ENG-1998 — Page 138

TRADE AND INDUSTRY

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and to strengthen technological collaboration between Hong Kong and the Mainland of China. The government has accepted these recommendations and the commission is examining other issues with a view to submitting a final report by June 1999.

Trade and industrial policies are kept under review by the Trade and Industry Bureau of the Government Secretariat. The Secretary for Trade and Industry is advised on industry matters by the Industry and Technology Development Council and on trade issues by the Trade Advisory Board and the Textiles Advisory Board. Members of these bodies include prominent industrialists and businessmen, representatives of major industrial and trade organisations and relevant government officials.

External Trade

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Hong Kong's external trade declined in 1998 amid regional financial turmoil. Its total trade decreased by 9.6 per cent over the previous year. Re-exports fell by 6.9 per cent to $1,159.2 billion, and domestic exports by 10.9 per cent to $188.5 billion. Imports also declined by 11.5 per cent to $1,429.1 billion.

In 1997, Hong Kong was the world's eighth-largest trading entity in terms of value of merchandise trade. In 1998, it recorded a trade deficit of $81.4 billion. This was much smaller than the corresponding deficit of $159.1 billion in 1997.

Its largest trading partner is the mainland of China, followed by the USA and Japan. Appendices 20, 21 and 22 provide summary statistics of external trade.

Imports

Consumer goods, at $511.3 billion in 1998, constituted the largest share of total imports. This was followed by raw materials and semi-manufactured goods ($483.5 billion) and capital goods, foodstuffs and fuels ($434.4 billion).

The mainland of China, Japan and the USA were the main suppliers of Hong Kong's imports in 1998, accounting for 40.6 per cent, 12.6 per cent and 7.5 per cent of the total imports, respectively.

Domestic Exports

Clothing continued to be the largest component of domestic exports, valued at $74.9 billion or 39.7 per cent of the total in 1998. At $26.7 billion, electrical machinery, apparatus and appliances came second.

In 1998, the Mainland, the USA and the UK were Hong Kong's largest markets, absorbing 29.8 per cent, 29.1 per cent and 5.3 per cent of total domestic exports, respectively.

Re-exports

Principal commodities re-exported included electrical machinery, apparatus and appliances ($132 billion or 11.4 per cent of the total) and telecommunications and sound recording and reproducing apparatus and equipment ($114.3 billion or 9.9 per cent of the total). The Mainland, Japan and Taiwan were the main origins of the re-exports, while the largest re-export markets were the Mainland, the USA and Japan.