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,  2000

[ ]     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)

             CLI Building, 313 Hennessy Road, Suite 1003, Hong Kong
             ------------------------------------------------------
                    (Address of principal executive offices)

                                  852-2893-9676
                           --------------------------
                           (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, 2000, 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.


                                        1
<PAGE>
                           CHINA GATEWAY HOLDINGS INC.

                                      INDEX


PART  I.   FINANCIAL  INFORMATION

     Item  1. Financial  Statements

              Consolidated  Balance  Sheet  (Unaudited)  -  June  30,
              2000

              Consolidated  Statements  of  Operations  and
              Comprehensive  Income  (Loss)  (Unaudited)  -  Three
              Months  and  Six  Months  Ended  June  30,  2000  and  1999

              Consolidated  Statements  of  Cash  Flows  (Unaudited)  -
              Six  Months  Ended  June  30,  2000  and  1999

              Notes  to  Consolidated  Financial  Statements
              (Unaudited)  -  Six  Months  Ended  June  30,  2000  and
              1999

     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


                                        2
<PAGE>
<TABLE>
<CAPTION>
                    China Gateway Holdings Inc.
              Consolidated Balance Sheet (Unaudited)

                                           June 30, 2000
                                     -----------------------
                                           USD         RMB
<S>                                 <C>          <C>
ASSETS
Current assets:
  Cash and cash equivalents             22,071       183,187
  Receivables
    Trade, net                       2,769,929    22,990,410
    Affiliates                         225,828     1,874,372
    Employees                           66,809       554,516
    Other                              196,394     1,630,071
  Inventories (Note 2)                 705,033     5,851,778
  Prepaid expenses and other           101,039       838,621
  Amounts due from Joint Venturer    1,213,541    10,072,390
                                     ---------    ----------
  Total current assets               5,300,644    43,995,345
                                     ---------    ----------

Property, plant and equipment, net     673,845     5,592,912

Construction in progress                11,742        97,461
                                     ---------    ----------
  Total assets                       5,986,231    49,685,718
                                     =========    ==========


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Accounts payable                   1,283,330    10,651,640
  Other payables and accruals          503,990     4,183,117
  Amounts due to related parties       244,750     2,031,420
  Taxes payable                        804,716     6,679,143
                                     ---------    ----------
  Total current liabilities          2,836,786    23,545,320
                                     ---------    ----------

Minority interest                    1,268,013    10,524,512


Shareholders' equity:
  Common stock, par value
    US$0.0001 per share;
    authorized - 50,000,000
    shares; issued and
    outstanding - 4,307,158
    shares at June 30, 2000                430         3,568
  Capital in excess of par           5,051,238    41,925,274
  Deficit                           (3,246,374)  (26,944,907)
  General reserve                       76,677       636,421
  Accumulated other
    comprehensive income                  (539)       (4,470)
                                     ---------    ----------
  Total shareholders' equity         1,881,432    15,615,886
                                     ---------    ----------
  Total liabilities and
    shareholders' equity             5,986,231    49,685,718
                                     =========    ==========
</TABLE>

          See accompanying notes to consolidated financial statements.


                                        3
<PAGE>
<TABLE>
<CAPTION>
                           China Gateway Holdings Inc.
                    Consolidated Statements of Operations and
                     Comprehensive (Income) Loss (Unaudited)


                                              Three  Months  Ended  June  30,
                                           -----------------------------------
                                             2000        2000         1999
                                           ---------   ----------   ----------
                                              USD         RMB          RMB
                                                                    (Restated  -
                                                                      Note  1)
<S>                                       <C>         <C>          <C>
Net sales                                  2,587,024   21,472,297

Cost of sales                              2,461,496   20,430,416
                                           ---------   ----------   ----------
Gross profit                                 125,528    1,041,881

Administrative and general expenses          497,174    4,126,542      201,109
Selling expenses                              38,940      323,206
                                           ---------   ----------   ----------
Loss from operations                        (410,586)  (3,407,867)    (201,109)

Other income (expense):
  Interest income                                101          840
  Other                                       11,758       97,594
                                           ---------   ----------    ---------
Loss before equity in loss of joint
  venture                                   (398,727)  (3,309,433)    (201,109)

Equity in loss of joint venture
  (Notes 1 and 6)                                                   (1,192,586)
                                           ---------   ----------    ---------
Loss before minority interest               (398,727)  (3,309,433)  (1,393,695)

Minority interest (Note 1)                    95,779      794,963
                                           ---------   ----------    ---------
Net loss                                    (302,948)  (2,514,470)  (1,393,695)

Other comprehensive income:
  Foreign currency translation adjustment      1,334       11,072
                                           ---------   ----------    ---------
Comprehensive loss                          (301,614)  (2,503,398)  (1,393,695)
                                           =========   ==========    =========

Net loss per common share - Basic and
  Diluted (Note 1)                             (0.07)       (0.58)       (0.34)
                                           =========   ==========    =========


Weighted average number of common shares
  outstanding                              4,307,158    4,307,158    4,154,158
                                           =========    =========    =========
</TABLE>

          See accompanying notes to consolidated financial statements.


