VERMENT HOUSE HUNG KUNG.
WEN 10 Ser JL UJTJ1
UNCLASSIFIED
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Hong Kong's Economic Relations with Taiwan
(See also figures in Annexes)
Taiwan is a major trading partner of HK. Ranked 4th
in 1991 with total trade HK$105.4 b or 6.8% of
overall trade; first six months of 1992, HK$57.5 b.
HK is an important entrepot for trading between China
and Taiwan. In 1991, indirect trade between China and
Taiwan passing through Hong Kong amounted to HK$45,2 b
representing 8.4% of HK's total re-exports. While no statistics on China-Taiwan trade has been published, it is believed that nearly all of these two-way trade flows have passed through HK. The value of these indirect trade through HK increased at a very rapid rate of 43% per annum during the five years from 1986
to 1991.
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Major domestic exports include manufactured tobacco
(20% of total domestic exports to Taiwan in 1991), electronic components (13%) and parts for office data processing machines (12%).
Major re-exports are manufactured tobacco (21% of
total re-exports to Taiwan in 1991) and electronic
components (16%).
Major imports include textiles and related products
(32% of total imports from Taiwan in 1991) electrical
machinery and parts (12%) and artificial resins and
plastic materials (10%).
Taiwan has become an increasingly important source of foreign investment in China. Most of the investment