UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

     [X]  QUARTERLY  REPORT  UNDER  SECTION  13  OR  15(d)  OF  THE  SECURITIES
          EXCHANGE  ACT  OF  1934

          For  the  Quarterly  Period  Ended  June  30,  2001

     [ ]  TRANSITION  REPORT  UNDER  SECTION  13  OR  15(d)  OF THE SECURITIES
          EXCHANGE  ACT  OF  1934

                For  the  transition  period  from  _________  to  _________

                         Commission File Number: 0-28819

                           CHINA GATEWAY HOLDINGS INC.
        ----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

            Delaware
-------------------------------          ----------------------
(State or other jurisdiction of             (I.R.S. Employer
incorporation or organization)            Identification Number)

          Suite 706 Dominion Centre, 43-59 Queen's Road East, Hong Kong
             ------------------------------------------------------
                    (Address of principal executive offices)

                                011-852-2519-3933
                           --------------------------
                           (Issuer's telephone number)

                                 Not applicable
               ---------------------------------------------------
    (Former name, former address and former fiscal year, if changed since last
                                    report.)

Check  whether  the issuer (1) filed all reports required to be filed by Section
13  or  15(d) of the Exchange Act during the past 12 months (or for such shorter
period  that the registrant was required to file such reports), and (2) has been
subject  to  such  filing  requirements  for  the  past  90 days. Yes [X] No [ ]
As of June 30, 2001, the Company had 4,307,158 shares of common stock issued and
outstanding.  Transitional  Small  Business  Disclosure  Format:  Yes [ ] No [X]
Documents  incorporated  by  reference:  None.


<PAGE>
                           CHINA GATEWAY HOLDINGS INC.

                                      INDEX


PART  I.   FINANCIAL  INFORMATION

     Item  1.  Financial  Statements

          Consolidated  Balance  Sheets (Unaudited) - June 30, 2001 and December
          31,  2000

          Consolidated  Statements of Operations and Comprehensive Income (Loss)
          (Unaudited) - Three Months and Six Months Ended June 30, 2001 and 2000

          Consolidated  Statements  of Cash Flows (Unaudited) - Six Months Ended
          June  30,  2001  and  2000

          Notes  to  Consolidated  Financial Statements (Unaudited) - Six Months
          Ended  June  30,  2001  and  2000

     Item  2.  Management's  Discussion  and  Analysis  or  Plan  of  Operation


PART  II.  OTHER  INFORMATION

     Item  6.  Exhibits  and  Reports  on  Form  8-K


   SIGNATURES


<PAGE>
<TABLE>
<CAPTION>
CHINA  GATEWAY  HOLDINGS  INC.
CONSOLIDATED  BALANCE  SHEETS  (UNAUDITED)

                                                                                   December 31,
                                                             June 30, 2001            2000
                                                                   USD           RMB           RMB
<S>                                                           <C>           <C>           <C>
ASSETS

Current Assets:
  Cash                                                        $     5,131        42,482        80,085
  Deposits and other current assets                                 8,711        72,122        77,402
                                                              ----------------------------------------

    Total current assets                                           13,842       114,604       157,487
                                                              ----------------------------------------

Property, plant and equipment, net
       of accumulated depreciation                                  6,943        57,481        66,615
                                                              ----------------------------------------

    Total assets                                              $    20,785       172,085       224,102
                                                              ========================================

LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT)

Current liabilities:
  Accounts payable                                            $   109,383       905,615       905,615
  Other payable and accrued expenses                              113,751       941,775     1,087,312
  Due to Joint Venturer                                             2,360        19,546        19,546
  Due to related parties                                          475,946     3,940,500     3,090,580
                                                              ----------------------------------------

    Total liabilities (all current)                               701,440     5,807,436     5,103,053
                                                              ----------------------------------------

Shareholders' equity (deficit):
  Common stock, US $0.0001 par value,
    authorized 50,000,000 shares; issued and
    outstanding; 4,307,158 shares at June 30, 2001                    431         3,568         3,568
  Capital in excess of par                                      5,063,867    41,925,275    41,925,275
  Deficit                                                      (5,755,334)  (47,650,137)  (46,893,737)
  Accumulated comprehensive income (loss)                          10,381        85,943        85,943
                                                              ----------------------------------------

    Total shareholders' equity (deficit)                         (680,655)   (5,635,351)   (4,878,951)
                                                              ----------------------------------------

    Total liabilities and shareholders' equity (deficit)      $    20,785       172,085       224,102
                                                              ========================================
</TABLE>

See notes to consolidated financial statements.


