TNAG-1873-FCO40-2661-Relations-between-Hong-Kong-and-China-1989 — Page 33

CONFIDENTIAL

機密

CRC INF 9/89

(CEC 4/89)

Background

Indirect Trade Between

China and Taiwan via Hong Kong

Both China and Taiwan feature prominently in

Hong Kong's re-export trade. Their respective importance can be summarised in the table below :

Ranking as a source

of Hong Kong's

re-exports

China

1st since 1959*

Taiwan

3rd since 1988

Ranking as a market for Hong Kong's

re-exports

1st since 1980

4th since 1986

* The first year that re-exports can be

distinguished from domestic exports in Hong Kong's trade statistics.

2.

One major factor contributing to the increasing importance of both China and Taiwan in Hong Kong's re-exports in recent years has been the rapid growth of

indirect trade between China and Taiwan via Hong Kong. Apart from the efficient infrastructural facilities found in Hong Kong, both politics and geography have been important in providing the necessary impetus to such rapid

growth.

3.

Neither China nor Taiwan has published estimates

of the amount of indirect trade between themselves. Thus

the best estimate so far available is from Hong Kong's

trade statistics which include re-exports broken down by

sources and markets. Indirect trade in this context is

defined as re-exports of China origin to Taiwan and re-exports of Taiwan origin to China.

CONFIDENTIAL

機密