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 September 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)

                    Issuer's telephone number:  852-2893-9676

                                 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  September  30,  2000,  the  Company had 4,307,158 shares of common stock
issued  and  outstanding.

Documents  incorporated  by  reference:  None.

Transitional  Small  Business  Disclosure  Format:  Yes  [ ]  No  [X]


                                        1
<PAGE>
                           CHINA GATEWAY HOLDINGS INC.

                                      INDEX


PART  I.   FINANCIAL  INFORMATION

     Item  1. Financial  Statements

              Consolidated Balance Sheet (Unaudited) - September 30, 2000

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

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

              Notes  to  Consolidated  Financial  Statements (Unaudited) - Three
              Months and Nine Months Ended September 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>
            CHINA GATEWAY HOLDINGS INC.
        CONSOLIDATED BALANCE SHEET (UNAUDITED)

                                        September 30, 2000
                                     -----------------------
                                         USD         RMB

ASSETS
Current assets:
  Cash and cash equivalents             26,914       223,390
  Receivables
    Trade, net                       2,698,283    22,395,753
    Affiliates                         205,727     1,707,531
    Employees                           73,103       606,750
    Other                              172,214     1,429,379
  Inventories (Note 2)                 497,363     4,128,109
  Prepaid expenses and other           319,380     2,650,851
  Amounts due from Joint Venturer    1,032,682     8,571,258
                                     ----------  ------------
  Total current assets               5,025,666    41,713,021
                                     ----------  ------------

Property, plant and equipment, net     673,177     5,587,371

Construction in progress                11,743        97,461
                                     ----------  ------------
  Total assets                       5,710,586    47,397,853
                                     =========    ===========

LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities:
  Accounts payable                   1,164,934     9,668,955
  Other payables and accruals          582,973     4,838,677
  Amounts due to related parties       278,443     2,311,074
  Taxes payable                        829,959     6,888,663
                                     ----------  ------------
  Total current liabilities          2,856,309    23,707,369
                                     ----------  ------------
Minority interest                    1,171,808     9,726,003

Shareholders equity:
  Common stock, par value
    US$0.0001 per share;
    authorized - 50,000,000
    shares; issued and
    outstanding - 4,307,158
    shares                                 431         3,568
  Capital in excess of par           5,051,238    41,925,275
  Deficit                           (3,448,995)  (28,626,662)
  General reserve                       76,677       636,421
  Accumulated other
    comprehensive income                 3,118        25,879
                                     ----------  ------------
  Total shareholders' equity         1,682,469    13,964,481
                                     ----------  ------------
  Total liabilities and
    shareholders' equity             5,710,586    47,397,853
                                     ==========  ============

  See accompanying notes to consolidated financial statements.


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

                                            Three Months Ended September 30,
                                           -----------------------------------
                                             2000        2000         1999
                                           ----------  ----------   ----------
                                              USD         RMB          RMB
                                                                    (Restated -
                                                                      Notes 1
                                                                       and 7)

Net sales                                  2,331,579   19,352,108            -

Cost of sales                              2,185,291   18,137,920            -
                                           ----------  -----------  -----------
Gross profit                                 146,288    1,214,188            -

Administrative and general
  expenses                                   406,504    3,373,980      443,261
Selling expenses                              46,067      382,355            -
                                           ----------  -----------  -----------
Loss from operations                        (306,283)  (2,542,147)    (443,261)

Other income (expense):
  Interest income                                250        2,073            8
  Interest expense                            (4,161)     (34,538)           -
  Commission income (Notes 4 and 7)                                    767,689
  Other                                       11,367       94,346            -
                                           ----------  -----------  -----------
Income (loss) before equity in
  loss of joint venture                     (298,827)  (2,480,266)     324,436

Equity in loss of joint venture
  (Notes 1 and 6)                                  -            -     (932,951)
                                           ----------  -----------  -----------
Loss before minority interest               (298,827)  (2,480,266)    (608,515)