<PAGE>
<TABLE>
<CAPTION>
CHINA GATEWAY HOLDINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
THREE MONTHS ENDED JUNE 30, 2001 AND 2000

                                                                 2001          2001          2000
                                                                  USD           RMB           RMB
<S>                                                           <C>           <C>           <C>

Net sales                                                     $         -             -             -
Cost of sales                                                           -             -             -
                                                              ----------------------------------------
Gross profit                                                            -             -             -


General and administrative expenses                                23,549       194,973       626,587
                                                              ----------------------------------------
                                                                  (23,549)     (194,973)     (626,587)


Other income:
  Interest income                                                       2            14           840
  Other                                                               600         4,971             -
                                                              ----------------------------------------

 Loss  from continuing operations                                 (22,947)     (189,988)     (625,747)

 Loss from discontinued operations of joint venture                     -             -    (1,888,723)
                                                              ----------------------------------------

Net loss                                                      $   (22,947)     (189,988)   (2,514,470)
                                                              ========================================

Other comprehensive income:
    Foreign currency translation adjustment                             -             -        11,072
                                                              ----------------------------------------

Comprehensive loss                                            $   (22,947)     (189,988)   (2,503,398)
                                                              ========================================

Earnings (loss) per common share:
  Loss from continuing operations                             $     (0.01)        (0.04)        (0.15)
                                                              ========================================
  Basic  Loss from discontinued operations                    $         -             -         (0.44)
                                                              ========================================
  Net loss                                                    $     (0.01)        (0.04)        (0.58)
                                                              ========================================

Weighted average number of common
    shares outstanding:
  Basic                                                       $ 4,307,158     4,307,158     4,307,158
                                                              ========================================
</TABLE>

See notes to consolidated financial statements.


<PAGE>
<TABLE>
<CAPTION>
CHINA GATEWAY HOLDINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 2001 AND 2000
                                                                 2001          2001          2000
                                                                  USD           RMB           RMB
<S>                                                           <C>           <C>           <C>

Net sales                                                     $         -             -             -
Cost of sales                                                           -             -             -
                                                              ----------------------------------------
Gross profit                                                            -             -             -

General and administrative expenses                                97,537       807,538     1,473,729
                                                              ----------------------------------------

                                                                  (97,537)     (807,538)   (1,473,729)

Other income:
  Interest income                                                       7            62         2,445
  Other                                                             6,169        51,075             -
                                                              ----------------------------------------

Loss from continuing operations                                   (91,361)     (756,401)   (1,471,284)

Income from discontinued operations of joint venture                    -             -       121,130
                                                              ----------------------------------------

Net Loss                                                      $   (91,361)     (756,401)   (1,350,154)

Other comprehensive income:
    Foreign currency translation adjustment                             -             -        13,069
                                                              ----------------------------------------
Comprehensive loss                                            $   (91,361)     (756,401)   (1,337,085)
                                                              ========================================

Earnings (loss) per common share:
  Loss from continuing operations                             $     (0.02)        (0.18)        (0.34)
                                                              ========================================
  Income from discontinued operations                         $         -             -          0.03
                                                              ========================================
  Net loss                                                    $     (0.02)        (0.18)        (0.31)
                                                              ========================================

Weighted average number of common
    shares outstanding:
  Basic                                                         4,307,158     4,307,158     4,307,158
                                                              ========================================

</TABLE>

See notes to consolidated financial statements.


