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  March  31,  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)

             CLI Building, 313 Hennessy Road, Suite 1003, 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  March  31, 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) - March 31, 2001 and December
          31,  2000

          Consolidated  Statements of Operations and Comprehensive Income (Loss)
          (Unaudited)  -  Three  Months  Ended  March  31,  2001  and  2000

          Consolidated Statements of Cash Flows (Unaudited) - Three Months Ended
          March  31,  2001  and  2000

          Notes  to Consolidated Financial Statements (Unaudited) - Three Months
          Ended  March  31,  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,
                                                                     March 31, 2001              2000
                                                                  USD               RMB           RMB
<S>                                                       <C>                   <C>           <C>
ASSETS

Current Assets:
  Cash                                                    $             1,929        15,970        80,085
  Deposits and other current assets                                     9,291        76,922        77,402
                                                          ------------------------------------------------

    Total current assets                                               11,220        92,892       157,487
                                                          ------------------------------------------------

Property, plant and equipment, net
    of accumulated depreciation                                         7,397        61,245        66,615
                                                          ------------------------------------------------

    Total assets                                          $            18,617       154,137       224,102
                                                          ================================================

LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT)

Current liabilities:
  Accounts payable                                        $           109,383       905,615       905,615
  Other payable and accrued expenses                                  103,514       857,021     1,087,312
  Due to Joint Venturer                                                 2,360        19,546        19,546
  Due to affiliates                                                   461,068     3,817,318     3,090,580
                                                          ------------------------------------------------

    Total liabilities (all current)                                   676,324     5,599,500     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                                         431         3,568         3,568
  Capital in excess of par                                          5,063,867    41,925,275    41,925,275
  Deficit                                                          (5,732,387)  (47,460,149)  (46,893,737)
  Accumulated comprehensive income (loss)                              10,381        85,943        85,943
                                                          ------------------------------------------------

    Total shareholders' equity (deficit)                             (657,707)   (5,445,363)   (4,878,951)
                                                          ------------------------------------------------

    Total liabilities and shareholders' equity (deficit)  $            18,617       154,137       224,102
                                                          ================================================
<FN>

See  notes  to  consolidated  financial  statements.
</TABLE>


<PAGE>
<TABLE>
<CAPTION>

CHINA  GATEWAY  HOLDINGS  INC.
CONSOLIDATED  STATEMENTS  OF  OPERATIONS  AND
COMPREHENSIVE  INCOME  (LOSS)  (UNAUDITED)

                                                             Three  Months  Ended  March  31,
                                                               2001           2001         2000
                                                                USD            RMB          RMB
<S>                                                    <C>                 <C>         <C>
Net sales                                              $               -           -           -
Cost of sales                                                          -           -           -
                                                       ------------------------------------------
Gross profit                                                           -           -           -

General and administrative expenses                               73,987     612,565     847,142

                                                                 (73,987)   (612,565)   (847,142)
                                                       ------------------------------------------

Other income:
  Interest income                                                      6          48       1,605
  Other                                                            5,569      46,104           -
                                                       ------------------------------------------

Loss from continuing operations                                  (68,412)   (566,413)   (845,537)

Income from discontinued operations of joint venture                   -           -   2,009,853
                                                       ------------------------------------------

Net income (loss)                                      $         (68,412)   (566,413)  1,164,316
                                                       ==========================================

Other comprehensive income:
    Foreign currency translation adjustment                            -           -       1,997
                                                       ------------------------------------------

Comprehensive income (loss)                            $         (68,412)   (566,413)  1,166,313
                                                       ==========================================

Earnings (loss) per common share:
  Basic loss from continuing operations                $           (0.02)      (0.13)      (0.20)
                                                       ==========================================
  Diluted loss from continuing operations              $           (0.02)      (0.13)      (0.20)
                                                       ==========================================
  Basic income from discontinued operations                            -           -        0.47
                                                       ==========================================
  Diluted income from discontinued operations                          -           -        0.45
                                                       ==========================================
  Basic net (loss) income                              $           (0.02)      (0.13)       0.27
                                                       ==========================================
  Diluted net (loss) income                            $           (0.02)      (0.13)       0.25
                                                       ==========================================

Weighted average number of common
    shares outstanding:
  Basic                                                         4,307,158   4,307,158   4,307,158
                                                       ==========================================
  Diluted                                                       4,307,158   4,307,158   4,470,380
                                                       ==========================================
<FN>
See  notes  to  consolidated  financial  statements.
</TABLE>


<PAGE>
<TABLE>
<CAPTION>

CHINA  GATEWAY  HOLDINGS  INC.
CONSOLIDATED  STATEMENTS  OF  CASH  FLOW  (UNAUDITED)