Minority interest (Note 1)                    96,206      798,511            -
                                           ----------  -----------  -----------
Net loss                                    (202,621)  (1,681,755)    (608,515)

Other comprehensive income:
  Foreign currency translation
    adjustment                                 3,656       30,349            -
                                           ----------  -----------  -----------
Comprehensive loss                          (198,965)  (1,651,406)    (608,515)
                                           ==========  ===========  ===========

Net loss per common share -
  Basic and Diluted (Note 1)                   (0.05)       (0.39)       (0.14)
                                           ==========  ===========  ===========

Weighted average number of
  common shares outstanding                4,307,158    4,307,158    4,241,426
                                           ==========  ===========  ===========

          See accompanying notes to consolidated financial statements.


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

                                              Nine Months Ended September 30,
                                           ------------------------------------
                                             2000        2000         1999
                                           ----------  -----------  -----------
                                              USD         RMB          RMB
                                                                    (Restated -
                                                                      Notes 1
                                                                       and 7)

Net sales                                  6,164,201   51,162,869            -

Cost of sales                              5,594,606   46,435,229            -
                                           ----------  -----------  -----------
Gross profit                                 569,595    4,727,640            -

Administrative and general
  expenses                                 1,576,186   13,082,343    1,569,059
Selling expenses                             115,311      957,085            -
                                           ----------  -----------  -----------
Loss from operations                      (1,121,902)  (9,311,788)  (1,569,059)

Other income (expense):
  Interest income                                545        4,518            8
  Interest expense                           (11,829)     (98,182)           -
  Commission income (Notes 4 and 7)          450,000    3,735,000      767,689
  Other                                       36,822      305,626            -
                                           ----------  -----------  -----------
Loss before equity in loss of
  joint venture                             (646,364)  (5,364,826)    (801,362)

Equity in loss of joint venture
  (Notes 1 and 6)                                  -            -   (5,226,004)
                                           ----------  -----------  -----------
Loss before minority interest               (646,364)  (5,364,826)  (6,027,366)

Minority interest (Note 1)                   281,074    2,332,917            -
                                           ----------  -----------  -----------
Net loss                                    (365,290)  (3,031,909)  (6,027,366)

Other comprehensive income:
  Foreign currency translation
    adjustment                                 5,231       43,418            -
                                           ----------  -----------  -----------
Comprehensive loss                          (360,059)  (2,988,491)  (6,027,366)
                                           ==========  ===========  ===========

Net loss per common share
  Basic and Diluted (Note 1)                   (0.08)       (0.70)       (1.42)
                                           ==========  ===========  ===========

Weighted average number of
  common shares outstanding                4,307,158    4,307,158    4,241,426
                                           ==========  ===========  ===========

          See accompanying notes to consolidated financial statements.


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

                                             Nine Months Ended September 30,
                                           ------------------------------------
                                             2000        2000         1999
                                           ----------  -----------  -----------
                                              USD         RMB          RMB
                                                                    (Restated -
                                                                      Notes 1
                                                                       and 7)