<PAGE>
<TABLE>
<CAPTION>
CHINA GATEWAY HOLDINGS INC.
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 2001 AND 2000
                                                                 2001          2001          2000
                                                                  USD           RMB           RMB
                                                              ----------------------------------------
<S>                                                           <C>           <C>           <C>
Operating activities:
Net loss                                                      $   (91,361)     (756,401)   (1,350,154)
Adjustment to reconcile net
  loss to net cash used in
  operating activities:
  Income from discontinued operations                                   -             -      (121,130)
  Depreciation                                                      1,103         9,135        10,772
  Changes in operating assets and liabilities:
    (Increase) decrease in -
      Deposits and other current assets                               638         5,280       165,762
    Increase (decrease) in -
      Other payable and accrued expenses                          (17,578)     (145,537)      121,536
      Amount due to affiliates                                          -             -     1,252,098
                                                              ----------------------------------------

Net cash (used in) provided by
  operating activities                                           (107,198)     (887,523)       78,884
                                                              ----------------------------------------

Financing activities:
  Increase in due to related parties                              102,656       849,920             -
                                                              ----------------------------------------

Net cash provided by financing activities                         102,656       849,920             -
                                                              ----------------------------------------

Effect of exchange rate on cash                                         -             -        30,607
                                                              ----------------------------------------

(Decrease) increase in cash                                        (4,542)      (37,603)      109,491

Cash, beginning                                                     9,673        80,085        48,169
                                                              ----------------------------------------

Cash, ending                                                  $     5,131        42,482       157,660
                                                              ========================================
See notes to consolidated financial statements.
</TABLE>


<PAGE>
CHINA GATEWAY HOLDINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 2001 AND 2000

1.   ORGANIZATION  AND  BASIC  PRESENTATION

Basic  of  Presentation  -  The  accompanying  consolidated financial statements
include  the  operations of China Gateway Holdings Inc. and its wholly-owned and
majority-owned  subsidiaries (the "Company"). All material intercompany balances
and  transactions  are  eliminated  on consolidation. The consolidated financial
statements  have  been prepared in accordance with generally accepted accounting
principles  in  the  United  States  and have been presented in Chinese Renminbi
("RMB").

Foreign  Currency  Translation  -  The  functional  currency  of  the  Company's
operations  in  the People's Republic of China ("PRC") is the RMB.  The accounts
of  foreign  operations are prepared in their local currency and translated into
RMB  using  the  applicable  rate  of  exchange.  The  resulting  translation
adjustments  are  included  in  comprehensive  income  (loss).  Transactions
denominated  in  currencies  other  than  the RMB are translated into RMB at the
applicable exchange rates.  Monetary assets and liabilities denominated in other
currencies  are  translated  into  RMB at the applicable rate of exchange at the
balance  sheet  date.  The  resulting  exchange  gains or losses are credited or
charged  to  the  consolidated  statement  of  operations.

The  company's share capital is denominated in USD and the reporting currency is
the  RMB.

Translation  of  amounts from RMB into the USD for the convenience of the reader
has  been  made  at the exchange rate as quoted by the People's Bank of China at
June  30,  2001  of  US$1.00  = RMB8.30.  No representation is made that the RMB
amounts  could  have  been,  or could be, converted into USD at that rate or any
other  certain  rate.

Business  -  On June 30, 2001, the Company and The Glory Famous (Groups) Limited
terminated  their  Acquisition  Agreement  dated  as  of  April  25, 2001, which
provided for the Company's intention to engage in the business of coal mining in
the  Shangdong  Province  of  the  People's  Republic  of  China.

Comments - The accompanying consolidated financial statements are unaudited, but
in  the  opinion  of  management  of the Company, contain all adjustments, which
include  normal recurring adjustments, necessary to present fairly the financial
position  at  June  30,  2001,  the  results of operations for the three and six
months ended June 30, 2001 and 2000, and the cash flows for the six months ended
June  30,  2001 and 2000. The consolidated balance sheet as of December 31, 2000
is  derived  from  the  Company's  audited  financial  statements.

