TNAG-2749-FCO40-3964-Economic-situation-in-Hong-Kong-1993 — Page 251

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

SUPPLEMENTARIES

EXPORTS TO CHINA

WEAK POSITION IN CHINA AND HONG KONG?

WHY SHOULD BRITISH COMPANIES DO BUSINESS WITH THIS CENTRALLY PLANNED ECONOMY?

Companies from other European countries have consistently paid more attention to China, and won a bigger market share than us.

It is therefore

a top DTI priority to stimulate more serious and substantial interest and help new firms into the market.

There are

signs of growing interest: 90 strong

CBTG mission in November; 20 strong S China visit with Minister. Over 500 delegates attended 4

seminars on the Hong Kong airport last year.

We have

-

and will

continue to have after

1997 - a strong position there (900 UK companies

with Hong Kong offices; £2 billion direct

investment; over £50 bllion stock

market value of UK controlled or managed companies).

It is too important a market for companies to ignore. Central

planning still plays a major role but since 1979 the reform programme has transformed China's economy. China is moving steadily towards a market economy, more and more enterprises are run independently from the central authorities and the Chinese are looking now at ways to inject commercial realism into the shrinking state owned sector.

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