Operating activities:
Net loss                                    (365,290)  (3,031,909)  (6,027,366)
Adjustments to reconcile net loss
  to net cash provided by operating
  activities:
  Depreciation                                41,320      342,953        42,500
  Equity in loss of joint venture                  -            -     5,226,004
  Changes in operating assets and
    liabilities, net of effects of
    consolidation of Joint Venture:
    (Increase) decrease in
      Trade receivables, net                 (17,221)    (142,931)           -
      Amounts due from affiliates            322,873    2,679,843            -
      Amounts due from employees             (12,587)    (104,468)           -
      Other receivables, deposits
        and prepayments                     (225,936)  (1,875,270)    (851,640)
      Inventories                            619,091    5,138,459            -
      Amounts due from Joint Venturer        227,880    1,891,401            -
    Increase (decrease) in
      Accounts payable                      (686,951)  (5,701,694)    (905,571)
      Other payables and accruals             39,782      330,190    2,209,250
      Amounts due to Joint Venturer                -            -      (44,319)
      Amounts due to affiliates                    -            -      506,451
      Amounts due to related parties         184,548    1,531,752            -
      Taxes payable                          166,756    1,384,074            -
                                           ----------  -----------  -----------
  Net cash provided by operating
    activities                               294,265    2,442,400      155,309
                                           ----------  -----------  -----------
Investing activities:
  Additions to property, plant and
    equipment                                (11,836)     (97,812)    (129,304)
                                           ----------  -----------  -----------
  Net cash used in investing
    Activities                               (11,836)     (97,812)    (129,304)
                                           ----------  -----------  -----------
Financing activities:
  Minority interest                         (281,074)  (2,332,915)           -
  Issuance of common stock                         -            -      612,770
                                           ----------  -----------  -----------
  Net cash provided by (used in)
    financing activities                    (281,074)  (2,332,915)     612,770
                                           ----------  -----------  -----------
Cash and cash equivalents:
  Net increase                                 1,355       11,673      638,775
  Effect of exchange rates changes
    on cash                                    5,231       43,418         (911)
  At beginning of period                      20,328      168,299      590,849
                                           ----------  -----------  -----------
  At end of period                            26,914      223,390    1,228,713
                                           ==========  ===========  ===========

     See  accompanying  notes  to  consolidated  financial  statements.


                                        6
<PAGE>
                           China Gateway Holdings Inc.
             Notes to Consolidated Financial Statements (Unaudited)
         Three Months and Nine Months Ended September 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.


                                        7
<PAGE>
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  nine  months  ended  September  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 nine months ended September 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  nine months ended September 30, 1999 as a
result  of  the  restatement.

Assets  and liabilities recorded on consolidation of the Joint Venture effective
January  1,  2000  were  approximately  as  follows:

                                      In thousand RMB
                                      ---------------

Cash                                         120
Receivables                               27,810
Inventories                                9,267
Prepaid expenses and other                   607
Amount due from Joint Venturer            10,463
Property, plant and equipment              5,840
Accounts payable                         (14,402)
Other payables and accruals               (4,085)
Taxes payable                             (5,505)


                                        8
<PAGE>
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 immaterial and
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
September  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  interim  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 September 30, 2000, the results of operations
for  the three months and nine months ended September 30, 2000 and 1999, and the
cash  flows  for  the  nine  months  ended  September  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 with respect
to  interim  financial  statements,  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.


                                        9
<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 nine months ended September
30,  2000  are  not  necessarily  indicative  of the results of operations to be
expected  for  the  full  fiscal  year  ending  December  31,  2000.

Earnings  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 potential dilution that
would  occur  if  dilutive  stock  options  and  warrants were exercised.  These
potentially  dilutive  securities  were anti-dilutive for all periods presented,
and  accordingly,  basic  and  diluted  earnings  per share are the same for all
periods  presented.  As  of  September 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).

2.     Inventories

Inventories  consisted  of  the  following  at  September  30,  2000:

                     USD           RMB
                   -------     ---------

Raw materials      175,833     1,459,414
Finished goods     321,530     2,668,695
                   -------     ---------
                   497,363     4,128,109
                   =======     =========


                                       10
<PAGE>
3.     Income  Taxes

The  Company  did  not have any income tax expense for the three months and nine
months  ended  September  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

The Company earns commission income by providing agency services to an unrelated
third  party.  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.  During the nine months ended September 30, 2000 and
1999,  the  Company  had  commission income of RMB 3,735,000 and RMB 767,689 (as
restated  -  see Note 7), respectively.  During the three months ended September
30,  2000  and 1999, the Company had commission income of RMB 0 and RMB 767,689,
respectively.


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  nine months ended September 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  nine  months  ended  September  30,  2000, approximately 20% of the
Company's  net  sales  were  generated  by  one customer, and one other customer
accounted  for  over  10%  of  sales.  During such periods, the Company also had
significant  purchases  of  raw  material  inventory  from  the  same  customer.


