Annex 5
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manufactures and consumer goods are expected to rise further
as a result of China's recent emphasis on light industries
and relaxation of control over domestic consumption.
20.
Despite its recent growth in value terms, the UK's share
in Hong Kong's total re-exports to China is very small and is
actually declining, from 1.7% in 1978 to 1.3% in 1981. This
indicates that the UK has not adequately explored the oppor-
tunity to expand her exports to China through Hong Kong.
Other entrepot trade
21. The UK is the ninth largest supplier for Hong Kong's
trade in re-exports, after China, Japan, USA, Taiwan, South
Korea, Switzerland, Federal Republic of Germany, and
Singapore. This trade has been expanding fast in recent
years and now comprises 34% of Hong Kong's total exports,
reflecting Hong Kong's re-emergence as a centre for entrepot
trade, particularly for the Asia/Pacific basin. The main
markets for Hong Kong's re-exports are China, USA, Indonesia, Singapore, Japan and Taiwan. Details of this trade are given
in Annex 5.
Hong Kong as a Joint Venture Manufacturing Centre
22. In the eight years from 1973-81, the number of industrial
establishments with overseas investment known to the Industry
Department increased from 221 to 430, while the value of such
investment increased by some 400%. As at end September 1982,
there were 454 factories known to the Industry Department to
be wholly or partly owned by overseas interests with a total
investment amounting to over £714 million. The leading source
countries were USA, Japan and UK. Investments from UK now
amount to 5.9% of total overseas investment after the USA
and Japan's shares of 47.4% and 29.6% respectively. The UK
investment is represented by some 47 companies with a total
investment of £42 million. These are a mixture of wholly
owned...../-