                                        4
<PAGE>
<TABLE>
<CAPTION>
                           China Gateway Holdings Inc.
                    Consolidated Statements of Operations and
                     Comprehensive Income (Loss) (Unaudited)


                                                Six Months Ended June 30,
                                           -----------------------------------
                                             2000        2000         1999
                                           ---------   ----------   ----------
                                           USD         RMB          RMB
                                                                   (Restated -
                                                                    Note 1)
<S>                                        <C>        <C>          <C>
Net sales                                  3,832,622   31,810,761

Cost of sales                              3,409,315   28,297,309
                                           ---------   ----------   ----------
Gross profit                                 423,307    3,513,452

Administrative and general expenses        1,169,682    9,708,363    1,125,798
Selling expenses                              69,244      574,730
                                           ---------   ----------   ----------
Loss from operations                        (815,619)  (6,769,641)  (1,125,798)

Other income (expense):
  Interest income                                295        2,445
  Interest expense                            (7,668)     (63,644)
  Commission income (Note 4)                 450,000    3,735,000
  Other                                       25,455      211,280
                                           ---------   ----------    ---------
Loss before equity in loss of joint
  venture                                   (347,537)  (2,884,560)  (1,125,798)

Equity in loss of joint venture
  (Note 1 and 6)                                                    (4,293,053)
                                           ---------   ----------    ---------
Loss before minority interest               (347,537)  (2,884,560)  (5,418,851)

Minority interest (Note 1)                   184,868    1,534,406
                                           ---------   ----------    ---------
Net loss                                    (162,669)  (1,350,154)  (5,418,851)

Other comprehensive income:
  Foreign currency translation adjustment      1,575       13,069
                                           ---------   ----------    ---------
Comprehensive loss                          (161,094)  (1,337,085)  (5,418,851)
                                           =========   ==========    =========

Net loss per common share - Basic and
    Diluted (Note 1)                           (0.04)       (0.31)       (1.30)
                                           =========   ==========    =========


Weighted average number of common shares
  outstanding                              4,307,158    4,307,158    4,154,159
                                           =========    =========    =========
</TABLE>

          See accompanying notes to consolidated financial statements.


                                        5
<PAGE>
<TABLE>
<CAPTION>
                           China Gateway Holdings Inc.
                Consolidated Statements of Cash Flows (Unaudited)


                                                Six Months Ended June 30,
                                           -----------------------------------
                                             2000        2000         1999
                                           ---------   ----------   ----------
                                              USD         RMB          RMB
                                                                    (Restated -
                                                                        Note 1
Operating activities:
<S>                                        <C>        <C>           <C>
Net loss                                    (162,669)  (1,350,154)  (5,418,851)
Adjustments to reconcile net loss
  to net cash used in operating
  activities:
  Depreciation                                28,867      239,600
  Equity in loss of joint venture                                    4,293,053
  Minority interest                         (184,868)  (1,534,406)
  Changes in operating assets and
    liabilities:
    (Increase) decrease in -
      Trade receivables, net                 (88,866)    (737,588)
      Amounts due from affiliates            302,771    2,513,002
      Other receivables, deposits and
        prepayments                          (38,068)    (315,966)    (272,065)
      Inventories                            411,420    3,414,790
    Increase (decrease) in -
      Accounts payable                      (568,555)  (4,719,009)     251,788
      Other payables and accruals             90,587      751,868      347,931
      Amounts due to related parties         150,855    1,252,098      370,604
      Taxes payable                           11,725       97,316
                                           ---------   ----------   ----------
  Net cash used in operating
    activities                               (46,801)    (388,449)    (427,540)
                                           ---------   ----------   ----------
Investing activities:
  Additions to property, plant and
    equipment                                                          (68,542)
                                           ---------   ----------   ----------
  Net cash used in investing
    Activities                                                         (68,542)
                                           ---------   ----------   ----------
Financing activities:
  Decrease in amounts due from
    Joint Venturer                            47,020      390,269
                                           ---------   ----------   ----------
  Net cash provided by financing
    activities                                47,020      390,269
                                           ---------   ----------   ----------
Cash and cash equivalents:
  Net increase (decrease)                        219        1,820     (496,082)
  Effect of exchange rates changes on cash     1,575       13,068          642
  At beginning of period                      20,277      168,299      590,849
                                           ---------   ----------   ----------
  At end of period                            22,071      183,187       95,409
                                           =========   ==========   ==========
</TABLE>

          See  accompanying  notes  to  consolidated  financial  statements.


                                        6
<PAGE>
                           China Gateway Holdings Inc.
             Notes to Consolidated Financial Statements (Unaudited)
                     Six Months Ended June 30, 2000 and 1999

1.     Organization  and  Basis  of  Presentation

Organization  -  The  accompanying consolidated financial statements include the
operations  of  China  Gateway  Holdings Inc. and its wholly-owned subsidiaries,
Orient  Investments  Limited  and  Orient  Packaging  Limited.