                                       11
<PAGE>
6.     Condensed  1999  Financial  Information  of  the  Joint  Venture

During  the three months and nine 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 nine months ended
September  30,  1999  are  as  follows:


                       Three Months Ended       Nine Months Ended
                       September 30, 1999       September 30, 1999
                       ------------------       ------------------
                       (in thousand RMB)        (in thousand RMB)

Net sales                   16,528                  42,660

Cost of sales               14,784                  38,209
                            -------                 -------
Gross profit                 1,744                   4,451

Operating expenses           3,888                  13,035
                            -------                 -------
Loss from operations        (2,144)                 (8,584)

Financing expense
  Related parties               11                     648
  Other                          2                      80

Commission income              595                     595
Interest income                  7                       7
                            -------                 -------
Net loss                    (1,555)                 (8,710)
                            =======                 =======

The Company's
proportionate share
of net loss of the
Joint Venture                 (933)                 (5,226)
                            =======                 =======


                                       12
<PAGE>
7.     Restatement  of  Commission  Income

The  previously  issued financial statements for the nine months ended September
30,  1999  included  commission  income  of  RMB  1,422,310 that was incorrectly
recorded  as  earned  due  to  a  misinterpretation of the commission agreement.
These  financial statements have been restated to reflect the correction of this
error  as  follows:

                                      Restatement
                                      of
                                      Previously
                                      Reported
                                      Amounts
                                      Under
                             As       Equity
                         Previously   Method           As
                          Reported    Accounting     Restated
                         ----------   ----------    ---------

Total liabilities        33,217,553    1,789,682    3,211,992
Shareholders' equity      9,337,442    9,337,442    7,915,132

Net loss                  4,605,056    4,605,056    6,027,366
Net loss per share             1.09         1.09         1.42


                                       13
<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 September
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 September 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 was 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.


                                       14
<PAGE>
Through  December  31,  1997, OPL had contributed cash of RMB 4,867,636 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  5,752,909  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 and September 30, 2000 funding
obligations  of  RMB  5,000,000  and  RMB  5,000,000, respectively, 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.


                                       15
<PAGE>
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.

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  nine  months  ended  September  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 nine months ended September 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  nine months ended September 30, 1999 as a
result  of  the  restatement.


                                       16
<PAGE>
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.

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  nine months ended September 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  nine  months  ended  September  30,  2000, approximately 20% of the
Company's  net  sales  were  generated  by  one customer, and one other customer
accounted  for  over  10%  of  sales.  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 immaterial and 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  having  restated 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  nine  months  ended  September  30, 2000 are not directly comparable to its
financial  statements  for  the three months and nine months ended September 30,
1999.  Condensed results of operations of the Joint Venture for the three months
and  nine months ended September 30, 1999 are provided at Note 6 of the Notes to
the  Consolidated  Financial  Statements.


                                       17
<PAGE>
Consolidated  Results  of  Operations:

Three  Months  Ended  September  30,  2000  and  1999:

Sales.  For  the  three  months  ended  September  30,  2000,  sales  were  RMB
19,352,108.  Sales of the Joint Venture were RMB 16,528,350 for the three months
ended September 30, 1999.  Sales increased by RMB 2,823,758 or 17.1% as a result
of  increased  market  demand  and  increased  selling  prices.

During  the  three  months  ended  September  30,  2000,  6,500  metric  tons of
cartonboard  were  sold  at  an  average  per ton selling price of RMB 2,977, as
compared  to 6,228 metric tons of cartonboard sold at an average per ton selling
price  of  RMB  2,654  for  the  three  months  ended  September  30,  1999.

Gross  Profit.     For  the  three months ended September 30, 2000, gross profit
was 6.3% of sales, as compared to a gross profit of 10.6% of Joint Venture sales
for  the  three months ended September 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 September 30,
2000,  administrative and general expenses were RMB 3,373,980 or 17.4% of sales.
For  the  three  months  ended  September  30,  1999, administrative and general
expenses  were  RMB 443,261.  For the three months ended September 30, 1999, the
Joint  Venture's  administrative  and  general  expenses  were  RMB  3,450,947.

