NFIDENTIAL & Z
23
29.
Putting the trade figures into perspective, the value of Hong Kong's imports from China in the second quarter of 1987, at HK$29,110 million (US$3,730 million), exceeded the value of Hong Kong's total exports to China, at HK$21,080 million (US$2,701 million). As a result, there was a visible trade deficit of HK$8,031 million (US$1,029 million) with China. This compares with a visible trade deficit of HK$5,774 million (US$740 million) in the second quarter of 1986.
1987 Q2 (HK$Mn)
1987 H1 (HK$Mn)
Domestic exports to China
6,852
12,403
Re-exports to China
14,228
26,037
Total exports to China
21,080
38,440
Imports from China
29,110
52,283
Visible trade balance
with China
-8,031
-13,843
30.
To a
In the first half of 1987, Hong Kong overtook Japan to become China's largest trading partner. large extent, the surge in the trade flows was related to the rapid increase in outward processing activities. During the first half of this year, China's exports to Hong Kong (and Macau) accounted for 35% of its total exports. In the other direction, China's imports from Hong Kong (and Macau) accounted for 19% of its total imports. Trading relationships between Hong Kong and the southern provinces in China are particularly close. 1986, trade with Hong Kong accounted for 70% of Guangdong's total trade. In some localities like Foshan and Dongguan, this proportion was as high as 90%.
In
C.F 326
CONFIDENTIAL #
No comments yet.
Private notes are available after approval.