TNAG-2292-FCO40-3304-Official-visits-from-Hong-Kong-to-China-1991 — Page 31

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27.

On top of the high level recorded in 1990, the

value of Hong Kong's re-exports of China origin showed a

further substantial increase, by 31% in the first half of

this year over the same period last year. During the first

half of 1991, 93% of Hong Kong's imports of China origin

were subsequently re-exported. The continued rapid growth

in re-exports of China origin was largely due to the

expansion in outward processing activities, apart from the

efforts spent by the Chinese government

in promoting

China's own exports. Feedback from Hong Kong manufacturers

reveals that nearly all of those who are engaged in outward

processing arrangements prefer to have the finished

products returned to Hong Kong and then shipped out as

re-exports of China origin, rather than shipping the goods

out directly from China. Inadequate port facilities and

infrequent shipping schedules are the major obstacles in

exporting the goods directly at China's ports. Besides,

some Hong Kong manufacturers have production bases in

different locations of China. They have to consolidate the

goods from different production plants before sending them

to overseas markets.

28.

In the first half of 1991, the share of retained

imports from China in Hong Kong's total retained imports

declined to only 5.4%, from 6.9% for the whole of 1990.

Among Hong Kong's major sources of retained imports in that

period, the ranking of China fell to the sixth, after

Japan, the United States, Taiwan, South Korea and

Singapore(32),

While Hong Kong's total retained imports

(32) In the first half of 1991, Japan accounted for 25.9% of Hong Kong's retained imports, followed by the United States at 12.1%, Taiwan at 11.6%, South Korea at 7.1%, Singapore at 6.3%, and China at 5.4%.

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