Certain  information  and  footnote  disclosures  normally included in financial
statements  that  have  been  prepared  in  accordance  with  generally accepted
accounting  principles  have been condensed or omitted pursuant to the rules and
regulations  of  the  United States Securities and Exchange Commission, although
management  of  the  Company  believes  that  the disclosures contained in these


<PAGE>
financial  statements are adequate to make the information presented therein not
misleading.  For  further  information,  refer  to  the  consolidated  financial
statements  and  notes  thereto  included  in  the  Company's  Annual  Report on
Form10-KSB  for  the  fiscal  year  ended  December  31, 2000, as filed with the
Securities  and  Exchange  Commission.

The  preparation  of  financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect  the reported amounts of assets and liabilities, disclosure of contingent
assets and liabilities at the date of the financial statements, and the reported
amounts  of revenues and expenses during the reporting periods. Management makes
these  estimates  using the best information available at the time the estimates
are  made; however, actual results could differ materially from those estimates.

The  results  of  operations  for  the  six  months  ended June 30, 2001 are not
necessarily  indicative of the results of operations to be expected for the full
fiscal  year  ending  December  31,  2001.

2.   INCOME  TAXES

The  Company  did  not  recognize  any  income taxes for the three and six month
periods  ended  June 30, 2001 and 2000 as it incurred losses in each period. The
Company  is  subject  to income taxes on an entity basis on income arising in or
derived  from  the  tax  jurisdiction  in  which  each  entity is domiciled. The
Company's  British  Virgin Islands subsidiaries are not liable for income taxes.

3.   EARNINGS  PER  SHARE

Basic earnings per share is based on the weighted average shares of common stock
outstanding.  Diluted  earnings  per  share  assumes the conversion, exercise or
issuance of all potential common stock instruments such as options, warrants and
convertible  securities,  unless  the  effect  is  to  reduce  loss per share or
increase  earnings  per  share.

Basic  and  diluted  weighted average common shares outstanding during the three
and  six  month  periods  ended  June  30,  2001  and  2000  were  4,307,158.

4.   RELATED  PARTY  TRANSACTIONS

During the six months ended June 30, 2001, certain shareholders made advances to
the  Company  totaling  RMB  849,920.  The  advances are unsecured, non interest
bearing  and  are  payable  on  demand.

During  the six months ended June 30, 2001, the Company earned service income of
RMB  51,075  from  affiliated  companies.


<PAGE>
ITEM 2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATION

FORWARD-LOOKING  STATEMENTS.  This  quarterly  report  contains  certain
forward-looking  statements  within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as  amended,  that involve risks and uncertainties. In addition, the Company may
from  time  to  time  make  oral  forward-looking statements. Actual results are
uncertain  and may be impacted by many factors. In particular, certain risks and
uncertainties  that  may  impact  the accuracy of the forward-looking statements
with  respect  to  revenues,  expenses  and  operating  results  include without
limitation;  cycles  of  customer  orders,  general  economic  and  competitive
conditions  and  changing customer trends, technological advances and the number
and  timing  of  new product introductions, shipments of products and components
from foreign suppliers, and changes in the mix of products ordered by customers.
As  a  result,  the actual results may differ materially from those projected in
the  forward-looking  statements.

Because  of  these  and  other  factors  that may affect the Company's operating
results,  past  financial  performance  should not be considered an indicator of
future performance, and investors should not use historical trends to anticipate
results  or  trends  in  future  periods.

The  following  discussion  and analysis provides certain information, which the
Company's  management believes is relevant to an assessment and understanding of
the  Company's  results of operations and financial condition for the six months
ended  June  30,  2001  and 2000. This discussion and analysis should be read in
conjunction  with  the  Company's  financial  statements  and related footnotes.