                                                        Three  Months  Ended  March  31,
                                                        2001            2001       2000
                                                         USD             RMB        RMB
                                                 -----------------------------------------
<S>                                              <C>                  <C>        <C>
Operating activities:
Net income (loss)                                $          (68,412)  (566,413)  1,164,316
Adjustment to reconcile net income
  (loss) to net cash used in
  operating activities:
  (Income) from discontinued operations                                         (2,009,853)
  Depreciation                                                  649      5,371       5,560
  Changes in operating assets and liabilities:
    (Increase) decrease in -
      Other receivables and deposit                              58        480     509,251
    Increase (decrease) in -
      Other payables and accruals                           (27,815)  (230,291)    512,156
      Amount due to affiliates                                    -          -     484,457
                                                 -----------------------------------------

Net cash used in
  operating activities                                      (95,521)  (790,853)    665,887
                                                 -----------------------------------------

Net cash provided by investing activities                         -          -           -
                                                 -----------------------------------------

Financing activities:
  Increase in due to affiliates                              87,778    726,738           -
                                                 -----------------------------------------

Net cash provided by financing activities                    87,778    726,738           -
                                                 -----------------------------------------

Effect of exchange rate on cash                                   -          -      19,536
                                                 -----------------------------------------

(Decrease) increase in cash                                  (7,743)   (64,115)    665,887

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

Cash, ending                                     $            1,929     15,970     733,592
                                                 =========================================
<FN>

See  notes  to consolidated  financial  statements.
</TABLE>


<PAGE>

CHINA  GATEWAY  HOLDINGS  INC.
NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS  (UNAUDITED)
THREE  MONTHS  ENDED  MARCH  31,  2001  AND  2000

1.     Organization  and  Basis  of  Presentation

Organization  -  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
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, the Joint Venture was terminated effective December 31, 2000 and 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 operating entity
at  this  time.

Basis  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  at 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


<PAGE>

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
March  31,  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.

Business  -  On  April  25,  2001  the  Company reached a formalized Acquisition
Agreement  with  The Glory Famous (Groups) Limited to acquire all the issued and
outstanding  stock  of  H.K.  Giantrich  International  Groups,  Limited, a Niue
corporation  with  its corporate headquarters located in Hong Kong ("Giantrich")
in  exchange  for  25,000,000 newly issued shares of China Gateway common stock.
The  acquisition  of  Giantrich  was  approved of the Board of Directors of both
companies.  After  the  intended  acquisition, which will be in effect a reverse
merger,  the  former owner of Giantrich will become the majority shareholder and
thereby  assume  control  of the Company. As part of the control, new management
will  be  introduced  to  the  Company.

Giantrich owns all the rights to extract coal and other natural resources from a
significant  operating coal mine in the Shandong Province of China. On September
28,  2000,  Giantrich  acquired  the  coal  mining  rights  from  a  state-owned
enterprise  in  the Peoples Republic of China. The majority of the coal products
produced in the mine are destined for local distribution in China. Small portion
of  its  coal  products  are  exported  through an approved agent in the Peoples
Republic  of  China.  In  accordance  with  the  September  28, 2000 acquisition
agreement  between  Giantrich  and  the  state-owned  enterprise  in the Peoples
Republic of China, the mining operation assets has been assessed to have a value
of  RMB267,999,600.

The  acquisition is now subject to a Special Shareholders meeting to approve the
acquisition. The Company is scheduling a Special meeting of the shareholders for
June 11, 2001 at 10:00a.m. at the Law Offices of Attorney Jerry Gruenbaum in New
Haven,  Connecticut.  Proxy Statement and Notice will be sent on May 14, 2001 to
the shareholders of record on April 30, 2001. Audits of the financial statements
of Giantrich are being prepared by the Company's auditors for the acquisition as
required  by  Regulation  SB.  As  soon  as the audited financial statements are
completed  they will be filed by amendment and be available to the shareholders.

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 March 31, 2001, the results of operations for the three months ended
March 31, 2001 and 2000, and the cash flows for the three months ended March 31,
2001 and 2000. The consolidated balance sheet as of December 31, 2000 is derived
from  the  Company's  audited  financial  statements.


<PAGE>
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
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 three months ended March 31, 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 months ended March
31,  2001 and 2000. 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 weighted average common shares outstanding at March 31, 2001 and 2000 were
4,307,158  and  diluted  weighted average common shares outstanding at March 31,
2001  and  2000  were  4,307,158  and  4,470,380,  respectively.

Included in diluted weighted average common shares outstanding at March 31, 2001
were  482,221 potentially dilutive securities consisting of warrants exercisable
at  prices  ranging  from  $0.10  to  $2.75  per  share.

4.     Related  party  transactions

During the three months ended March 31, 2001, certain shareholders made advances
to  the  Company  totaling  RMB726,738. The advances are unsecured, non-interest
bearing  and  are  payable  on  demand.

During  the  three  months  ended  March  31,  2001 and 2000, the Company earned
service  income  of  RMB  46,104  (2000:  RMB  0)  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 year ended
March  31,  2001  and  2000.  This  discussion  and  analysis  should be read in
conjunction  with  the  Company's  financial  statements  and related footnotes.

