also contributed. Among the major categories of products, domestic exports of clothing (accounting for about 42% of total domestic exports to this market) and watches and clocks (accounting for 6응) grew in real terms, while those of
electronic components (accounting for 68%) and domestic electrical appliances (accounting for 5%) decreased. The rate
(3) of utilization of quota
for textiles and clothing as a whole was 46% at the end of June 1986, compared with 44% at the end of June 1985.
2.3
Reflecting the effect of China's tightening of control over its foreign exchange spending, the year-on-year growth rate of domestic exports to China, after having peaked in the first quarter of 1985, slowed down significantly during the rest of the year, and this trend
and this trend continued into the first
half of 1986. At $7,349 million, the value of domestic
exports to China in the first half of 1986 was 7% lower than
in the first half of 1985 (4). Trade indices available up to
May 1986 suggest that there was an estimated increase of 2% in
prices, implying a fall of about 9% in real terms over this
period. Domestic exports to China comprised mainly semi- manufactures, reflecting the significance of the compensation
/trade
(3)
(4)
The quota utilization rate gives the quantity licensed as a percentage of the quota restraint limit. The quantity licensed will be reflected in the quota utilization rate once approval of an application for export licence is granted. Since an export licence is normally valid for twenty-eight days or three months upon request, the quantity licensed in a particular month may not be equal to the quantity actually shipped in that month, depending on the time lags involved. For domestic exports to the United States, textiles account for about 18% of the quota base in respect of textiles and clothing. (For the United Kingdom and the Federal Republic of Germany, the proportions are about 34% and 6% respectively.)
China has become the second largest market for domestic exports since the second quarter of 1984.
7
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