OVERVIEW:

China  Gateway  Holdings  Inc.,  formerly  Orient  Packaging  Holdings Ltd. (the
"Company"),  was  incorporated  in  the  State  of  Delaware  on  June 26, 1997.
Effective  June 27, 1997, the Company issued 2,310,000 shares of common stock to
the shareholders of Orient Investments Limited, a British Virgin Islands company
incorporated  on  January 9, 1997 ("Orient Investment"), in exchange for 100% of
the  capital stock of Orient Investment. Orient Investment owned a 100% interest
in  Orient Packaging Limited ("Orient Packaging"), which was incorporated in the
British  Virgin Islands on May 25, 1993, originally as Orient Financial Services
Limited.

In  accordance  with  an  agreement between Orient Packaging and Wuhan Dong Feng
Paper  Mill Company, a Peoples' Republic of China state-owned enterprise Company
dated  December  20,  1996  (the "Joint Venture Agreement"), a Joint Venture was
established  with  a  term  of  30  years from the date the business license was
issued to engage in the manufacture and sale of cartonboard packaging materials.
The  Joint Venture produced primarily coated and uncoated white-lined chipboard,
which  were  the most common types of cartonboard used in consumer packaging for
beverages,  dry  foodstuffs,  pharmaceutical  products and other consumer items.

On March 20, 2001, after continuous negotiations with Wuhan Dong Feng Paper Mill
Company,  its  Joint Venture partner in China, the Company entered into a formal
Termination  Agreement  with  them  in accordance with Article 68(2) and Article


<PAGE>
68(5)  of  the  Joint  Venture's  Articles  of  Association  and  other relevant
provisions  in  the Joint Venture Agreement. In accordance with said Termination
Agreement,  each  of  the  partners in the Joint Venture agreed not to pursue or
make  claims  against the other for any damages, compensation or liabilities. On
April 9, 2001, the Company received a formal legal opinion from China Law Office
in  Hong  Kong, as to the validity of the termination and the mutual releases in
the  March  20th,  2001 Joint Venture Termination Agreement. China Law Office is
the  sole  foreign Law firm in Hong Kong to practice the laws and regulations of
the  Peoples  Republic  of  China,  with the approval of the Peoples Republic of
China's  Ministry  of  Justice.

With the termination of the Joint Venture, the Company has no operations at this
time.


<PAGE>
Consolidated  Results  of  Operations:

Three Months Ended June 30, 2001 and 2000:

Administrative  and  General Expenses. For the three months ended June 30, 2001,
administrative  and  general  expenses  were  RMB  194,973,  as  compared  to
administrative  and  general  expenses of RMB 626,587 for the three months ended
June  30,  2000.  The  decrease  is  primarily  due  to  the decreased legal and
professional  fees.

Other  Income  (Expense).     The  Company  had  interest  income  of RMB 14 and
service  income  of  RMB 4,971 from affiliated companies during the three months
ended  June  30, 2001. The Company had interest income of RMB 840 and no service
income  during  the  three  months  ended  June  30,  2000.

Income  Taxes.  The  Company  did  not  recognize any income taxes for the three
months  ended  June  30, 2001 and 2000 as it incurred losses in each period. The
Company  is  subject  to income taxes on an entity basis on income arising in or
derived  from  the  tax  jurisdiction  in  which  each  entity is domiciled. The
Company's  British  Virgin Islands subsidiaries are not liable for income taxes.

Discontinued  Operation.     Loss  from  discontinued  operations  of  the Joint
Venture  were  RMB  1,888,723  for  the  three  months  ended  June  30,  2000.

Net  Income/Loss  from Operations. Net loss was RMB 189,988 for the three months
ended  June  30,  2001, as compared to a net loss of RMB 2,514,470 for the three
months  ended June 30, 2000. Loss from continuing operations was RMB 189,988 and
625,747  for  the  three months ended June 30, 2001 and 2000, respectively. Loss
from  discontinued  operations was RMB 1,888,723 for the three months ended June
30,  2001.  Net  loss  per  share was RMB 0.04 and RMB 0.58 for the three months
ended June 30, 2001 and 2000. For the three months ended June 30, 2001 and 2000,
loss  per  share  from  continuing operations was RMB 0.04 and RMB 0.15. For the
three  months  ended  June 30, 2000, loss per share from discontinued operations
was  RMB  0.44.

