China boom could prove double-edged sword for HK – Susan Fenton

From Reuters (link)

China’s economic boom is taking Hong Kong’s economy along with it for now, but the rapid development of infrastructure and services on the mainland could undercut the city’s longer-term competitiveness.

Hong Kong has become one of Asia’s strongest economies, expanding by more than 7 percent annually in the past two years with help from robust exports, including re-exports of Chinese goods.

Air cargo through the city is expanding as a result. But growth in sea trade has diminished because the cost of shipping a 40-foot container through expanding ports in southern China, including trucking, is US$200 less than through Hong Kong.

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