On  December 20, 1996, Orient Packaging Limited entered into a 30 year agreement
(the  "Joint Venture Agreement") with Wuhan Dong Feng Paper Mill Company to form
Wuhan  Dong Feng Paper Company Limited ("Wuhan Limited" or the "Joint Venture").
The  Company, through Orient Packaging Limited, owns a 60% interest in the Joint
Venture  and  Wuhan Dong Feng Paper Mill Company (the "Joint Venturer") owns the
remaining  40%  interest  in  the  Joint  Venture.  The  Joint Venture commenced
operations  March  1,  1997.

The  Joint Venture's facilities and operations are located in the city of Wuhan,
Hubei  Province, People's Republic of China ("China" or the "PRC").  Pursuant to
the  Joint  Venture  Agreement,  Wuhan  Limited  was  formed  to  engage  in the
manufacture  and  sales  of  cartonboard  packaging materials, primarily used in
consumer  product  packaging  for  items  such  as  beverages,  dry  foodstuffs,
pharmaceutical  products  and other consumer items.  The Company's customers are
concentrated  in  the  PRC.

China  Gateway  Holdings  Inc.,  Orient  Investments  Limited,  Orient Packaging
Limited  and Wuhan Limited are collectively referred to herein as the "Company".

Basis  of  Presentation  and Restatement - 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").  All
significant  intercompany  balances  and  transactions  have  been eliminated in
consolidation.

Since  inception,  the  Company  has accounted for its 60% interest in the Joint
Venture,  which  is  similar  to  a majority-owned subsidiary, as a consolidated
subsidiary.  During  the  six months ended June 30, 2000, the Company determined
that  the  Joint  Venturer  had  retained certain rights under the Joint Venture
Agreement  that  provided  the Joint Venturer with the ability to participate in
management, although such rights have never been asserted by the Joint Venturer.
Under  Emerging  Issues Task Force Issue No.  96-16, if a minority joint venture
partner  has  such  rights,  the  majority  joint venture partner is required to
account  for  its  interest  in  the  joint  venture  under the equity method of
accounting.


                                        7
<PAGE>
During  the  six  months  ended  June  30, 2000, the Joint Venture Agreement was
amended  to  clearly  express  the intent of the parties that the Company is the
controlling  party  in  the Joint Venture.  As a result, the Company's financial
statements  through December 31, 1999 have been restated to report the Company's
investment in the Joint Venture under the equity method of accounting.  However,
because  the  Joint  Venture  Agreement  was amended during 2000, the Company is
reporting  its  investment  in  the  Joint  Venture as a consolidated subsidiary
commencing  January  1, 2000.  There was no effect on net loss or loss per share
amounts  for  the three months and six months ended June 30, 1999 as a result of
the restatement.

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,  2000  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.

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, 2000, the results of operations for the three months and
six  months  ended June 30, 2000 and 1999, and the cash flows for the six months
ended  June  30,  2000  and  1999.

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
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 Form
10-KSB for the fiscal year ended December 31, 1999, as filed with the Securities
and  Exchange  Commission.


                                        8
<PAGE>
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 three months and six months ended June 30,
2000  are not necessarily indicative of the results of operations to be expected
for  the  full  fiscal  year  ending  December  31,  2000.

Income  (Loss)  Per  Share - Basic earnings per share are calculated by dividing
net  income  (loss)  by the weighted average number of common shares outstanding
during the period.  Diluted earnings per share reflects the conversion, exercise
or  issuance  of  all  potential common stock equivalents such as stock options,
warrants  and  convertible  securities,  if  dilutive.  As  of  June  30,  2000,
potentially  dilutive  securities  consisted  of outstanding warrants to acquire
482,221  shares  of common stock exercisable at $0.10 per share (246,905 shares)
and  $2.75  per  share  (235,316  shares).  The  potentially dilutive securities
were  not  included in the calulation of loss per share for the three months and
six  months ended June 30, 2000 and 1999 because their effect would have been to
decrease the loss per share.


2.     Inventories

Inventories  consisted  of the following at June 30, 2000:


                     USD          RMB

Raw materials      251,146     2,084,513
Finished goods     453,887     3,767,265
                   -------     ---------
                   705,033     5,851,778
                   =======     =========


                                        9
<PAGE>
3.     Income  Taxes

The  Company  did  not  recognize  any income taxes for the three months and six
months  ended June 30, 2000 and 1999.  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.  PRC  entities are generally
subject  to  income  taxes  at an effect rate of 33%.  For the light industry or
packaging  industry in which Wuhan Limited is engaged, income tax rates are at a
preferential  rate  of  27%.  Furthermore,  newly established joint ventures are
exempt  from  income  tax in the first two years starting from the first year of
profitable  operations,  as  well as being allowed a 50% reduction in tax in the
third,  fourth  and  fifth  years  of profitable operations.  Losses incurred by
joint  ventures  may  be  carried  forward  for  five  years.

