TNAG-0584-FCO40-717-Trade-relations-between-UK-and-Hong-Kong-(other-than-EEC)-1976 — Page 22

8.

BRITISH EXPORTS TO HONG KONG

According to the Trade Commission's records about 4,000

British companies are represented in one way or another in Hong Kong and

some 120 manufacturing, trading and insurance companies as well as

banks and consultants have branches or their own representatives here

Despite this, the growth in the value of British exports over the past

10-15 years has not kept pace with the growth in the Colony's imports

and the British share of the overall market has fallen. There are a

number of reasons for this:

(i)

British industry's share of the world market for manufactured

goods has, for one reason or another, fallen. This is

reflected in Hong Kong, as elsewhere.

(ii)

The move towards industrialisation in countries such as

Taiwan and Korea has added to the competition from Japan.

It is likely that Hong Kong will import increasingly from

countries in the region.

(iii) Britain exports into a narrow segment of the market; this

segment has probably expanded at a slower rate than Hong

Kong's overall imports. Broadly speaking, Hong Kong's imports are made up of raw material and semi-manufactures (44%), foodstuffs (21%), consumer goods (15%), capital goods (13%)

exports and fuels (7%); British /are concentrated in the narrow capital goods sector and the top end of the foodstuffs and consumer goods market. In the large raw materials and semi-manufacturers

:

•

/sector,..