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In the first quarter of 2007, 37% of Hong Kong's total exports to the mainland of China (the Mainland) were for outward processing. The proportion was 44% for domestic exports and 37% for re-exports. On the other hand, 64% of Hong Kong's imports from the Mainland were related to outward processing, according to statistics released today (June 21) by the Census and Statistics Department (C&SD).
Over the same period, 77% of Hong Kong's re-exports of Mainland origin to other places were produced through outward processing in the Mainland.
The corresponding proportions for exports to the Mainland in the first quarter of 2006 were 34% for total exports, 51% for domestic exports and 34% for re-exports; while proportions for imports from the Mainland and for re-exports of Mainland origin to other places were 66% and 79% respectively.
In value terms, $103.3 billion of Hong Kong's total exports to the Mainland in the first quarter of 2007 were for outward processing, representing a significant increase of 21% over the first quarter of 2006. The value of domestic exports to the Mainland for outward processing fell significantly by 21% to $3.7 billion while the value of re-exports to the Mainland for outward processing went up sharply by 23% to $99.6 billion. Over the same period of comparison, the value of imports from the Mainland related to outward processing increased by 7% to $180.4 billion. On the other hand, $180.7 billion of Hong Kong's re exports of Mainland origin to other places were produced through outward processing in the Mainland, representing an increase of 4%.
The estimates for the first quarter of 2007 and the corresponding changes over the same period in 2006 are summarised in the attached table.
Information on trade involving outward processing in the Mainland is collected in a sample survey conducted by the C&SD. For the purpose of the survey, exports to the Mainland for outward processing refer to raw materials or semi manufactures exported from or through Hong Kong to the Mainland for processing with a contractual arrangement for subsequent re-importation of the processed goods into Hong Kong.
Imports from the Mainland related to outward processing refer to processed goods imported from the Mainland, of which all or part of the raw materials or semi manufactures have been under contractual arrangement exported from or through Hong Kong to the Mainland for processing.
Re-exports of Mainland origin to other places involving outward processing in the Mainland refer to processed goods re-exported through Hong Kong, of which all or part of the raw materials or semi-manufactures have been exported from or through Hong Kong to the Mainland for processing with a contractual arrangement for subsequent re-importation of the processed goods into Hong Kong.
In interpreting the statistics, it should be noted that the value and proportion of imports from the Mainland and re-exports of Mainland origin to other places involving outward processing in the Mainland refer to those of the entire goods instead of just the value added contributed by outward processing in the Mainland.
A sample of import/export declarations in respect of Hong Kong's trade with the Mainland and Hong Kong's re-exports originated in the Mainland to other places is selected for enumeration to obtain the required information from the establishments concerned. All imports and exports of goods (not including transhipments and goods-in-transit) are recorded as external trade, irrespective of whether the goods are associated with outward processing or not. The findings of the survey, however, facilitate a more informed analysis of the nature of Hong Kong's trade with the Mainland. In this respect, the survey results are a useful supplement to the regular trade statistics.
The above survey results will be included in the June 2007 issue of the "Hong Kong External Merchandise Trade". The publication, in download version, will be available in mid-August 2007. Users can download this publication free of charge at the Website of the C&SD (www.censtatd.gov.hk/products_and_services/products/publications/index.jsp).
Print version of this publication will also be available for sale at HK$92 per issue in mid-August 2007. Purchase can be done in person at the Publications Unit of the C&SD (Address: 19/F Wanchai Tower, 12 Harbour Road, Wan Chai; Tel: 2582 3025) or through mail order by returning a completed order form which can be downloaded from the C&SD's website (www.censtatd.gov.hk/products_and_services/other_services/provision_of_stat/mail_ordering_of_publications/index.jsp). Print version of this publication is also available for sale online at the Statistical Bookstore (www.statisticalbookstore.gov.hk) and the Government Bookstore of the Information Services Department (www.bookstore.gov.hk). Print versions if purchased online are offered a discount, at 85% of their original prices.
Enquiries on the survey results may be directed to the Trade Surveys and Research Section of the C&SD (Tel: 2582 5503).
Ends/Thursday, June 21, 2007
Issued at HKT 16:15
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