ENG-1995 — Page 125

TRADE AND INDUSTRY

External Trade

Hong Kong is the world's eighth-largest trading entity in terms of value of merchandise trade; the fifth-largest if all member countries of the European Union are taken as one entity. With total exports at $1,342 billion and imports at $1,488 billion, Hong Kong recorded a trade deficit of $147 billion in 1995.

Its largest trading partner is China, followed by the United States of America and Japan. Appendices 17, 18 and 19 provide summary statistics of external trade.

Imports

Hong Kong is almost entirely dependent on imported resources to meet the needs of its six million people and its diverse industries. Consumer goods, at $562 billion in 1995, constituted the largest share of total imports. Imports of raw material and semi- manufactured goods, at $543 billion, came second. This was followed by capital goods, foodstuffs and fuels.

China, Japan and Taiwan were the main suppliers of Hong Kong's imports in 1995, providing 36 per cent, 15 per cent and 9 per cent, respectively, of the total.

Domestic Exports

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Clothing remained the largest component of domestic exports, valued at $74 billion, or 32 per cent of the total, in 1995. This percentage share has remained stable over the past decade. At $32 billion, electrical machinery, apparatus and appliances, made up another 14 per cent of the total. Other important exports included office machines and automatic data processing machines; photographic apparatus, equipment and supplies and optical goods; and textiles.

The pattern and level of Hong Kong's export trade are closely linked to the economic conditions and commercial policies in major overseas markets. In 1995, China, the USA and Singapore were Hong Kong's largest markets, taking up 27 per cent, 26 per cent and five per cent of Hong Kong's domestic exports, respectively.

Re-exports

Re-exports showed a significant increase in 1995, reflecting the continued importance of Hong Kong as an entrepôt for China. Hong Kong's re-exports in 1995 accounted for 83 per cent of the value of total exports.

Principal commodities re-exported included telecommunications and sound re- cording and reproducing apparatus and equipment ($120 billion or 11 per cent of the total) and electrical machinery, apparatus and appliances ($114 billion or 10 per cent of the total). Other important re-exports included textiles, clothing and baby carriages, toys, games and sporting goods. China, Japan and Taiwan were the main origins of the re-exports, while the largest re-export markets were China, the USA and Japan.

The Manufacturing Sector

Restructuring of the manufacturing sector reduced its contribution to GDP from 18 per cent in 1990 to about 10 per cent in 1994, but it continued to be an important sector of the economy. The sector was the territory's second-largest employer, employing 386 106 persons (15.3 per cent) of total employment in 1995. Due to mechanisation, automation, and relocation of labour-intensive and lower-value-

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