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MAY HAVE A BEARING ON ITS FUTURE RELATIONS WITH TAIWAN.
THE SYMBIOTIC ECONOMIC RELATIONSHIP BETWEEN SOUTHERN CHINA AND HONG KONG GREW OUT OF CHINA'S POLICIES OF MODERNIZATION AND
THESE TRENDS ACCELERATED OPENING TO THE OUTSIDE IN 1979. DRAMATICALLY AFTER THE 1984 JOINT DECLARATION.
LURED BY
TODAY
INVESTMENT OPPORTUNITIES, HONG KONG BUSINESSMEN SPREAD INTO CHINA, RELOCATING FACTORIES PROCESSING GOODS FOR EXPORT. 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.
FOREIGN INVESTMENT, MUCH OF IT FROM HONG KONG, HAS GENERATED ECONOMIC DEVELOPMENT AND WEALTH IN CHINA.
THIS HAS
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
THESE INTERESTS OFFER CHINA
TRADERS, AND CONSTRUCTION AND MANUFACTURING UNITS HAVE ALSO SET
UP COMPANIES IN HONG KONG. 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.
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