XN000022-1996-08-15 — Page 5

The scope of the survey has been extended as from the first quarter of 1989 to segregate Hong Kong's imports from China into those which are related to outward processing and those which are not. Starting from the first quarter of 1991, the scope of the survey has further been extended to cover Hong Kong's re-exports of China origin to all countries other than China.

The results for the first quarter of 1996 are now available.

In value terms, $45,483 million of Hong Kong's total exports to China in the first quarter of 1996 were for outward processing, representing a decrease of 4% over the first quarter of 1995. The value of domestic exports to China for outward processing decreased by 1% to $8,915 million while the value of re-exports to China for outward processing dropped by 4% to $36,568 million.

Over the same period of comparison, the value of imports from China related to outward processing increased by 12% to $98,117 million. On the other hand, $116,587 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 11%.

For the purpose of the survey, exports to China for outward processing refer to raw materials or semi-manufactures exported from or through Hong Kong to China for processing with a contractual arrangement for subsequent re-importation of the processed goods into Hong Kong.

Imports from China related to outward processing refer to processed goods imported from China of which all or part of the raw materials or semi-manufactures have been under contractual arrangement exported from or through Hong Kong to China for processing.

Re-exports of China origin to all countries other than China involving outward processing in China refer to processed goods re-exported through Hong Kong of which all or part of the raw materials or semi-manufactures have been exported from or through Hong Kong to China for processing with a contractual arrangement for subsequent re-importation of the processed goods into Hong Kong.

In interpreting the statistics, it should be noted that the value and proportion of imports from China and re-exports of China origin to all countries other than China involving outward processing in China refer to those of the entire goods instead of just the value added contributed by outward processing in China.