RESTRICTED

values recorded in Hong Kona's

external trade for 1390.

-

For these commodities, statistics of the US impor from

China and other major competitors are identified, including their values and quantities and percentage share in the US

marker

4.

Within the import statistics of the US. both the

c.i.f. value (including cost. insurance and freight but

excluding tariff) and quantity of the imports. as well import duties are available.

These enable the import

bv

the

import

unit valual

as

the

prices (as measured

commodities from different countries inclusive of tariff to

be derived. The new import prices of China's products due

to the imposition of the much higher non-MFN tariff rates

upon a loss of MFN status can also be estimated

5.

Bv comparing the new import

products

prices of

(under

other

non-MFN rariff

prices of China'a

with tho

import

countries' products in the US market, and

also the relative market share of these countries the

impact on China's exports to the US and hence the impact on

Hong Kong's re-exports to the US of China origin are

assegged ая follows :

(a) LOW 1mpact

'The impact will be low if the new

import prices of China's products are still much

below and thus very competitive relative to those

of other competitors. Moreover, even though the

price differential may become narrower. if China

accounts for a substantial market share of US

imports. other competitors mav not he nrenared or have the ready capacity to take up a much larger

proportion of the market . In such circumstances,

it is estimated that exports of China of these

products to the US will decrease by only 20-30%.

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