ENG-1996 — Page 138

TRADE AND INDUSTRY

94

counted as a single entity. In 1996, it recorded a trade deficit of $138 billion with total exports at $1,398 billion and imports at $1,536 billion.

Its largest trading partner is China, followed by the USA and Japan. Appendices 18, 19 and 20 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 $573 billion in 1996, constituted the largest share of total imports. This was followed by raw materials and semi-manufactured goods ($541 billion) and capital goods, foodstuffs and fuels ($422 billion).

China, Japan and Taiwan remained the main suppliers of Hong Kong's imports in 1996, accounting for 37 per cent, 14 per cent and 8 per cent of the total, respectively.

Domestic Exports

Clothing continued to be the largest component of domestic exports, valued at $69 billion or 33 per cent of the total in 1996. This percentage has remained stable over the past decade. At $30 billion, electrical machinery, apparatus and appliances came second. Other important exports included office machines and automatic data processing machines; photographic apparatus, equipment and supplies and optical goods; and textiles.

The pattern and volume of Hong Kong's export trade are closely related to the economic conditions and commercial policies of its major overseas markets. In 1996, China, the USA and Germay were Hong Kong's largest markets, absorbing 29 per cent, 25 per cent and 5.4 per cent of total domestic exports, respectively.

Re-exports

Re-exports registered moderate growth in 1996. Re-exports made up 85 per cent of the value of total exports, reflecting the continued importance of Hong Kong as an entrepôt for China.

Principal commodities re-exported included electrical machinery, apparatus and appliances ($124 billion or 10 per cent of the total) and telecommunications and sound recording and reproducing apparatus and equipment ($116 billion or 9.8 per cent of the total). Other major 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, with China, the USA and Japan the major destinations.

The Manufacturing Sector

Restructuring of the manufacturing sector reduced its contribution to GDP from 18 per cent in 1990 to about 9 per cent in 1995, but it continued to be an important sector of the economy. The sector was the territory's third-largest employer, employing 327 464 persons (12.9 per cent of the total employment) in 1996. Mechanisation, automation and relocation of assembly-type operations to China have accelerated the development of more knowledge-based and higher-value-added manufacturing.