Six Months Ended June 30, 2001 and 2000:

Administrative and General Expenses.     For the six months ended June 30, 2001,
administrative  and  general  expenses  were  RMB  807,538,  as  compared  to
administrative  and  general  expenses of RMB 1,473,729 for the six months ended
June  30,  2000.  The  decrease  is  primarily  due  to  the decreased legal and
professional  fees.

Other  Income  (Expense).     The  Company  had  interest  income  of RMB 62 and
service  income  of  RMB  51,075 from affiliated companies during the six months
ended  June  30,  2001.  The  Company  had  interest income of RMB 2,445, and no
service  income  during  the  six  months  ended  June  30,  2000.

Income  Taxes. The Company did not recognize any income taxes for the six months
ended  June  30, 2001 and 2000 as it incurred losses in each period. The Company


<PAGE>
is  subject  to  income taxes on an entity basis on income arising in or derived
from  the  tax  jurisdiction  in  which  each entity is domiciled. The Company's
British  Virgin  Islands  subsidiaries  are  not  liable  for  income  taxes.

Discontinued  Operation.     Income  from  discontinued  operations of the Joint
Venture  were  RMB  121,130  for  the  six  months  ended  June  30,  2000.

Net  Income/Loss  from  Operations.  Net loss was RMB 756,401 for the six months
ended  June  30,  2001,  as  compared to a net loss of RMB 1,350,154 for the six
months  ended June 30, 2000. Loss from continuing operations was RMB 756,401 and
RMB  1,471,284  for  the  six months ended June 30, 2001 and 2000, respectively.
Income  from  discontinued  operations  was RMB 121,130 for the six months ended
June  30,  2001. Net loss per share was RMB 0.18 and RMB 0.31 for the six months
ended  June  30, 2001 and 2000. For the six months ended June 30, 2001 and 2000,
loss per share from continuing operations was RMB 0.18 and RMB 0.34. For the six
months  ended  June  30, 2000, income per share from discontinued operations was
RMB  0.03.

Consolidated Financial Condition - June 30, 2001:

Liquidity and Capital Resources:

The  Company's  financial  statements for the three and six months periods ended
June  30,  2001  have been prepared on a going concern basis, which contemplates
the  realization  of assets and the settlement of liabilities and commitments in
the  normal  course  of  business.  For  the six months-ended June 30, 2001, the
Company  reported  a  net  loss  of  RMB756,401  and,  at  June  30,  2001 has a
stockholder'  deficit  of  RMB5,635,351. The Independent Auditors' Report on the
company's  financial  statements  as of and for the year ended December 31, 2000
included  a  "going concern" explanatory paragraph which means that the auditors
expressed  substantial  doubt about the Company's ability to continue as a going
concern.  Management's  plans  to  address these concerns primarily included the
Company's March 16, 2001 entry into a letter of intent to acquire all the issued
and  outstanding  stock  of  H.K. Giantich International Groups, Limited, a Niue
corporation  with  operations in the PRC and with corporate headquarters located
in Hong Kong in exchange for 25,000,000 shares of China Gateway common stock. On
April 25, 2001 the letter of intent was formalized into an Acquisition Agreement
was  terminated.  On July 19, 2001 the company entered into a marketing advisory
agreement  whereby the Company has engaged a consultant to assist in identifying
an  alternative  industrial  partner/investor  for  the  Company.

Operating.     For  the six months ended June 30, 2001, the Company's operations
utilized cash resources of RMB 887,523, as compared to generating cash resources
of  RMB  78,884  for  the  three  months  ended  June  30,  2000.

Investing.     The  Company did not have any cash flow from investing activities
during  the  six  months  ended  June  30,  2001  and  2000.

Financing.     Certain  shareholders  made  advances to the Company totaling RMB
849,920  during  the  six  months  ended  June  30,  2001,  which are unsecured,
non-interest  bearing  and  are  payable  on  demand.

