ENG-2000 — Page 140

COMMERCE AND INDUSTRY

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Hong Kong ranked as the world's 10th largest trading entity in 1999, in terms of value of merchandise trade.

In 2000, Hong Kong's largest trading partner was the Mainland, followed by the United States of America (USA) and Japan. There was a trade deficit of $85.3 billion, much larger than the corresponding deficit of $43.7 billion in 1999. The Appendices provide summary statistics of external trade.

Imports

Imports of raw materials and semi-manufactures, valued at $580.2 billion, constituted the largest share of total imports in 2000. Next were consumer goods ($566.9 billion) and capital goods, foodstuffs and fuels ($510.8 billion).

The Mainland, Japan and Taiwan were Hong Kong's major suppliers in 2000, accounting for 43.1 per cent, 12 per cent and 7.5 per cent of the total value of imports, respectively.

Domestic Exports

Clothing continued to be the largest component of domestic exports, valued at $77.4 billion or 42.8 per cent of the total value of domestic exports in 2000. At $28.5 billion, electrical machinery, apparatus and appliances came second.

The Mainland, the USA and the United Kingdom (UK) were Hong Kong's largest markets in 2000, absorbing 30.1 per cent, 29.9 per cent and 5.9 per cent of the total value of domestic exports, respectively.

Re-exports

Principal commodities re-exported in 2000 were electrical machinery, apparatus and appliances ($220.6 billion or 15.9 per cent of the total value of re-exports), as well as telecommunications and sound recording and reproducing apparatus and equipment ($148.7 billion or 10.7 per cent of the total value of re-exports). The Mainland, Japan and Taiwan were the main origins of the re-exports while the Mainland, the USA and Japan were the main destinations.

The Manufacturing Sector

Automation, technology upgrading and relocation of lower value-added operations to the Mainland have accelerated the development of more knowledge-based and higher value-added manufacturing, as well as manufacturing-related services or producer services. Expansion of manufacturing activities offshore since the 1980s has also turned Hong Kong into a strategic control centre of an increasingly globalised production network. In spite of the structural change, the manufacturing sector remained an important sector of the economy providing employment to 229 445 persons (9.8 per cent of the total private sector employees) in 2000.

The clothing industry was the largest employer in the manufacturing sector in 2000, followed by the printing, publishing and allied industries. Chart 1 shows the breakdown of employment within the manufacturing sector in 2000.