TNAG-2468-FCO40-3592-Most-favoured-nation-status-for-China-Hong-Kong-interests-1992 — Page 179

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DECLARATION.

LURED BY INVESTMENT OPPORTUNITIES, HONG KONG

BUSINESSMEN SPREAD THEIR EFFORTS INTO CHINA, RELOCATING

FACTORIES THAT PROCESS GOODS FOR EXPORT.

TODAY MORE THAN

20,000 HONG KONG COMPANIES EMPLOY SOME 3 MILLION PRC WORKERS IN THESE PLANTS. MANY MORE WORKERS DEPEND INDIRECTLY ON THESE

ENTERPRISES FOR THEIR LIVELIHOOD.

THIS HAS

FOREIGN INVESTMENT, MUCH OF IT FROM HONG KONG, HAS

GENERATED ECONOMIC DEVELOPMENT AND WEALTH IN CHINA. LED CHINESE COMPANIES TO INVEST IN HONG KONG, STRENGTHENING TIES BETWEEN THE TWO ECONOMIES. CHINESE OWNED FIRMS PARTICIPATE IN INFRASTRUCTURE PROJECTS, INVEST IN THE PROPERTY MARKET AND STOCK EXCHANGE AND OPERATE TAXI FLEETS, HOTELS AND RESTAURANTS. CHINA HAS VERY SUBSTANTIAL INTERESTS IN HONG KONG'S BANKING SECTOR. CHINESE PROVINCIAL AND MUNICIPAL TRADERS, AND CONSTRUCTION AND MANUFACTURING UNITS HAVE ALSO SET UP COMPANIES IN HONG KONG. THESE INTERESTS OFFER CHINA COMPELLING INCENTIVES NOT TO TAMPER WITH HONG KONG'S ECONOMIC

SYSTEM.

AFTER 1997, THE WORLD WILL CONTINUE TO ENGAGE IN ECONOMIC

BY THAT TIME, MAINLAND RELATIONS WITH CHINA THROUGH HONG KONG. FIRMS WILL HAVE HAD MORE THAN 18 YEARS OF ON-THE-JOB TRAINING

THEY WILL USE HONG IN HOW TO DO BUSINESS THE HONG KONG WAY.

KONG AS A BASE TO INCREASE THEIR TRADE, INVESTMENT AND

FINANCIAL INTERCHANGE WITH THE REST OF THE WORLD JUST AS

FOREIGN FIRMS NOW USE HONG KONG AS A BRIDGE TO CHINA.