OVERVIEW:

Organization  -  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
68(5)  of  the  Joint  Venture's  Articles  of  Association  and  other relevant
provisions  in  the Joint Venture Agreement. In accordance with said Termination


<PAGE>
Agreement, the joint venture was terminated effective December 31, 2000 and 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 operating entity
at  this time. On March 16, 2001, the Company entered into a Letter of Intent to
acquire  all  the  issued  and outstanding stock of H.K. Giantrich International
Groups,  Limited,  in  exchange for 25,000,000 newly issued common shares of our
Company.  After  the  intended  acquisition,  which  will be in effect a reverse
merger,  the  former  owner  of Giantrich will become a majority shareholder and
thereby  assume  control  of the Company. As part of the control, new management
will  be  introduced  to  the  Company.

On  April  25,  2001 the Company reached a formalized Acquisition Agreement with
The  Glory  Famous  (Groups)  Limited  to acquire all the issued and outstanding
stock  of  H.K. Giantrich International Groups, Limited, a Niue corporation with
its  corporate  headquarters  located in Hong Kong ("Giantrich") in exchange for
25,000,000 newly issued shares of China Gateway common stock. The acquisition of
Giantrich  was  approved  of the Board of Directors of both companies. After the
intended acquisition, which will be in effect a reverse merger, the former owner
of  Giantrich will become the majority shareholder and thereby assume control of
the  Company.  As  part of the control, new management will be introduced to the
Company.

Giantrich owns all the rights to extract coal and other natural resources from a
significant  operating coal mine in the Shandong Province of China. On September
28,  2000,  Giantrich  acquired  the  coal  mining  rights  from  a  state-owned
enterprise  in  the Peoples Republic of China. The majority of the coal products
produced  in  the  mine  are  destined  for local distribution in China. A small
portion  of  its  coal  products  is  exported  through an approved agent in the
Peoples Republic of China. In accordance with the September 28, 2000 acquisition
agreement  between  Giantrich  and  the  state-owned  enterprise  in the Peoples
Republic of China, the mining operation assets has been assessed to have a value
of  RMB  267,999,600.



<PAGE>

Consolidated  Results  of  Operations:

Three  Months  Ended  March  31,  2001  and  2000:

Administrative and General Expenses - For the three months ended March 31, 2001,
administrative  and  general  expenses  were  RMB  612,565,  as  compared  to
administrative  and  general  expenses of RMB 847,142 a decrease of RMB 234,577.
The  decrease  is  primarily  due  to  decreased  legal  and  professional fees.

Other  Income  (Expense) - The Company had interest income of RMB 48 and service
income  of  RMB  46,104  from affiliated companies during the three months ended
March  31,  2001.  The  Company  had interest income of RMB 1,605 and no service
income  during  the  three  months  ended  March  31,  2000.

Income  Taxes  -  The  Company  did not recognize any income taxes for the three
months  ended March 31, 2001 and 2000. 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  -  Income  from  discontinued  operations  of the Joint
Venture  were  RMB  2,009,853  for  the  three  months  ended  March  31,  2000.

Net  Income/Loss from Operations - Net loss was RMB 566,413 for the three months
ended March 31, 2001, as compared to a net income of RMB 1,164,316 for the three
months ended March 31, 2000. Loss from continuing operations was RMB 566,413 and
RMB  845,537  for  the three months ended March 31, 2001 and 2000, respectively,
and  income  from discontinued operations was RMB 2,009,853 for the three months
ended  March 31, 2000. Basic and diluted net loss per share was RMB 0.13 for the
three  months  ended  March 31, 2001. For the three months ended March 31, 2000,
net  income  per  share  was  RMB 0.27 (basic) and RMB 0.26 (diluted), basic and
diluted  loss  per share from continuing operations was RMB 0.20, and income per
share  from discontinued operations was RMB 0.47 (basic) and RMB 0.45 (diluted).

Consolidated  Financial  Condition  -  March  31,  2001:

Liquidity  and  Capital  Resources:

Operating  - For the three months ended March 31, 2001, the Company's operations
utilized cash resources of RMB 790,853, as compared to generating cash resources
of  RMB  665,887  for  the  three  months  ended  March  31,  2000.

Investing  -  The  Company did not have any cash flows from investing activities
during  the  three  months  ended  March  31,  2001  and  2000.

Financing  -  Certain  shareholders  made  advances  to the Company totaling RMB
726,738  during  the  three  months  ended  March 31, 2001, which are unsecured,
non-interest  bearing  and  are  payable  on  demand.


<PAGE>
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.

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.


<PAGE>
                           PART II. OTHER INFORMATION

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

  (a)  Exhibits:

       Financial  Data  Schedule  (electronic  filing  only)

  (b)  Reports  on  Form  8-K:

       Three  Months  Ended  March  31,  2001  -  None



<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:                                             By:  /s/  DANNY  WU
                                                  -----------------------------
                                                  Danny  Wu
                                                  Chief  Executive Officer
                                                  (Duly  Authorized  Officer)




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




<PAGE>