Changes overtaking the telecommunications industry are giving it a central role in the development of the information economy. As an open service economy, Hong Kong’s future growth depends largely on the successful diffusion of these technologies. As the premier entropÔt of mainland China, Hong Kong’s economic prosperity relies heavily upon the ability of China to maintain its open door policy. China’s determination to do so is not in doubt, but the degree to which it is able to sustain high exports and imports levels will be, in part, a function of its ability to adopt and diffuse information technologies of its own. State enterprise reform and the shift towards a ‘socialist market economy’ will be essential ingredients in China’s competitive advantage in a region which has shown remarkably vigorous economic growth and social development, based largely upon an Asian blend of nationalism, foreign direct investment and export-oriented industrial policies. As a centre of information technology and innovation within Asia, Hong Kong’s contribution to China’s own economic and industrial advancement is already considerable and promises to become even greater in the years to come.