TNAG-2478-FCO40-3608-Trade-relations-between-Hong-Kong--the-UK-and-other-countrie-1992 — Page 11

VERMENT HOUSE HUNG KUNG.

WEN 10 Ser JL UJTJ1

UNCLASSIFIED

1.

2.

Hong Kong's Economic Relations with Taiwan

(See also figures in Annexes)

Taiwan is a major trading partner of HK. Ranked 4th

in 1991 with total trade HK$105.4 b or 6.8% of

overall trade; first six months of 1992, HK$57.5 b.

HK is an important entrepot for trading between China

and Taiwan. In 1991, indirect trade between China and

Taiwan passing through Hong Kong amounted to HK$45,2 b

representing 8.4% of HK's total re-exports. While no statistics on China-Taiwan trade has been published, it is believed that nearly all of these two-way trade flows have passed through HK. The value of these indirect trade through HK increased at a very rapid rate of 43% per annum during the five years from 1986

to 1991.

3.

4.

5.

6.

Major domestic exports include manufactured tobacco

(20% of total domestic exports to Taiwan in 1991), electronic components (13%) and parts for office data processing machines (12%).

Major re-exports are manufactured tobacco (21% of

total re-exports to Taiwan in 1991) and electronic

components (16%).

Major imports include textiles and related products

(32% of total imports from Taiwan in 1991) electrical

machinery and parts (12%) and artificial resins and

plastic materials (10%).

Taiwan has become an increasingly important source of foreign investment in China. Most of the investment