Selling  Expenses.  For  the  three  months  ended  September  30, 2000, selling
expenses  were  RMB  382,355  or  2.0%  of  sales.  For  the  three months ended
September  30,  1999,  the  Company did not incur any selling expenses.  For the
three months ended September 30, 1999, the Joint Venture's selling expenses were
RMB  436,652  or  2.6%  of  Joint  Venture  sales.

Loss  from  Operations.  For the three months ended September 30, 2000, the loss
from  operations  was  RMB  2,542,147.  For the three months ended September 30,
1999,  the  loss  from  operations  was RMB 443,261.  For the three months ended
September  30, 1999, the Joint Venture's loss from operations was RMB 2,144,000.

Other  Income  (Expense).  For  the  three  months ended September 30, 1999, the
Company  had  commission  income  of  RMB 767,689.  The Company did not have any
commission  income  for  the  three  months  ended  September  30,  2000.

For  the three months ended September 30, 2000, interest expense was RMB 34,538.
For  the three months ended September 30, 1999, the Joint Venture incurred costs
related  to financing its activities of RMB 13,000.


                                       18
<PAGE>
Income  Taxes.  The  Company  did  not have any income tax expense for the three
months  ended  September  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 September 30, 1999,
the  Company  recorded equity in loss of Joint Venture of RMB 932,951 to reflect
the  Company's  60%  interest  in  the  Joint  Venture.

Minority  Interest.  For  the three months ended September 30, 2000, the Company
recorded  a  minority interest of RMB 798,511 to reflect the Wuhan Company's 40%
in  the  Joint  Venture.

Net  Loss.  Net  loss was RMB 1,681,755 for the three months ended September 30,
2000,  as  compared  to  a  net  loss  of RMB 608,515 for the three months ended
September  30,  1999.

Nine  Months  Ended  September  30,  2000  and  1999:

Sales.  For the nine months ended September 30, 2000, sales were RMB 51,162,869.
Sales  of  the  Joint  Venture  were  RMB  42,660,000  for the nine months ended
September  30,  1999.  Sales  increased by RMB 8,502,869 or 19.9% as a result of
increased  market  demand  and  increased  selling  prices.

During  the  nine  months ended June 30, 2000, 17,560 metric tons of cartonboard
were  sold  at  an  average  per  ton selling price of RMB 2,913, as compared to
15,847  metric  tons  of cartonboard sold at an average per ton selling price of
RMB  2,692  for  the  nine  months  ended  September  30,  1999.

Gross  Profit.  For  the  nine months ended September 30, 2000, gross profit was
9.2% of sales, as compared to a gross profit of 10.4% of Joint Venture sales for
the  nine  months  ended  September  30,  1999.


                                       19
<PAGE>
Administrative  and  General  Expenses.  For the nine months ended September 30,
2000, administrative and general expenses were RMB 13,082,343 or 25.6% of sales.
For  the  nine  months  ended  September  30,  1999,  administrative and general
expenses  were  RMB 1,569,059. For the nine months ended September 30, 1999, the
Joint  Venture's  administrative  and  general  expenses  were  RMB  12,184,131.

Selling  Expenses.  For  the  nine  months  ended  September  30,  2000, selling
expenses were RMB 957,085 or 1.9% of sales.  For the nine months ended September
30,  1999,  the Company did not incur any selling expenses.  For the nine months
ended  September 30, 1999, the Joint Venture's selling expenses were RMB 850,765
or  2.0%  of  Joint  Venture  sales.

Loss  from  Operations.  For  the nine months ended September 30, 2000, the loss
from  operations  was  RMB  9,311,788.  For  the nine months ended September 30,
1999,  the  loss  from  operations was RMB 1,569,059.  For the nine months ended
September  30, 1999, the Joint Venture's loss from operations was RMB 8,584,000.