4.  Commission  Income

During  the  three  months ended March 31, 2000, the Company recorded commission
income of RMB 3,735,000 relating to agency services that the Company provides to
an unrelated third party.  The Company did not have any commission income during
the  six  months  ended  June 30, 1999  or the three months ended June 30, 2000.
The  commission  agreement provides that the Company will receive commissions of
10%  of  specified  invoices arising from the Company's efforts through December
31,  2000.

5.  Segment  and  Geographic  Information;  Major  Customers

The  Company's  customers  are concentrated in the PRC.  Sales to such customers
are  generally  on an open account basis and are denominated in RMB.  During the
three  months  and  six  months ended June 30, 2000, the Company's revenues were
generated  through  its  interest  in  Wuhan  Limited, which supplies paperboard
directly or indirectly to major international consumer brands.  During the three
months  and  six  months  ended  June 30, 2000, approximately 17% and 18% of the
Company's  net  sales  were  generated by one customer, respectively.  One other
customer  accounted for over 10% of sales during the three months and six months
ended  June  30,  2000.  During  such  periods, the Company also had significant
purchases  of  raw  material  inventory  from  the  same  customer.


                                       10
<PAGE>
6.  Condensed  1999  Financial  Information  of  the  Joint  Venture

During  the  three months and six months, the Joint Venture was accounted for as
unconsolidated  subsidiary  (Note  1).  The  condensed  unaudited  results  of
operations  of  the Joint Venture for the three months and six months ended June
30,  1999  are  as  follows:


                         Three Months Ended      Six Months Ended
                          June  30,  1999         June  30,  1999
                       --------------------     ------------------
                               RMB                     RMB

Net sales                   16,223,378              26,131,902

Cost of sales               13,471,196              23,425,215
                            ----------              ----------
Gross profit                 2,752,182               2,706,687

Operating and
  financing expenses         4,739,825               9,861,775
                            ----------              ----------
Net loss                    (1,987,643)             (7,155,088)
                            ==========              ==========
The Company's
  proportionate share
  of net loss of the
  Joint Venture             (1,192,586)             (4,293,053)
                            ==========              ==========


                                       11
<PAGE>
ITEM  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATION

Cautionary  Statement  Pursuant  to  Safe  Harbor  Provisions  of  the  Private
Securities  Litigation  Reform  Act  of  1995:

This  Quarterly  Report  on  Form 10-QSB for the quarterly period ended June 30,
2000  contains  "forward-looking"  statements  within the meaning of the Federal
securities  laws.  These  forward-looking  statements  include,  among  others,
statements  concerning  the Company's expectations regarding sales trends, gross
and  net  operating  margin  trends,  political  and  economic  matters,  the
availability  of  equity capital to fund the Company's capital requirements, and
other  statements  of  expectations,  beliefs,  future  plans  and  strategies,
anticipated  events  or  trends, and similar expressions concerning matters that
are  not  historical  facts.  The  forward-looking  statements in this Quarterly
Report  on  Form 10-QSB for the quarterly period ended June 30, 2000 are subject
to  risks and uncertainties that could cause actual results to differ materially
from  those  results expressed in or implied by the statements contained herein.

Overview:

China  Gateway  Holdings  Inc.,  formerly Orient Packaging Holdings Limited (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 ("OIL"), in exchange for 100% of the capital
stock  of  OIL.  OIL  owned a 100% interest in Orient Packaging Limited ("OPL"),
which was incorporated in the British Virgin Islands on May 25, 1993, originally
as  Orient  Financial  Services Limited.  OPL owned a 60% interest in Wuhan Dong
Feng Paper Company Limited, a Sino-foreign equity joint venture ("Wuhan Limited"
or  the  "Joint Venture"), with the remaining 40% owned by Wuhan Dong Feng Paper
Mill  Company,  a  PRC  state-owned  enterprise  ("Wuhan  Company" or the "Joint
Venturer").

In accordance with an agreement between OPL and Wuhan Company dated December 20,
1996  (the  "Joint Venture Agreement"), the Joint Venture was established with a
term  of  30 years from the date the business license is issued to engage in the
manufacture  and  sale  of  cartonboard  packaging materials.  The Joint Venture
produces primarily coated and uncoated white-lined chipboard, which are the most
common  types  of  cartonboard  used  in  consumer  packaging for beverages, dry
foodstuffs,  pharmaceutical  products  and  other  consumer  items.  The  Joint
Venture's production facilities and operations are located in the city of Wuhan,
Hubei  Province,  PRC.  The  Company  had no significant operations prior to the
commencement  of  the  Joint  Venture's  operations  effective  March  1,  1997.


                                       12
<PAGE>
Through  December  31,  1997, OPL had contributed cash of RMB 4,876,893 to Wuhan
Limited,  and  Wuhan  Company had contributed a building and machinery, accounts
receivable  and  inventory, net of certain liabilities, with a carrying value of
RMB  7,102,039,  which  approximated  fair  value at the date of contribution to
Wuhan Limited.  During the year ended December 31, 1998, OPL contributed cash of
RMB  5,752,718  to Wuhan Limited.  All initial capital contributions required by
the  Joint  Venture  Agreement  had  been  completed  as  of  December 31, 1998.

