ABSTRACT
Since 1979, China has made tremendous progress in its economic reform, which has two major aspects: the internal restructuring of the economy, and the opening up of the economy to external trade and foreign investment. All the three economies of Greater China - mainland China, Taiwan and Hong Kong - share one common feature, that is very high growth momentum. The differences between Hong Kong’s and Taiwan’s linkages with mainland China reflect the varied modes of politics within Greater China. The de-industrialization of Hong Kong has been phenomenal. Such a process can be termed ‘Manhattanization’, under which tertiary services rapidly dominates the economy. Taiwan has been much more guarded as far as economic integration is concerned, fearing that there would be serious political repercussions. Indirect trade between Mainland China and Taiwan grew 110 times in 1979-93, at an average annual rate of 55 per cent.
