Commerce and Industry 117
productivity and quality through technology and management improvement. The Government, however, does not subsidise any specific industries.
With the weight of the Hong Kong economy shifting towards knowledge-based and higher value-added activities, the Government puts increasing emphasis on promoting innovation and technological improvement in industry and business. It aims to strengthen support for technology development and application, develop a critical mass of fine scientists and engineers, skilled technicians and venture capitalists, and encourage the development of a significant cluster of technology- based businesses.
Merchandise Trade Performance
With continued growth in the Mainland economy and a visible pick-up in the global economy, Hong Kong was witness to a notable growth in external trade in 2004. Total merchandise trade increased by 16.4 per cent to $4,130.2 billion. Domestic exports increased by 3.5 per cent to $126 billion, while re-exports rose by 16.8 per cent to $1,893.1 billion. Imports increased by 16.9 per cent to $2,111.1 billion. The year recorded a trade deficit of $92 billion, greater than the corresponding deficit of $63.4 billion in 2003. The Appendices provide summary statistics of external trade.
In 2004, Hong Kong's largest trading partners were the Mainland of China (the Mainland), followed by the United States of America (USA) and Japan.
In 2004, Hong Kong was the world's 11th largest trading entity in terms of value of merchandise trade.
Imports
Imports of raw materials and semi-manufactures, at $805.2 billion in 2004, constituted the largest share of total imports. This was followed by consumer goods ($631.8 billion), capital goods ($565.4 billion), foodstuffs ($60.1 billion) and fuels ($48.6 billion).
In 2004, the Mainland, Japan and Taiwan were Hong Kong's major suppliers, accounting for 43.5 per cent, 12.1 per cent and 7.3 per cent of the total value of imports, respectively.
Domestic Exports
Articles of apparel and clothing accessories continued to be the largest component of domestic exports, valued at $63.4 billion or 50.3 per cent of the total value of domestic exports in 2004. At $13.1 billion, electrical machinery, apparatus and appliances, and electrical parts thereof came second. Other major export items included jewellery, goldsmiths' and silversmiths' wares, and other articles of precious or semi-precious materials; textile yarn, fabrics, made-up articles and related products; office machines and automatic data processing machines; and plastics in primary form.