Pursuant to an amendment to the Joint Venture Agreement dated February 26, 1998,
the  parties  to  the  Joint  Venture  Agreement agreed to expand its registered
capital  in  order to facilitate the expansion of the Joint Venture by March 31,
1999.  OPL  agreed  to contribute additional cash of RMB 34,362,000 to the Joint
Venture, consisting of RMB 20,000,000 by December 31, 1998 and RMB 14,362,000 by
March  31,  1999, and Wuhan Company agreed to contribute machinery and equipment
with  a  total value of RMB 22,908,000.  The funds to be contributed by OPL were
intended to support growth and expansion.  OPL did not fund its required capital
contributions  during  1998  and  1999.

In  January  2000, a new timetable was agreed upon whereby OPL was to contribute
RMB 5,000,000 by June 30, 2000, another RMB 5,000,000 by September 30, 2000, and
RMB 10,000,000 by December 31, 2000.  No fixed timetable was established for the
remaining  contributions  but  they  were  expected  to  be  funded based on the
proceeds  available  from  anticipated capital raising transactions. The parties
agreed  to delay the discussion of a timetable for any contributions that may be
made  after  December  31,  2000  until  an  unspecified  later  date.

The  Company  did not meet its June 30, 2000 funding obligation of RMB 5,000,000
to  the Joint Venture, and the Company is currently unable to predict if it will
be  able  to  meet its funding obligations to the Joint Venture.  The Company is
engaged  in continuing discussions with the Joint Venturer regarding its funding
obligations.

To  date,  there  have  been  no  adverse  consequences  to not contributing the
additional  RMB  34,362,000  to  the Joint Venture other than delays incurred to
modernize  the  equipment  in  the  plant.  However,  management  is  currently
unable to predict the results of the ongoing discussions with the Joint Venturer
or  if  there  will be any adverse future consequences relating to the Company's
failure to meet its funding obligations.


                                       13
<PAGE>
Pursuant  to  an  amendment to the Joint Venture Agreement dated April 19, 1999,
certain  assets  and  liabilities  related  to  Wuhan  Company  aggregating  RMB
26,112,048  were extinguished, consisting of amounts due to Wuhan Company of RMB
32,122,132,  less  amounts  due  from  Wuhan  Company of RMB 6,010,084, and were
reflected  as  a contribution of capital to the Joint Venture effective December
31,  1998.  The  amounts  due  to  Wuhan  Company  that  were forgiven reflected
unrecoverable  charges  to the Joint Venture for raw material inventory, as well
as  general  and  administrative  expenses, financing expenses and certain other
expenses.  Based  on the agreement by Wuhan Company to forgive such amounts, OPL
agreed  to contribute sufficient capital to the Joint Venture as may be required
to  fund  its  operations at current levels.  Effective December 31, 1999, Wuhan
Company agreed to forgive an additional RMB 16,329,758 of amounts due it for raw
material  inventory  and  general  and  administrative expenses, which were also
reflected  as  a  contribution  of  capital  to  the  Joint  Venture.

Since  inception,  the  Company  has accounted for its 60% interest in the Joint
Venture,  which  is  similar  to  a majority-owned subsidiary, as a consolidated
subsidiary.  During  the  six months ended June 30, 2000, the Company determined
that  the  Joint  Venturer  had  retained certain rights under the Joint Venture
Agreement  that  provided  the Joint Venturer with the ability to participate in
management, although such rights have never been asserted by the Joint Venturer.
Under  Emerging  Issues Task Force Issue No.  96-16, if a minority joint venture
partner  has  such  rights,  the  majority  joint venture partner is required to
account  for  its  interest  in  the  joint  venture  under the equity method of
accounting.

During  the  six  months  ended  June  30, 2000, the Joint Venture Agreement was
amended  to  clearly  express  the intent of the parties that the Company is the
controlling  party  in  the Joint Venture.  As a result, the Company's financial
statements  through December 31, 1999 have been restated to report the Company's
investment in the Joint Venture under the equity method of accounting.  However,
because  the  Joint  Venture  Agreement  was amended during 2000, the Company is
reporting  its  investment  in  the  Joint  Venture as a consolidated subsidiary
commencing  January  1, 2000.  There was no effect on net loss or loss per share
amounts  for three months  and six months ended June 30, 1999 as a result of the
restatement.

The acquisition of OIL by the Company was accounted for as a recapitalization of
OIL, as the shareholders of OIL acquired all of the capital stock of the Company
in  a  reverse acquisition.  Accordingly, the assets and liabilities of OIL have
been  recorded  at historical cost, and the shares of common stock issued by the
Company  have  been  reflected  in  the consolidated financial statements giving
retroactive effect as if the Company had been the parent company from inception.
The  historical  consolidated  financial  statements  consist  of  the  combined
financial statements of the Company and its direct and indirect subsidiaries and
joint  venture  interests  from  the  dates  of  their  respective  formation or
acquisition.


