ABSTRACT
The general economic conditions of China, Hong Kong, Macau and Taiwan have been reviewed in the last chapter. A strong and continuous expansion in the overall trade volume has been found in nearly all these Chinese economies, especially in the post-reform period. Coupledwith trade expansion is a period of rapid economic growth and improvement in per capita income, especially in China. In light of the development in international trade, the economic reforms and the open-door policy likely contributed significantly to the trade explosion and economic growth of China. Given the preferential policies favouring foreign investments – especially those slanted towards Hong Kong, Macau and Taiwan businessmen – investors from these economies had very strong incentives to explore the Chinese market. Their transactions should have accounted for a huge portion of the new trade flows made on the Mainland.
