Hong Kong Government Office 香港政府駐英辦事處
6 Grafton Street London WIX 3LB
Background Briefing Paper
UK Exports of Manufactures to Hong Kong
Comparative Performance 1981-1991
The usual perception of the UK as a supplier to Hong Kong is gained from its share of Hong Kong's total imports ('A' in the table overleaf), which share has declined from 4.6% in 1981 to 2.1% in 1991, a loss of over one half.
2.
Given that e.g. the UK does not supply oil to Hong Kong (nor the EEC dump agricultural surpluses in Hong Kong), what is of more significance is the UK's share of Hong Kong's imports of manufactures ('B' in the table overleaf), which has declined from 5.5% in 1981 to 2.0% in 1991, a greater loss of nearly two thirds. The share of manufactures (SITC 5-8) in Hong Kong's total merchandise imports is rising, but, at first sight, the UK performance in this sector with the highest potential is falling more than in general.
3.
Given the interdependence of the Hong Kong and Chinese economies, particularly following the PRC 'open door' policy since, say 1979, it is at least arguable that Hong Kong's trade with China is of a different nature to that with overseas suppliers. This is certainly the case with outward processing trade, where there is probably an element of double counting in Hong Kong's trade statistics. If trade with China is discounted, the UK's share of Hong Kong's imports of manufactures from overseas suppliers, i.e. global imports less imports from China, ('C' in the table overleaf) declined from 6.7% in 1981 to 3.3% in 1991, a loss of one half. The UK's apparent worse performance in manufactures as compared with total trade, as shown in para 2 above, was due to the increase in Hong Kong's trade in manufactures with China. In fact, the UK performance in manufactures, after discounting China, is not declining as fast as in total trade.
4.
Comparing the UK performance in manufactures with other main industrial suppliers (Japan, USA, Germany, Italy, France and Canada), the UK share of the Hong Kong market held by these suppliers ('D' in the table overleaf) has fallen from 10.7% in 1981 to 6.3% in 1991, a fall of 40%. This is less than the fall in para 3 above, so part of the UK performance loss is due to Hong Kong disproportionately increasing its imports of manufactures from suppliers other than the main industrial suppliers and China.
5.
Nevertheless, the UK share of Hong Kong's imports of manufactures has been declining since 1982. There was a particularly marked fall in 1988, but the decline since then has been in line with the general trend.
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Hong Kong Government Office August 1992
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