                                       14
<PAGE>
Effective  October 4, 1999, the Company entered into an agreement (the "Purchase
Agreement")  to  acquire  100%  of  the  outstanding capital stock of Gamma Link
Enterprises  Corp.,  a British Virgin Islands company ("Gamma"), in exchange for
3,600,000  shares  of  the  Company's common stock valued at RMB 44,712,000 (RMB
12.42  per  share).  Gamma  owns  a  51%  equity interest in Sino-Panel (Gaoyao)
Limited,  a Sino-foreign equity joint venture ("Sino-Panel"), with the remaining
49%  owned  by  an  unrelated  company.  Sino-Panel's only assets consisted of a
particle  panel  production  line  consisting  of  reconditioned  wood  particle
grinding  equipment,  multi-layer  presses,  and  other  ancillary equipment and
facilities  that  were  originally  manufactured  and operated in Finland.  Such
equipment  had  not  been employed in revenue-generating operations for the past
several  years.  The  closing  of  the  Purchase  Agreement  was  subject to the
satisfactory  completion of certain conditions by Gamma.  During May 2000, Gamma
notified  the  Company  that  it  could not accomplish certain of the conditions
required to complete the proposed transaction, and the parties to this agreement
thereupon  mutually  agreed  to  terminate  it.

The  Company's  customers  are concentrated in the PRC.  Sales to such customers
are  generally  on an open account basis and are denominated in RMB.  During the
three  months  and  six  months ended June 30, 2000, the Company's revenues were
generated  through  its  interest  in  Wuhan  Limited, which supplies paperboard
directly or indirectly to major international consumer brands.  During the three
months  and  six  months  ended  June 30, 2000, approximately 17% and 18% of the
Company's  net  sales  were  generated by one customer, respectively.  One other
customer  accounted  for  over 10% of sales during the six months ended June 30,
2000.  During  such  periods,  the Company also had significant purchases of raw
material  inventory  from  the  same  customer.

The  consolidated  financial  statements have been presented in Chinese Renminbi
("RMB").  Transactions  and monetary assets denominated in currencies other than
the  RMB  are  translated  into RMB at the respective 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
statements of operations.  Currency translation adjustments arising from the use
of  different exchange rates from period to period are included in comprehensive
income.

The  Company  is reporting its investment in the Joint Venture as a consolidated
subsidiary commencing January 1, 2000.  However, as described above, as a result
of  the  Company restating its financial statements through December 31, 1999 to
report  the Company's investment in the Joint Venture under the equity method of
accounting,  the  Company's  financial  statements  for the three months and six
months  ended  June  30,  2000  are  not  directly  comparable  to its financial
statements  for  the three months and six months ended June 30, 1999.  Condensed
results  of  operations of the Joint Venture for the three months and six months
ended  June  30,  1999 are  provided  at Note 6 of the Notes to the Consolidated
Financial Statements.

Consolidated  Results  of  Operations:


                                       15
<PAGE>
Three  Months  Ended  June  30,  2000  and  1999:

Sales.  For  the  three  months  ended June 30, 2000, sales were RMB 21,472,297.
Sales  of  the Joint Venture were RMB 16,223,378 for the three months ended June
30,  1999.  Sales  increased  by RMB 5,248,919 or 32.4% as a result of increased
market  demand  and  increased  selling  prices.

During  the  three  months ended June 30, 2000, 7,320 metric tons of cartonboard
were sold at an average per ton selling price of RMB 2,934, as compared to 5,893
metric  tons of cartonboard at an average per ton selling price of RMB 2,774 for
the  three  months  ended  June  30,  1999.

Gross  Profit.     For  the  three  months ended June 30, 2000, gross profit was
4.9%  of  sales,  as  compared to a gross profit of 17.0% of Joint Venture sales
for  the  three  months  ended June 30, 1999.  Gross margin decreased in 2000 as
compared to 1999 as  a  result  of  increased  raw  material  costs.

Administrative  and General Expenses.  For the three months ended June 30, 2000,
administrative  and  general expenses were RMB 4,126,542 or 19.2% of sales.  For
the  three  months ended June 30, 1999, administrative and general expenses were
RMB  201,109.  For  the  three  months  ended June 30, 1999, the Joint Venture's
administrative  and  general  expenses  were  RMB  3,503,485.

Selling  Expenses.  For  the  three months ended June 30, 2000, selling expenses
were  RMB  323,206  or 1.5% of sales.  For the three months ended June 30, 1999,
the Company did not incur any selling expenses.  For the three months ended June
30,  1999,  the  Joint  Venture's  selling  expenses  were  RMB  188,132 or 1.2%
of Joint Venture sales.

Loss  from  Operations.  For the three months ended June 30, 2000, the loss from
operations  was  RMB  3,407,867.  For  the three months ended June 30, 1999, the
loss from operations was RMB 201,109.  For the three months ended June 30, 1999,
the  Joint  Venture's  loss  from  operations  was  RMB  939,435.

