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origin fell by 22%.

to

the changing

increased by 18% in value terms in the first half of 1991

compared with the same period in 1990, those of China

This declining trend was probably due

increased competition from other sources of supply and

pattern of local demand. But it was also

likely that, as the outward processing activities became

more mature and better organised, an increasing proportion of the goods from China which were produced under outward

processing arrangements could be shipped out as re-exports

through Hong Kong to overseas markets rather than as

imports into Hong Kong for further processing. This was in

line with the fact that re-exports of consumer goods from

China in the first half of 1991, which accounted for 73% of

Hong Kong's total re-exports' of China origin in that

over the same

period, increased by 33% in value

period in 1990.

29.

terms

Putting these trade figures in perspective, Hong Kong incurred a visible trade deficit of HK$37,396 million

with China in the first half of 1991, representing an increase of 17% over the same period in 1990.

1991 01

(HK$Mn)

1991 02 (HK$Mn)

1991 H1 (HK$Mn)

Domestic exports to China

10,247

14,057

24,303

Re-exports to China

28,842

38,587

67,530

Total exports to China

39,089

52,744

91,833

Imports from China*

57,174

72,056

129,229

Total visible trade with

China

96,263

124,800

221,063

Visible trade balance

-18,085

-19,311

-37,396

with China

* This is slightly larger than imports of China origin because a small proportion of the goods imported from China are produced in other places like Japan, the United States, Taiwan and South Korea.

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