ACEAIL
VISIT OF LORD GLENARTHUR TO HONG KONG: 29 JUNE 1 JULY 1988
BACKGROUND BRIEF B: UK/HONG KONG TRADE
General
1.
Hong Kong is the UK's eighteenth largest export market, and the second largest in the Far East after Japan. UK exports to HK in
1987 were a record £1,013m
-
a 5.4% increase over 1986.
The UK's share of the Hong Kong market has declined gradually in recent years. (Almost all suppliers have been losing market
2.
share to China.) At end-1986 it was 3.4% and at end-1987 was 3.2%.
The UK is the sixth largest supplier. Our principal exports are: capital goods; power generating equipment; electrical machinery; vehicles (buses and rail cars). The UK also sells leather and fur in significant quantities. The UK has traditionally performed well in Hong Kong's project sector: the Castle Peak power stations were built by GEC (with Babcock); Babcock built the Town Gas Plant (phase 1); and GEC and Metro-Cammell worked in unison on the Mass Transit Railway. More recently Davy Morris won an order to supply cranes for the container port; and GEC Transportation Projects the contract to supply a new traction system for the Mass Transit Railway. companies have been moving into Hong Kong's retail sector. Mothercare, Gieves and Hawkes, The Body Shop and Marks & Spencer have opened stores. BHS has entered into a joint venture with
Dodwell.
UK
Habitat,
Bilateral trade is in favour of Hong Kong. UK imports from Hong Kong in 1987 were £1,531.7m, giving HK a surplus of £518m and registering an increase of 0.06% over 1986.
3.
Within the EC the UK is Hong Kong's leading supplier. However, in terms of bilateral trade, the FRG overtook the UK in
1987 as HK's largest European trading partner.
4.
5. UK companies (banks, accountants, insurance brokers and solicitors) have a large presence in Hong Kong's 'invisibles' sector. Revenue accruing to the UK from 'invisibles' is estimated
B