TNAG-1873-FCO40-2661-Relations-between-Hong-Kong-and-China-1989 — Page 34

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4.

In 1988 Hong Kong's total re-exports amounted to

HK$275 billion. Indirect trade between China and Taiwan

amounted to HK$21.2 billion or 7.7% of the total, compared

with HK$0.4 billion or 1.9% of the total in 1979 - the

year when China started to open its door to foreign trade

and investment. In more recent years, outward processing

activities between Hong Kong and China which may involve

the re-exports of raw materials and semi-manufactures of

Taiwan origin to China through Hong Kong is another factor

contributing to the growth of this indirect trade.

Re-exports of China origin to Taiwan.

5.

In 1988 re-exports of China origin amounted to

HK$132 billion or 48% of Hong Kong's total re-exports. Of re-exports of China origin, 3% or HK$3.7 billion were

re-exported to Taiwan. While this share was not

particularly large, the absolute value was substantial and

growing quite rapidly (33.4% p.a.). The value of

re-exports of China origin to Taiwan in 1979 was only HK$0.3 billion or 5% of Hong Kong's re-exports of China origin in that year. Thus, despite the rapid growth, their share in re-exports of China origin has fallen.

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