TNAG-1873-FCO40-2661-Relations-between-Hong-Kong-and-China-1989 — Page 68

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23.

The economy of Shenzhen City (including the

(21) Special Economic Zone (SEZ)) recorded rapid growth in 1988. Its contribution to gross national product and national income is expected to have reached Rmb 7.3

billion (+40% over 1987) and Rmb 6.5 billion (+36% över

1987) respectively, its gross industrial output value Rmb 8.8 billion (+50% over 1987), its exports US$1.85 billion (+30% over 1987) and its imports US$1.7 billion

(+20% over 1987). About 54% of the City's total industrial output volume was exported in 1988.

Investment

in infrastructural facilities is expected to have increased by 27% to Rmb 2.8 billion. During the first eleven months of 1988, Shenzhen signed 615 contracts with foreign investors (+85% over the same period in 1987) involving a total contracted value of US$400 million (+65%), of which US$380 million (+52%) had been realised.

24.

Shenzhen SEZ has recently tightened the control over its "second border", which separates the SEZ from the rest of China, in order to clamp down on illegal trading and movement of people between the SEZ and non-SEZ areas. The border which is under the jurisdiction of the Guangdong Provincial Government was first established in 1984 but control was relaxed significantly in 1987.

(II)

25.

Visible trade between Hong Kong and China

(Unless otherwise stated, all statistics in this section are from Hong Kong Trade Statistics.)

China remained Hong Kong's largest trading

(21) The Shenzhen Special Economic Zone (SSEZ) is part of

Shenzhen City. The statistics reported here are at current prices and refer to the City as a whole. But the share of the SSEZ in these totals is believed to be high.

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