ENG-1995 — Page 79

THE ECONOMY

Employment by major service sector

1980

Others 51.6%

Wholesale, retail, import/export trades,

restaurants and hotels

Wholesale, retail,

28.3%

import/export trades,

restaurants and

hotels

20.0%

Transport, storage and

commu-

nication

7.3%

Financing, insurance,

1995

Others 27.7%

Transport, storage and

commu- nication

Financing, insurance,

real estate and business services

Community, social and personal services 20.8%

real estate and

Community, social

11.4%

business

services

and personal services 16.5%

4.6%

11.8%

Over the years, the distributive and catering trades, community, social and personal services, as well as financing, insurance, real estate and business services, have become important employers in the services sector.

Over the years, the pressure of protectionism in a number of major markets and growing competition from other economies in East Asia have led to even greater diversification in both products and markets. This is attributable to the initiative of local manufacturers and exporters as well as their own dedicated promotion efforts. To maintain competitiveness, there has also been a continuous upgrading of product quality.

In consequence, some industries have emerged and grown, the most notable one being electronics. The textiles and clothing industries remain prominent, notwith- standing their continuous declines in relative importance. Other important industries include printing and publishing, machinery and equipment, fabricated metal pro- ducts, plastic products, watches and clocks and jewellery. Labour productivity in the manufacturing sector has improved significantly.

China has become the largest market for Hong Kong's domestic exports, accounting for about 27 per cent of domestic exports in 1995. The importance of other economies in the Asia-Pacific region as a market for Hong Kong's exports has also risen steadily over the years. Hong Kong's exports have diversified into new markets, including countries in the Middle East, Eastern Europe, Latin America and Africa.

Increasing Economic Links between Hong Kong and China

Economic links between Hong Kong and China have strengthened substantially since 1978. Both places have derived substantial benefits from this growing economic relationship. Continued economic reforms and trade liberalisation in China will open up more opportunities for further economic co-operation between the two places.

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