Other  Income (Expense).  During the three months ended June 30, 1999, the Joint
Venture  incurred  costs  related  to  financing  its operations of RMB 522,974.
The  Joint Venture did not incur any similar costs during the three months ended
June  30, 2000.  Such costs decreased in 2000 as compared to 1999 primarily as a
result of a reduction in interest bearing debt to Wuhan Company, which decreased
as  a  result  of Wuhan Company forgiving RMB 16,329,758 of such debt, which was
recorded  effective  December  31,  1999,  as  described  above.


                                       16
<PAGE>
Income  Taxes.  The  Company  did  not  recognize any income taxes for the three
months  ended June 30, 2000 and 1999.  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.  PRC  entities are generally
subject  to  income  taxes  at an effect rate of 33%.  For the light industry or
packaging  industry in which Wuhan Limited is engaged, income tax rates are at a
preferential  rate  of  27%.  Furthermore,  newly established joint ventures are
exempt  from  income  tax in the first two years starting from the first year of
profitable  operations,  as  well as being allowed a 50% reduction in tax in the
third,  fourth  and  fifth  years  of profitable operations.  Losses incurred by
joint  ventures  may  be  carried  forward  for  five  years.

Equity  in Loss of Joint Venture.  For the three months ended June 30, 1999, the
Company recorded equity in loss of Joint Venture of RMB 1,192,586 to reflect the
Company's  60%  interest  in  the  Joint  Venture.

Minority  Interest.  For  the  three  months  ended  June  30, 2000, the Company
recorded  a  minority  interest of RMB 794,963 to reflect Wuhan Company's 40% in
the  Joint  Venture.

Net  Loss.  Net loss was RMB 2,514,470 for the three months ended June 30, 2000,
as  compared  to a net loss of RMB 1,393,695 for the three months ended June 30,
1999.


Six  Months  Ended  June  30,  2000  and  1999:

Sales.  For  the  six  months  ended  June  30, 2000, sales were RMB 31,810,761.
Sales of the Joint Venture were RMB 26,131,902 for the six months ended June 30,
1999.  Sales increased by RMB 5,678,859 or 21.7% as a result of increased market
demand  and  increased  selling  prices.

During  the  six  months  ended June 30, 2000, 11,060 metric tons of cartonboard
were sold at an average per ton selling price of RMB 2,850, as compared to 9,618
metric  tons of cartonboard at an average per ton selling price of RMB 2,692 for
the  six  months  ended  June  30,  1999.


                                       17
<PAGE>
Gross Profit.  For the six months ended June 30, 2000, gross profit was 11.0% of
sales, as compared to a gross profit of 10.4% of Joint Venture sales for the six
months ended June  30,  1999.

Administrative  and  General  Expenses.  For the six months ended June 30, 2000,
administrative  and  general expenses were RMB 9,708,363 or 30.5% of sales.  For
the six months ended June 30, 1999, administrative and general expenses were RMB
1,125,798.  For  the  six  months  ended  June  30,  1999,  the  Joint Venture's
administrative  and  general  expenses  were  RMB  7,702,982.

Selling Expenses.  For the six months ended June 30, 2000, selling expenses were
RMB  574,730  or  1.8%  of  sales.  For  the six months ended June 30, 1999, the
Company  did  not incur any selling expenses.  For the six months ended June 30,
1999,  the  Joint  Venture's  selling  expenses  were  RMB  414,113  or  1.6% of
Joint Venture sales.

Loss  from  Operations.  For  the  six months ended June 30, 2000, the loss from
operations  was RMB 6,769,641.  For the six months ended June 30, 1999, the loss
from  operations was RMB 1,125,798.  For the six months ended June 30, 1999, the
Joint  Venture's  loss  from  operations  was  RMB  5,410,458.

Other  Income (Expense).  During the six months ended June 30, 2000, the Company
recorded  commission  income  of  RMB  3,735,000.  The  Company did not have any
commission  income  during  the  six  months  ended  June  30,  1999.

During  the  six  months  ended  June 30, 1999, the Joint Venture incurred costs
related  to  financing its operations of RMB 714,478.  The Joint Venture did not
incur  any  similar costs during the six months ended June 30, 2000.  Such costs
decreased  in  2000  as compared to 1999 primarily as a result of a reduction in
interest  bearing  debt  to  Wuhan Company, which decreased as a result of Wuhan
Company  forgiving  RMB  16,329,758  of  such debt, which was recorded effective
December  31,  1999,  as  described  above.

Income Taxes.  The Company did not recognize any income taxes for the six months
ended  June  30,  2000  and  1999.  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.  PRC entities are generally subject to income taxes
at an effect rate of 33%.  For the light industry or packaging industry in which
Wuhan  Limited  is  engaged, income tax rates are at a preferential rate of 27%.
Furthermore,  newly established joint ventures are exempt from income tax in the
first  two  years starting from the first year of profitable operations, as well
as  being allowed a 50% reduction in tax in the third, fourth and fifth years of
profitable operations.  Losses incurred by joint ventures may be carried forward
for  five  years.


