ENG-1992 — Page 97

INDUSTRY AND TRADE

the electronic gateway between the trading community and the relevant government departments, checking and validating electronic submissions before passing them through for approval.

Tradelink will also establish a way for non-computer users to access the service. In this way, both government and the wider trading community can enjoy the full benefits of electronic data interchange as rapidly as possible. An initial service is expected to commence in mid-1994. The service will bring about a significant increase in the number of companies using electronic data interchange and will help generate more demand for other electronic trading services.

In the interest of compatibility, the government agreed that the United Nations Electronic Data Interchange for Administration, Commerce and Transport, a standard language developed by the United Nations for electronic trading, will be adopted for government transactions wherever applicable.

The Industrial Scene

Hong Kong enjoys a worldwide reputation as a producer and exporter of manufactured consumer goods. Although the territory has a thriving construction industry and, as a major trading economy, has developed shipbuilding, ship repair and aircraft engineering industries, light manufacturing industries predominate. About 8.0 per cent of Hong Kong's manufactured products are exported, and clothing, electronic products, watches and clocks, textiles, and plastic products (particularly toys) have for many years accounted for the bulk of this output. The total value of Hong Kong's manufactured exports in 1992 was $234,123 million, and its major export markets were the United States (27.6 per cent), China (26.5 per cent), Germany (6.8 per cent), and the United Kingdom (5.4 per cent). In 1991, the territory was the world's largest exporter (including domestic exports and re- exports) by value of clothing and toys and games, and the second largest exporter of watches.

Manufacturing developed on a large scale in Hong Kong in the 1950s. The territory's small size limited the amount of land which could be made available for industry and precluded the development of heavy or land-intensive industries; its manufacturing industries were therefore characterised by small-scale firms, mostly operating from premises in multi-storey buildings, and manufacturing light consumer goods for export.

For many years, manufacturing was both the territory's largest employer and its most important economic sector, but lost this dominating position in the 1980s. Manufacturing employment fell from 904 709 in 1984 (41.7 per cent of total employment) to 571 181 (23.3 per cent) in 1992, and its contribution to the Gross Domestic Product (GDP) fell from 24.1 per cent in 1984 to 15.5 per cent in 1991. During these years manufacturers took advantage of China's open door policy to shift labour-intensive jobs into China to reap the benefits of the lower land and labour costs there. Manufacturing is now the territory's second largest employer, and makes the third largest contribution to GDP after financial and business services.

There were 41 937 manufacturing establishments in Hong Kong in 1992, of which 36 381 employed fewer than 20 persons, and 39 882 fewer than 50 persons. The remaining 2 055 establishments accounted for more than half Hong Kong's total manufacturing employ- ment. Many smaller establishments are linked with larger factories through an efficient and flexible subcontracting network, which has enabled Hong Kong's manufacturing sector to respond swiftly to changes in external demand.

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