The Relationship Between Hk And China

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History of Economics Relation between Hong Kong and China The relationship between Hong Kong and China are inseparable. Since begin in 19 century, the state of the political situation always uncertain. For example, the world War I and World War 2. Countries want their country prosperous so they are trying to find resources externally. Because the natural resources of China are very rich, therefore China has attracted a lot of power nation to infringe its resources. In 1842, China and British sign Treaty of Nanking. Hong Kong Island will be unconditional cession to the British. At that moment to now, Hong Kong change from a small fishing village to a financial centre. Also, the success of Hong Kong is related to change in political situation in China. When new China is established in 1949, it carries out a planned economy. All assets are owned by the government. The foreign people want to enter the China to do the business is impossible. It has a lot of demand on exporting. Hong Kong enterprises have enlarged the business activity of China. The amount of trade has increased largely. Also, the china labor have moved to Hong Kong, bring their capital, technique and labor force, stimulate the financial and manufacturing industry. Since British have embargo to China. The trade between China and Hong Kong is very low. At 1978, China has a large reform. Since Hong Kong is approach China, it have an advantages to Hong Kong, therefore, a lot of Hong Kong business man enter China to develop China economy. In this time of revolution, the development of industry of Hong Kong became boomed. However, Hong Kong is densely populated. Therefore, the rent of the property is very expensive. For this reason, a lot of business man have transfer their production line to China, and use the lower labor cost, thus largely reduce their production cost and increase their profit. It
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