G.F. 326

CONFIDENTIAL #

14

(13).

The

in retained imports of garments from China 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 82% of the goods imported from China in the first half of 1988 were subsequently re-exported, with re-exports of China origin accounting for 47% of Hong

Kong's total re-exports.

Year-on-

Imports

from China

Year-on-

Imports year

retained

from

growth

in

year growth

Re-exports

of China

China

rate

Hong Kong

rate #

origin

Year-on-

year growth rate #

(HK$Mn)

(*)

(HK$Mn)

(응)

(HK$Mn)

(%)

1987 Q1

23,172

52

6,673

16

16,499

74

Q2

29,110

48

9,084

15

20,026

70

Q3

31,120

43

7,702

1

23,417

66

Q4

33,954

36

9,631

10

24,323

50

Annual 117,357

44

33,091

10

84,266

63

1988 Q1 29,407

27

4,807

-28

24,600

49

Q2 37,287

28

7,061

-22

30,226

51

H1

66,694

28

11,868

-25

54,826

50

# in money terms

(13) With the tightening of the enforcement measures,

some goods which previously classified as domestic exports are now re-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.

CONFIDENTIAL **

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