TNAG-1621-FCO40-2235-Relations-between-Hong-Kong-and-China-1987 — Page 74

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(ii) China as a supplier of construction

materials

24.

At one time, China was the largest supplier to Hong Kong of the principal construction materials such as

steel bars and cement. But its importance, both in

absolute and in relative terms, has declined since 1982

(Table 11). In 1985, China was the fourth largest

supplier of steel bars and cement to Hong Kong.

At a

total value of HK$196 million in 1985, imports from China

accounted for 8% of all imports of steel bars and cement

into Hong Kong. It is notable that, beginning in 1984, Hong Kong has become a net exporter of cement to China. In 1984 and 1985, Hong Kong's exports of cement to China were four times greater than its imports from China.

25.

(e) Trading

Hong Kong's role as an access point to China in respect of external trade can best be illustrated by the very rapid growth in entrepôt trade between Hong Kong and China since the late 1970s (Table`12). Since 1980, China

has become the largest market for Hong Kong's re-exports,

in addition to its traditional position as the largest

source of goods re-exported through Hong Kong. In 1985, more than three-quarters of Hong Kong's entrepôt trade involved China, either as a market or as a source of

supply.

26.

The increasing importance of Hong Kong as an entrepôt for China is related to the fact that Hong Kong is an important financial, communications and business centre in south east Asia and is equipped with modern and

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