1. Topic 2: Hong Kong’s relationship with the mainland and its role in Asia-Pacific Rim SUB-THEME 1 GROWTH AND DEVELOPMENT OF HONG KONG Chapter 2 Development of Hong Kong into an International City

2. The Mainland Hong Kong Closer Economic Partnership Arrangement signed2003 Economic and Trade Offices established in Singapore and Sydney1995 The Asia-Pacific Economic Cooperation formed1989 Economic and Trade Offices established in Tokyo1988 Economic and Trade Offices established in San Francisco1986 The Pacific Economic Cooperation Council formed1980 The Pacific Basin Economic Council formed1967 Period of drought1963-64 Korean War1950-53 Japanese occupied Hong Kong1941EventYear Time Track Hong Kong’s relationship with the mainland and its role in Asia-Pacific Rim

3. Mutual beneficial relations Before 1941: The mainland as the largest market and supplier 1941–1945: Sharp drop in trade during the Japanese occupation 1950s–1970s: Reducing exports to China Since the 1980s: Increasing imports and exports Major trading partner

4. Flow of capital between Hong Kong and the mainland From the mainland to Hong Kong The strong and reliable financial and legal infrastructures in Hong Kong have attracted a number of mainland corporations to invest in Hong Kong. More and more Hong Kong industries moved to the mainland. Besides investment, Hong Kong provides technology and management skills for the mainland. From Hong Kong to the mainland Hong Kong’s relationship with the mainland and its role in Asia-Pacific Rim

5. Hong Kong obtained water from Dongjiang ( 東江 ). Helped the mainland raise money. Signed the Mainland / Hong Kong Closer Economic Partnership. Arrangement (CEPA) 《內地與香港關於建立更緊密經貿關係的安排》 Mutual support between Hong Kong and the mainland Flow of capital between Hong Kong and the mainland

6. Hong Kong’s Role in the Asia-Pacific Rim The Asia-Pacific Rim is a market for Hong Kong’s exports. The Asia-Pacific Rim is a supplier of Hong Kong’s imports. Hong Kong’s relationship with the mainland and its role in Asia-Pacific Rim Trading partners

7. Hong Kong’s relationship with the mainland and its role in Asia-Pacific Rim Setting up of departments Regional cooperation Hong Kong Trade Development Council Hong Kong Economic and Trade Offices The Pacific Basin Economic Council The Pacific Economic Cooperation Council The Asia-Pacific Economic Cooperation Active role in the promotion of trade

8. Acting as a financial centre Acting as a management centre Many firms from all over the world set up regional headquarters in Hong Kong, for example, Jardine, Matheson and Company. Hong Kong’s relationship with the mainland and its role in Asia-Pacific Rim Deposit-taking companies from over 40 nations 72 Licensed banks 16 Restricted licence banks 49 Local representative offices 92 Insurance companies from the Asia- Pacific Rim

9. The End