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CONFIDENTIAL

21

機密

33.

China remained Hong Kong's largest source of

imports in the first three quarters of 1988, supplying 31%

of Hong Kong's total imports in that period. However, in respect of Hong Kong's retained imports, China's share

declined sharply to 10.56% in the first three quarters of

1988 from 17% in 1987 and was slightly lower than that of

Taiwan at 10.58%. Thus China's ranking in Hong Kong's

major sources of retained imports fell from second to the

third, after Japan and Taiwan. This reduction in China's

share was due to an overall decline of 27% in Hong Kong's

retained imports from China in the first three quarters of

1988 compared with the same period in 1987, which was

partly related to a sharp decline in Hong Kong's retained

imports of garments and textile products from China.

slow down in outward processing activities and greater

efforts by Hong Kong Government to enforce the certificate

of origin rules were probably largely responsible for this decline in retained imports of garments and textile

(23)

The

products from China

The very rapid growth in Hong

Kong's re-exports of China origin is related to China's

efforts in promoting its exports and the generally stable

export prices of Chinese products. Over 84% of the goods

imported from China in the first three quarters of 1988

(23) With the tightening of the enforcement measures in

1988, some goods which previously mis-classified as domestic exports are probably now being classified properly as re-exports of China origin. Since the value of retained imports from China is derived by subtracting re-exports of China origin from imports from China, the re-classification, which leads to a larger amount of re-exports of China origin, would result in a smaller amount of retained imports from China. To the extent that some mis-classification of re-exports as domestic exports existed in previous years, China's share in Hong Kong's retained imports at 17% in 1987 might have been over-stated. Thus the decline of China's share in Hong Kong's retained imports between 1987 and 1988 may be more apparent than real.

CONFIDENTIAL

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