ENG-1980 — Page 41

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INDUSTRY AND TRADE

Hong Kong is almost entirely dependent on imported resources to meet the needs of its 5.1 million people and the requirements of its diverse industries. In 1980, imports of raw materials and semi-manufactured goods totalled $46,489 million, representing 42 per cent of the year's total imports. The principal items imported were fabrics of man-made fibres ($4,430 million), plastic moulding materials ($2,605 million), watch and clock movements, cases and parts ($3,688 million), iron and steel ($3,426 million), woven cotton fabrics ($2,641 million), and transistors, diodes and semi-conductor integrated circuits ($1,927 million).

Imports of consumer goods, valued at $29,469 million, constituted 26 per cent of total imports. Local demand remained strong for diamonds ($4,178 million), clothing ($3,461 million), radios, television sets, gramophones, records and tape recorders ($2,744 million), watches ($2,137 million), jade and precious stones, ivory, jewellery, and goldsmiths' and silversmiths' wares ($1,502 million).

Imports of capital goods totalled $16,055 million, representing 14 per cent of total imports. Imported capital goods consisted mainly of items such as electronic components and parts for machines ($2,823 million), transport equipment ($3,079 million), electrical machinery ($1,669 million), textile machinery ($765 million), miscellaneous industrial machinery ($788 million) and office machines ($731 million).

Imports of foodstuffs amounted to $12,065 million, or 11 per cent of total imports. The principal imported food items were fish and fish preparations ($1,750 million), fruit ($1,614 million), meat and meat preparations ($1,475 million), swine ($1,170 million) and vegetables ($1,231 million). Imports of mineral fuels, lubricants and related materials were valued at $7,573 million, representing seven per cent of total imports.

Japan continued to be the principal supplier of imports in 1980, providing 23 per cent of the total. China was the second major supplying source, accounting for 20 per cent of total imports and 47 per cent of all imported food and live animals. The United States contributed another 12 per cent of total imports. Other important sources included Taiwan, Singapore, Britain, South Korea, the Federal Republic of Germany and Switzerland.

Domestic exports consisted almost entirely of manufactured goods. Clothing, valued at $23,258 million, remained the largest sector although its share of the total domestic exports further dropped to 34 per cent from last year's 36 per cent. Sales of miscellaneous manu- factured articles, consisting mainly of plastic toys and dolls, jewellery and goldsmiths' and silversmiths' wares, and plastic flowers, were valued at $11,020 million, representing 16 per cent of total domestic exports. Photographic apparatus, equipment and supplies, optical goods, watches and clocks were valued at $7,119 million, contributing an additional 10 per cent to the total. Domestic exports of telecommunications and sound recording and reproducing apparatus and equipment, at $5,030 million, made up a further seven per cent of the total. Other important exports included textiles, electrical and non-electrical house- hold-type equipment, diodes, transistors and similar semi-conductor devices, electronic microcircuits, office machines, metal products and travel goods.

The direction and level of Hong Kong's export trade are both largely influenced by econo- mic conditions and commercial policies in the territory's major overseas markets. In 1980, 62 per cent of all domestic exports went to the United States and the European Economic Community (EEC). The United States alone absorbed 33 per cent. The Federal Republic of Germany and Britain, Hong Kong's second and third largest overseas markets, absorbed 11 per cent and 10 per cent, respectively. Domestic exports to China rose rapidly during the year, amounting to $1,605 million or two per cent of the total. Other important markets were Japan, Australia, Singapore, the Netherlands and Canada. Exports to members of the organisation of Petroleum Exporting Countries (OPEC) continued to grow in 1980.