In January - September 1996, 48% of Hong Kong's total exports to China were for outward processing; the figure was 73% for domestic exports, and 45% for re- exports. On the other hand, 80% of Hong Kong's imports from China were related to outward processing.
Over the same period, 86% of Hong Kong's re-exports of China origin to all countries other than China were produced through outward processing in China.
The corresponding proportions in January - September of 1995 were 49% for total exports to China, 71% for domestic exports to China, 45% for re-exports to China, 75% for imports from China and 82% for re-exports of China origin to all countries other than China.
To provide a better understanding of the nature and importance of outward processing in China initiated by Hong Kong firms, the Census & Statistics Department has been conducting a sample survey as from the third quarter of 1988 to distinguish Hong Kong's exports to China into those which are for outward processing and those which are not.
The scope of the survey has been extended to cover Hong Kong's imports from China and Hong Kong's re-exports of China origin to all countries other than China as from 1989 and 1991 respectively.
The results for the third quarter and January - September 1996 are now available.
In value terms, $62,122 million of Hong Kong's total exports to China in the third quarter of 1996 were for outward processing, representing an increase of 11% over the third quarter of 1995. The value of domestic exports to China for outward processing decreased by 6% to $11,528 million whilst the value of re-exports to China for outward processing grew by 15% to $50,594 million.
Over the same period of comparison, the value of imports from China related to outward processing increased by 11% to $126,749 million. On the other hand, $163,124 million of Hong Kong's re-exports of China origin to all countries other than China were produced through outward processing in China, representing an increase of 18%.