Inflation  and  Currency  Matters:

In  recent  years, the Chinese economy has experienced periods of rapid economic
growth as well as relatively high rates of inflation, which in turn has resulted
in  the  periodic  adoption  by  the  Chinese  government  of various corrective
measures  designed  to  regulate  growth  and contain inflation. Since 1993, the
Chinese  government  has  implemented  an  economic  program designed to control
inflation,  which has resulted in the tightening of working capital available to
Chinese  business enterprises. The success of the Company depends in substantial
part  on  the  continued  growth  and  development  of  the  Chinese  economy.

Foreign  operations are subject to certain risks inherent in conducting business
abroad,  including price and currency exchange controls, and fluctuations in the
relative  value of currencies. Changes in the relative value of currencies occur
periodically  and  may,  in  certain  instances, materially affect the Company's
results  of operations. In addition, the Renminbi is not freely convertible into
foreign  currencies,  and  the ability to convert the Renminbi is subject to the


<PAGE>
availability  of  foreign  currencies.  Effective  December 1, 1998, all foreign
exchange  transactions involving the Renminbi must take place through authorized
banks  in  China at the prevailing exchange rates quoted by the People's Bank of
China.  The  Company  expects  that  a  portion  of its revenues will need to be
converted  into  other currencies to meet foreign exchange currency obligations,
including  the  payment  of  any  dividends  declared.

Although  the  central government of China has repeatedly indicated that it does
not  intend  to devalue its currency in the near future, recent announcements by
the  central  government  of  China  indicate  that devaluation is an increasing
possibility.  Should  the  central  government  of  China  decide to devalue the
Renminbi,  the  Company  does  not  believe  that  such  an  action would have a
detrimental  effect  on  the  Company's  operations,  since the Company conducts
virtually  all of its business in China, and the sale of its products is settled
in  Renminbi.  However,  devaluation  of  the Renminbi against the United States
dollar  would adversely affect the Company's financial performance when measured
in  United  States  dollars.


<PAGE>
                           PART II. OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

     (a)  Exhibits:

     (b)  Reports  on  Form  8-K:

     During  and  subsequent  to the six months ended June 30, 2001, the Company
     filed  the  following  reports  on  Form  8-K:


     Form    Filing  Date          Event  Reported
     ----    ------------          ---------------
     8-K     April 25, 2001        A  report  on  Form  8-K  (item  5),  which
                                   announced  the  Company  reached a formalized
                                   Acquisition  Agreement  with the Glory Famous
                                   (Groups) Limited for engaging in the business
                                   of  coal  mining in the Shangdong Province of
                                   the  People's  Republic  of  China.

     8-K     May 25, 2001          A  report  on  Form  8-K  (item  5),  which
                                   announced  the  Company's principal executive
                                   office  was  relocated.

     8-K     July 13, 2001         A  report  on  Form  8-K  (item  5),  which
                                   announced  the  Company  and The Glory famous
                                   (Groups) Limited terminated their Acquisition
                                   Agreement  dated  as  of  April 25, 2001, and
                                   stated  that the Company decided to terminate
                                   the  services  of  its  transfer  agent, U.S.
                                   Stock  Transfer  Corp.,  and appointed Nevada
                                   Agency  &  Trust  Company as the new transfer
                                   agent.



<PAGE>
                                   SIGNATURES


In  accordance  with the requirements of the Exchange Act, the registrant caused
this  report  to  be  signed  on  its  behalf by the undersigned, thereunto duly
authorized.


                                               CHINA  GATEWAY  HOLDINGS  INC.
                                               ---------------------------------
                                               (Registrant)





Date:  August 20, 2001                         By: /s/ DANNY WU
                                               ---------------------------------
                                               Danny  Wu
                                               Chief  Executive Officer
                                              (Duly Authorized Officer)




Date:  August 20, 2001                         By: /s/ CARL YUEN
                                               ---------------------------------
                                               Carl  Yuen
                                               Account  and  Finance
                                               Manager
                                               (Principal  Financial
                                               and  Accounting  Officer)


<PAGE>