ENG-2010 — Page 508

430 History

spring of 1950. The population has continued to grow, reaching 4 million by 1971, 5 million by 1980, 6 million by 1994, and now over 7 million.

After a period of economic stagnation caused by the United Nations' trade embargo on China arising from the Korean War, Hong Kong began to industrialise. No longer could Hong Kong rely solely on its port to provide prosperity for its greatly increased population. The rise of Hong Kong's manufacturing sector began with the setting up of textiles mills. The mills gradually expanded their range of products and, by the 1960s, they included man-made fibres and garments. During this decade textiles and clothing made up about half of domestic exports by value.

Hong Kong has become an increasingly service-based economy over the past 20 years with domestic exports accounting for only 2.3 per cent of the city's total exports in 2010. Telecommunication equipment, plastics and jewellery are Hong Kong's major export items.

Over the years, the manufacturing sector has gradually moved from one concentrating on simple, labour-intensive products to one focusing on sophisticated, high value-added products. Taking advantage of the abundant supply of land and labour in the Pearl River Delta, industrialists have expanded their production bases across the boundary while retaining their headquarters in Hong Kong. This mode of operation has contributed to economic development in the region and facilitated the transformation of Hong Kong into a services centre.

In 1966, the year the Cultural Revolution was launched on the Mainland, tension mounted in Hong Kong. During 1967, this developed into a series of civil disturbances, affecting all aspects of life and temporarily paralysing the economy. But, by the year's end, the disturbances were contained and the community continued its tradition of peaceful progress.

Hong Kong continued to expand as an entrepôt, particularly for trade with China. Coupled with tourism, this led to vast improvements in communications, with an increasing number of people entering the Mainland from or through Hong Kong, the natural gateway, each year.

To keep pace with the development, the Government places strong emphasis. on improving and expanding infrastructure. As a result, Hong Kong has been transformed into a modern city with efficient road and rail links, and first-class port and airport facilities. New highways have opened up previously remote areas, the railway networks are being expanded, and Hong Kong International Airport at Chek Lap Kok has been in operation since 1998.

The new towns in the New Territories, which accommodate 48 per cent of Hong Kong's population, have eased the pressure on development of the main urban areas. Current planned projects continue to spur the economy, create jobs and enhance the environment.

The development of Hong Kong's economic base has enabled the Government to increase spending on education, social welfare, health and other needs over the years from $233.4 billion in 2000-01 to an estimated $317.2 billion in 2010-11.