5 Responses to “ Why Are Hong Kong And Macao Important To The Economy Of China? ”

1. Ted H on August 9th, 2009 8:45 am

   MACAU
   Macau’s economy is based largely on tourism, including gambling, and textile and garment manufacturing. Efforts to diversify have spawned other small industries, such as footwear, and machinery and mechanical appliances. The clothing industry has provided about three-fourths of export earnings, and it is estimated that the gambling and related industries contributed more than 46.5% of GDP in 2006. The opening of the formerly monopolized gambling sector in 2002 has led to significant new investment in casinos, hotels, and related facilities. More than 27 million tourists visited Macau in 2007. The recent growth in gambling and tourism has been driven primarily by mainland Chinese and tourists from Hong Kong.
   Macau depends on China for most of its food, fresh water, and energy imports. The European Union and Hong Kong are the main suppliers of raw materials and capital goods.
   In the last few years much of Macau’s manufacturing operations (mainly textiles and garments) have moved across the border to mainland China. Mainland competition, along with the 2005 end of Multi-Fiber Arrangement (MFA) quotas, which had provided a near guarantee of export markets, will eventually spell the end of Macau’s low-end mass production of textiles, which has comprised the bulk of the SAR’s merchandise export earnings. For future growth, Macau is betting heavily on becoming a regional center for gaming, tourism, conventions and corporate incentive travel; foreign and local investors have massively expanded the casino, hotel and restaurant sector. http://www.traveldocs.com/mo/economy.htm
   HONG KONG
   The mainland has long been Hong Kong’s largest trading partner, accounting for 46% of Hong Kong’s total trade by value in 2006. As a result of China’s easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 13.6 million in 2006, when they outnumbered visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. Bolstered by several successful initial public offerings in 2007, mainland companies by September 2007 accounted for one-third of the firms listed on the Hong Kong Stock Exchange, and over half of the Exchange’s market capitalization. Hong Kong’s service industry over the past decade has grown rapidly as its manufacturing industry has moved to the mainland and now accounts for 91% of the territory’s GDP.https://www.cia.gov/library/publications…
   Hong Kong has a superb sheltered natural harbor. Hong Kong has little arable land and few natural resources within its borders, and must therefore import most of its food and raw materials. Hong Kong is the world’s 11th largest trading entity, with the total value of imports and exports exceeding its gross domestic product. As of 2006, there are 114 countries that maintain consulates in Hong Kong, more than any other city in the world. Much of Hong Kong’s exports consists of re-exports, which are products made outside of the territory, especially in mainland China, and distributed through Hong Kong. Even before the transfer of sovereignty to the People’s Republic of China, Hong Kong has established extensive trade and investment ties with mainland China. The territory’s autonomous status enables it to serve as a point of entry for investments and resources flowing into the mainland. The Hong Kong Stock Exchange is the 6th largest in the world, with a market capitalization of about US$2.97 trillion. In 2006, the value of initial public offerings conducted in Hong Kong was second highest in the world after London.http://en.wikipedia.org/wiki/Economy_of_…

2. dy on August 9th, 2009 12:14 pm

   Hong Kong has the freest ecomony in the world. It is a major point for finance, investments, and businesses. Since China is booming, many Hong Kong companies are building branch offices in China. That’s where the money is. Same thing for Macau and Shenzhen.
   I believe Shenzhen, Zhuhai/Macau are the Special Economic Zones.

3. White Shooting Star of HK on August 9th, 2009 2:30 pm

   I wouldn’t say macau is that important, but Hong Kong is definitely important-its one of China’s main ports.

4. Man on August 9th, 2009 9:03 pm

   political impact also very important for they are capitalism region.

5. Edmunde on August 9th, 2009 11:41 pm

   they are a door to the Western worlds and the capitalist world

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