                                       18
<PAGE>
Equity  in  Loss  of Joint Venture.  For the six months ended June 30, 1999, the
Company recorded equity in loss of Joint Venture of RMB 4,293,053 to reflect the
Company's  60%  interest  in  the  Joint  Venture.

Minority Interest.  For the six months ended June 30, 2000, the Company recorded
a minority interest of RMB 1,534,406 to reflect Wuhan Company's 40% in the Joint
Venture.

Net Loss.  Net loss was RMB 1,350,154 for the six months ended June 30, 2000, as
compared  to a net loss of RMB 5,418,851 for the six months ended June 30, 1999.


Consolidated  Financial  Condition  -  June  30,  2000:

Liquidity  and  Capital  Resources:

Operating.  For  the  six  months  ended June 30, 2000, the Company's operations
generated cash resources of RMB 388,449, as compared to utilizing cash resources
of  RMB  427,540  for  the  six months ended June 30, 1999.  The Company had net
working  capital  of RMB 20,450,025 at June 30, 2000, reflecting a current ratio
of 1.87:1 at June 30, 2000.  A major reason for the Company having a significant
positive  net  working  capital position at June 30, 2000 was the forgiveness of
debt  by  Wuhan  Company  effective  December  31,  1999  of  RMB  16,329,758.

Investing.  During  the  six  months ended June 30, 1999, additions to property,
plant  and equipment were RMB 68,542.  The Company did not have any additions to
or  sales  of property, plant and equipment during the six months ended June 30,
2000.

As  of  June  30,  2000,  the  Company  had  budgeted  capital  expenditures  of
approximately  RMB  200,000  through  December  31,  2000.

Financing.  The  Company has relied on the credit provided by Wuhan Company, the
40%  interest  holder  in  the  Joint  Venture,  supplemented by the sale of its
securities  and short-term bank loans, for the working capital resources to fund
its  operations from March 1997 through June 2000.  Additional transactions with
respect  to  the  Joint  Venture  and  Wuhan  Company  are  discussed  above  at
"Overview".


                                       19
<PAGE>
The  Company  had  RMB  10,072,390  due  from Wuhan Company at June 30, 2000, as
compared  to  RMB 10,462,659 due from Wuhan Company at December 31, 1999, net of
the  amount  extinguished  effective  December  31,  1999  of RMB 16,329,758, as
described  above.

The  Company  has  incurred  operating  losses  and  negative  cash  flows  from
operations  during  the  past  few  years  that may impair its ability to obtain
additional equity capital.  The Company has relied on the sale of its securities
and  the  credit  provided  by  Wuhan Limited to fund its operations since 1997.
Based  on  currently  proposed  plans  and assumptions relating to the Company's
operations,  the Company believes that its projected cash flows from operations,
combined  with  the  credit  provided  by Wuhan Company, will provide sufficient
liquidity  and  capital  resources  to  support the Company's planned operations
through  December  31,  2000.

However, the Company anticipates that it will require additional capital to meet
its  funding  obligations to the Joint Venture.  In addition, to the extent that
the Company experiences a substantial increase in revenues and/or acquires other
operations,  the  Company  may also require additional capital.  Should the cash
flows  generated  by  operating and financing activities be insufficient to fund
the Company's future operations, the Company's ability to conduct operations may
be  impaired.


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
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.


                                       20
<PAGE>
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 effect the Company's financial performance when measured
in  United  States  dollars.


New  Accounting  Pronouncement:

In  June  1998,  the  Financial  Accounting Standards Board issued Statement No.
133,  "Accounting  for Derivative Instruments and Hedging Activities" ("SFAS No.
133"),  which,  as amended, is effective for financial statements for all fiscal
quarters  of  all  fiscal  years  beginning  after June 15, 2000.  SFAS No.  133
standardizes  the  accounting  for  derivative  instruments,  including  certain
derivative  instruments embedded in other contracts, by requiring that an entity
recognize  those  item  as  assets  or liabilities in the statement of financial
position  and  measure  them  at  fair  value.  SFAS No.  133 also addresses the
accounting for hedging activities.  The Company will adopt SFAS No.  133 for its
fiscal  year  beginning  October  1,  2001.  The  Company  does  not expect that
adoption of SFAS No.  133 will have a material impact on its financial statement
presentation  or  disclosures.


                                       21
<PAGE>
                        PART II.  OTHER INFORMATION

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

     (a)  Exhibits:

          27   Financial  Data  Schedule  (electronic  filing  only)

     (b)  Reports  on  Form  8-K:

          Three  Months  Ended  June  30,  2000  -  None


                                       22
<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)



                                          /s/ DANNY WU
Date:  August  21,  2000             By:  --------------------------
                                            Danny Wu
                                            Chief Executive Officer
                                           (Duly Authorized Officer)



                                          /s/ OSCAR  SHEN
Date:  August  21,  2000             By:  --------------------------
                                            Oscar  Shen
                                            Accounting and Finance
                                            Manager
                                            (Principal Financial
                                            and Accounting Officer)


                                       23
<PAGE>