Other  Income  (Expense).  For  the  nine  months  ended September 30, 2000, the
Company had commission income of RMB 3,735,000, as compared to commission income
of  RMB  767,689  for  the  nine  months  ended  September  30,  1999.

For  the  nine months ended September 30, 2000, interest expense was RMB 98,182.
For  the  nine months ended September 30, 1999, the Joint Venture incurred costs
related  to  financing  its  operations of RMB 728,000.  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  have any income tax expense for the nine
months  ended  September  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.


                                       20
<PAGE>
Equity  in Loss of Joint Venture.  For the nine months ended September 30, 1999,
the Company recorded equity in loss of Joint Venture of RMB 5,226,004 to reflect
the  Company's  60%  interest  in  the  Joint  Venture.

Minority  Interest.  For  the  nine months ended September 30, 2000, the Company
recorded  a minority interest of RMB 2,332,917 to reflect Wuhan Company's 40% in
the  Joint  Venture.

Net  Loss.  Net  loss  was RMB 3,031,909 for the nine months ended September 30,
2000,  as  compared  to  a  net  loss of RMB 6,027,366 for the nine months ended
September  30,  1999.

Consolidated  Financial  Condition  -  September  30,  2000:

Liquidity  and  Capital  Resources:

Operating.  For  the  nine  months  ended  September  30,  2000,  the  Company's
operations  generated cash resources of RMB 2,442,400, as compared to generating
cash resources of RMB 155,309 for the nine months ended September 30, 1999.  The
Company  had  net  working  capital  of  RMB  18,005,652  at September 30, 2000,
reflecting  a current ratio of 1.76:1 at September 30, 2000.  A major reason for
the  Company  having  a  significant  positive  net  working capital position at
September  30,  2000  was  the  forgiveness  of  debt by Wuhan Company effective
December  31,  1999  of  RMB  16,329,758,  as  described  above  at  "Overview".

Investing.  During  the  nine  months  ended  September  30,  2000, additions to
property,  plant  and  equipment were RMB 97,812, as compared to RMB 129,304 for
the  nine  months  ended  September  30,  1999.

As  of  September  30,  2000,  the  Company had budgeted capital expenditures of
approximately  RMB  120,000  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 September 2000.  Significant transactions
between  the  Joint Venture and Wuhan Company are discussed above at "Overview".

As  of September 30, 1999, the Company had RMB 8,571,258 due from Wuhan Company,
as  compared  to  RMB  10,462,659 due from Wuhan Company to the Joint Venture at
December 31, 1999, net of the amount extinguished effective December 31, 1999 of
RMB  16,329,758.


                                       21
<PAGE>
The  Company has relied on the sale of its securities and the credit provided by
Wuhan  Company to fund its operations since 1997.  However, the Company has also
incurred  operating  losses and negative operating cash flows during this period
that  may  impair  the  Company's ability to continue to operate and finance its
business.  The  Company  will  require  additional capital to fund its operating
requirements,  as  well as to meet its funding obligations to the Joint Venture.
The  Company  is  exploring various alternatives to raise this required capital,
but  there  can  be  no  assurances  that the Company will be successful in this
regard.  To  the  extent  that  the  Company  is  unable  to  secure the capital
necessary  to  fund  its  future cash flow requirements on a timely basis and/or
under  acceptable  terms  and  conditions,  the  Company may not have sufficient
resources  to  continue  to conduct operations.  In addition, to the extent that
the Company experiences a substantial increase in revenues and/or acquires other
business  operations,  the  Company  may  also  require  additional  capital.

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.


                                       22
<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.

                           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  September  30,  2000  -  None


                                       23
<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:  November 17, 2000          By:  /s/  DANNY WU
                                     ---------------------------
                                       Danny Wu
                                       Chief Executive Officer
                                       (Duly Authorized Officer)




Date:  November 17, 2000          By:  /s/ CARL YUEN
                                     ---------------------------
                                       Carl Yuen
                                       Accounting and Finance
                                       Manager
                                       (Principal Financial
                                       and Accounting Officer)


                                       24
<PAGE>