (text, page 38)
(g) Hong Kong - at the very least - could serve as a "tertiary" (oil exploration) base, providing finance, banking, supplies and communications. Ideally placed for all such activities, its enterprises are in a strategic position to cooperate with international support service companies to provide the facilities and other requirements not available in China. (text, page 41)
(h)
(i)
(j)
Hong Kong can and does contribute capital,
financial services, marketing expertise, and modern
management techniques to the SEZs - all of which are necessary for the successful development of the zones. The zones
reciprocate by helping Hong Kong overcome its shortages of low-cost land for capital-intensive
heavy industry, and the low-cost labor required for small industries. Economic cooperation between Guangdong and Fujian provinces and Hong Kong
will consequently be beneficial to each. (text, page 44)
Geographic proximity and kinship relations between Hong Kong and Shenzhen provide a stimulus to the latter's development unmatched by the other SEZS. (text, page 45)
The good will engendered by more frequent contacts between relatively developed, capitalist Hong Kong and less developed, socialist China, through the Shenzhen corridor and its economic links with both, should have positive and beneficial effects in both directions. Mutual understanding results from economic, social, political, and technical relations and their varied interactions to an extent not possible without such contacts and the friendships they engender. that enter the China market through Shenzhen (or the other SEZs.) will be in a particularly advantageous position, learning as they earn the fruits of friendship and trust which are so important
to the Chinese regardless of their political and social proclivities. (text, page 48)
Firms
14.3
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