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Statistics on trade involving outward processing in the mainland of China, third quarter 2014
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     In the third quarter of 2014, 30% of Hong Kong's total exports to the mainland of China (the Mainland) were for outward processing. The proportion was 17% for domestic exports and 30% for re-exports. On the other hand, 36% of Hong Kong's imports from the Mainland were related to outward processing, according to statistics released today (December 18) by the Census and Statistics Department (C&SD). Over the same period, 67% 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 third quarter of 2013 were 33% for total exports, 18% for domestic exports and 33% for re-exports; while the proportions for imports from the Mainland and for re-exports of Mainland origin to other places were 37% and 75% respectively.

     In January-September of 2014, 30% of Hong Kong's total exports to the Mainland were for outward processing; the figure was 15% for domestic exports and 30% for re-exports. On the other hand, 37% of Hong Kong's imports from the Mainland were related to outward processing. Over the same period, 70% of Hong Kong's re-exports of Mainland origin to other places were produced through outward processing in the Mainland.

     The corresponding proportions in January-September of 2013 were 31% for total exports to the Mainland, 17% for domestic exports to the Mainland, 31% for re-exports to the Mainland, 38% for imports from the Mainland and 73% for re-exports of Mainland origin to other places.

     In value terms, $157.3 billion of Hong Kong's total exports to the Mainland in the third quarter of 2014 were for outward processing, representing a decrease of 5% compared with the third quarter of 2013. The value of domestic exports to the Mainland for outward processing decreased by 14% to $1.0 billion while the value of re-exports to the Mainland for outward processing decreased by 5% to $156.2 billion. Over the same period of comparison, the value of imports from the Mainland related to outward processing increased by 2% to $190.2 billion. On the other hand, $226.7 billion of Hong Kong's re-exports of Mainland origin to other places were produced through outward processing in the Mainland, representing a decrease of 6% compared with the third quarter of 2013.

     In January-September of 2014, $432.4 billion of Hong Kong's total exports to the Mainland were for outward processing, representing a decrease of 2% compared with January-September of 2013. The value of domestic exports to the Mainland for outward processing decreased by 12% to $2.8 billion while that of re-exports to the Mainland for outward processing decreased by 2% to $429.6 billion. Over the same period of comparison, the value of imports from the Mainland related to outward processing increased by 2% to $539.7 billion. On the other hand, $641.4 billion of Hong Kong's re-exports of Mainland origin to other places were produced through outward processing in the Mainland, which represents a slight increase of 0.1% compared with January-September of 2013.

     The statistics for the third quarter and January-September of 2014 and their percentage changes over the same period in 2013 are given 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 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. Moreover, 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. The findings of the survey 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 December 2014 issue of the Hong Kong External Merchandise Trade. The publication will be available in mid-February 2015. Users can download this publication free of charge from the website of the C&SD (www.censtatd.gov.hk/hkstat/sub/sp230.jsp?productCode=B1020005).

     Enquiries on the survey results may be directed to the Electronic Trading Services and Research Section of the C&SD (Tel: 2582 2126).

Ends/Thursday, December 18, 2014
Issued at HKT 16:31

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