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grown rapidly since 1979. At the same time the SSEZ has
been experiencing a large visible trade deficit. By 1983, the estimated value of total foreign trade conducted by SSEZ was US$724 million. With imports valued at US$604 million and exports at US$120 million, a trade deficit of US$484 million is implied. This deficit has probably been financed by an inflow of foreign exchange from the rest of China, an inflow of foreign investment capital and the SSEZ's net foreign exchange earnings from tourists, largely from Hong Kong. (Details in later paragraphs)
10.
Much of the SSEZ's prosperity in recent years seems to have been built upon its flourishing "entrepot" trade between the interior of China and the outside world through Hong Kong, particularly in relation to flows of
goods into China. The total value of final sales in the SSEZ in 1983 was reported to be Rmb 1.25 billion and in 1984 it may have reached Rmb 1.6 billion. These purchases were mostly made by the local population and by visitors to the SSEZ from other parts of China.
11.
Unlike its industrial sector, the SSEZ's trade sector although small is significant in the national context. About 1.7% of China's foreign trade in 1983 (US$43.6 billion) was conducted in the SSEZ. The corresponding proportions for exports and imports were 0.5% and 2.8% respectively.
12.
About US$580 million of foreign investment in the SSEZ had been realised by the end of 1984. Around 80% or 90% of this is said to have been contributed by investors from Hong Kong. According to some estimates, investment in the SSEZ accounts for nearly one third of the foreign investment channelled into Guangdong and about 10% to 15% of direct foreign investment in the PRC.
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