8.
CONFIDENTIAL # 3
- 5
Although Hong Kong's domestic exports and re-exports to China still showed substantial growth in the first half of 1985, the growth rates have slowed down when the performance in the second quarter is compared with the first. In view of China's recent restrictions on imports, it seems likely that the growth rates of Hong Kong's domestic exports and of re-exports to China will slow down further in the second half of 1985. Despite this, for the
year as a whole, domestic exports to China are still forecast to grow by 44% in value terms (or 40% in real terms), while re-exports to China are forecast to grow by
72% in value terms.
9.
Analysed by products, domestic exports to China of telecommunications and sound recording and reproducing apparatus, office machinery, electrical machinery,
apparatus and appliances, electrical parts, photographic
apparatus and equipment, watches, and miscellaneous
manufactured articles grew very rapidly in the first half of 1985. As for re-exports, products which recorded rapid
growth included telecommunications and sound recording and
reproducing apparatus, industrial machinery, office
machines, road vehicles, iron and steel, and electrical
machinery, apparatus and appliances.
10.
On the other hand, the value of Hong Kong's imports from China, at HK$25,666 million in the first half
of 1985, was 5% lower than in the same period in 1984. In the first half of 1985 Japan once again overtook China to become the largest supplier of goods to Hong Kong.