Hong Kong and its Intermediate Role in Cross-Strait Economic Relations

  • Teh-chang Lin


The political antagonism between Taiwan and mainland China over the years, but especially since 1987, has made the movement of people, goods and investment across the Taiwan Strait reliant on a ‘third place’ – Hong Kong. The policy of openess and economic reform in mainland China since 1978, and the ability of Taiwanese residents to visit their relatives in mainland China, have induced and enhanced economic communication across the Strait. However, because ‘three direct links’ (trade, postal and shiping) are still impossible between Taiwan and mainland China, trade and investment from Taiwan to mainland China need to be channeled by way of Hong Kong. Thus, Hong Kong becomes an important entrepôt in the development of cross-Strait economic relations.


Foreign Direct Investment Trade Flow Economic Relation Intermediate Role Hong Kong Special Administrative Region 
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© Palgrave Macmillan, a division of Macmillan Publishers Limited 2000

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  • Teh-chang Lin

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