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oil price rises in August, coupled with a pick-up in economic activity in the latter part of the year gave rise to additional inflationary pressures. As a result, the inflation rate for 1990 is 9.9 per cent, compared with 10.1 per cent in 1989.
33. Economic links between Hong Kong and China are mutually beneficial and fast increasing. The relationship is particularly intimate in terms of trade and investment.
Hong Kong and China are now each other's largest trading
partner and largest source of external investment. Hong
Kong's total exports to China in 1990 amounted to
HK$158.4 bn, an increase of nearly 8% over 1989. of this
reexports accounted for HK$111 bn. Imports from China,
valued at HK$236.1 bn, increased by 20%. Hong Kong
investments accounted for about two-thirds of the total
foreign investment in China and are particularly significant in Guangdong where around 1.5 to 2 million job opportunities are being provided by Hong Kong companies. Additionally, Hong Kong has become an important regional centre providing financial, professional and other business services to
China, and serving as a convenient venue for China to make
business contacts with the rest of the world.
IX PORT AND AIRPORT DEVELOPMENT STRATEGY
34.
The Hong Kong Government have continued to implement the Port and Airport Strategy. Port development is mostly financed by the private sector, while it is intended that
the airport, with its considerable associated
infrastructure, will be financed by both the Government and the private sector.
(a) The airport
35. Good progress was made on the new airport and related infrastructure projects in the course of 1990. A number of engineering, feasibility and financial studies were
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