|
Mainland China & Hong Kong
Hong Kong and The Mainland China are
each other’s
major trading partners
| • |
Since the Mainland embarked on its modernization programme, its share of Hong Kong's global trade had increased significantly from 9.3% in 1978 to 47.5% (HK$2.638.0 billion or US$338.2 billion) in 2007. It has been Hong Kong's largest trading partner since 1985. |
| |
|
| • |
Hong Kong was the Mainland's third largest trading partner (after the US and Japan (Note 1)) in 2007. Trade between the Mainland and Hong Kong in 2007 accounted for 9.1% of the Mainland's total trade. |
Hong Kong is aN IMPORTANT
market for The Mainland China goods
| • |
Hong Kong was the Mainland's second largest export market, taking up 15.1% (HK$1,438.8 billion or US$184.4 billion) of its total exports in 2007. |
| |
|
| • |
The value of Hong Kong's total imports from the Mainland was HK$1,329.7 billion (US$170.4 billion), accounting for 46.4% of Hong Kong's total imports in 2007. |
| |
|
| • |
Hong Kong was a major market for goods exported from the Mainland in 2007:
| |
|
| • |
Machinery and mechanical appliances, sound equipment, parts and accessories thereof (No. 1, HK$881.2 billion or US$113.0 billion); |
| |
|
| • |
Optical instruments, medical or surgical instruments, parts and accessories thereof (No. 1, HK$95.9 billion or US$12.3 billion); |
| |
|
| • |
Articles of apparel and clothing accessories (No. 3, HK$69.5 billion or US$8.9 billion); |
| |
|
| • |
Textiles and textile articles, except clothing (No. 1, HK$68.9 billion or US$8.8 billion); |
| |
|
| • |
Toys, games and sports requisites, parts and accessories thereof (No. 2, HK$34.9 billion or US$4.5 billion); |
| |
|
| • |
Pearls, precious stones, precious metals, imitation jewellery, coin (No. 1, HK$35.2 billion or US$4.5 billion); |
| |
|
| • |
Plastics and articles thereof (No. 2, HK$27.1 billion or US$3.5 billion); |
| |
|
| • |
Clocks and watches, parts thereof (No. 1, HK$8.8 billion or US$1.1 billion). |
|
| |
|
| • |
In 2007, the ratio of Hong Kong's domestic exports to the Mainland to Hong Kong's imports from the Mainland was 1:33. |
| |
|
| • |
The Mainland has been Hong Kong's largest supplier in goods since 1982. In 2007, it was Hong Kong's:
| |
|
| • |
top supplier of consumer goods (62.6% of total, HK$476.9 billion or US$61.1 billion); raw materials and semi-manufactures (30.5% of total, HK$334.6 billion or US$42.9 billion); capital goods (57.0% of total, HK$480.1 billion or US$61.5 billion); and foodstuffs (23.8% of total, HK$18.4 billion or US$2.4 billion);
|
| |
|
| • |
second largest supplier of fuels (after Singapore) (22.3% of total, HK$19.6 billion or US$2.5 billion). |
|
The Mainland China as a market
for Hong Kong goods
| • |
In 2007, the Mainland was Hong Kong's largest domestic export market, absorbing HK$40.6 billion (US$5.2 billion) worth of goods, or 37.2% of Hong Kong's total. |
| |
|
| • |
Hong Kong was the Mainland's eighteenth largest source of imports in 2007, accounting for 1.3% (HK$100.0 billion or US$12.8 billion) of the Mainland’s total imports. |
| |
|
| • |
Hong Kong's major domestic export items to the Mainland in 2007 were:
| |
|
| • |
articles of apparel and clothing accessories (25.2% of Hong Kong's total domestic exports to the Mainland, amounting to HK$10.2 billion or US$1.3 billion); |
| |
|
| • |
plastics in primary forms (14.1%, HK$5.7 billion or US$0.7 billion); |
| |
|
| • |
electrical machinery, apparatus and appliances (10.8%, HK$4.4 billion or US$0.6 billion). |
|
Hong Kong is an important
entrepÔt for The mainland
| • |
Re-exports of Mainland-origin goods through Hong Kong increased by 84.9% from HK$864.0 billion (US$110.8 billion) in 2002 to HK$l,597.8 billion (US$204.8 billion) in 2007. Goods re-exported to the Mainland through Hong Kong increased by 121.7% from HK$571.9 billion (US$73.3 billion) in 2002 to HK$1,267.7 billion (US$162.5 billion) in 2007. |
| |
|
| • |
In 2007, the major destinations for Hong Kong's re-exports of Mainland-origin goods included: |
| |
|
| |
| World |
1,597.8 |
(204.8) |
100% |
| US |
314.5 |
(40.3) |
19.7% |
| EU (Note 2) |
314.5 |
(40.3) |
19.7% |
| Japan |
102.9 |
(13.2) |
6.4% |
| Singapore |
31.6 |
(4.0) |
2.0% |
| Republic of Korea |
30.3 |
(3.9) |
1.9% |
|
| |
|
| • |
In 2007, the major suppliers of Hong Kong's re-exports to the Mainland included: |
| |
|
| |
| World |
1,267.7 |
(162.5) |
100% |
| Japan |
177.5 |
(22.8) |
14.0% |
| Taiwan Province |
165.4 |
(21.2) |
13.0% |
| EU (Note 2) |
81.7 |
(10.5) |
6.4% |
| Republic of Korea |
78.0 |
(10.0) |
6.2% |
| US |
53.8 |
(6.9) |
4.2% |
|
The Mainland as a base
for outward processing activities
| • |
Since the launching of its modernization policy, the Mainland of China has set up several Special Economic Zones in its southern provinces. The Guangdong Province, with its improved investment environment, infrastructure, and proximity to Hong Kong, is an important location for Hong Kong's manufacturers to conduct outward processing activities. (Note 3) |
| |
|
| • |
In 2007, 34.5% of Hong Kong's total exports to the Mainland were for outward processing, reaching HK$451.5 billion (US$57.9 billion). In the same year, 58.6% of Hong Kong's imports from the Mainland were related to outward processing, amounting to HK$780.0 billion (US$100.0 billion). |
| |
|
| • |
Dongguan, Shenzhen and Guangzhou are popular cities for outward processing trade. |
Hong Kong is an important
location for The Mainland interests
| • |
The Mainland was the largest source of inward direct investment in Hong Kong. At end-2006, the cumulative value of such investment was estimated at HK$2,024.3 billion (US$260.4 billion), accounting for 35% of Hong Kong's total stock. |
| |
|
| • |
As at 1 June 2007, 93 companies from the Mainland had set up regional headquarters in Hong Kong. They were mainly engaged in wholesale, retail and import/export trades, finance and banking, business services, transport and related services, construction, architectural and civil engineering, information technology and real estate, etc. Another 152 companies had set up regional offices in Hong Kong to oversee business activities in the region. |
| |
|
| • |
As at 31 December 2007, 12 of the 142 licensed banks in Hong Kong were of Mainland interests. In the deposit-taking business, 2 restricted of the 29 restricted licence banks and 2 of the 29 deposit-taking companies were of Mainland interests. |
Hong Kong as the largest
foreign investor in The Mainland
| • |
Hong Kong has been the Mainland's largest source of realized foreign direct investment, accounting for about 40% of the national total, with a cumulative value of HK$2,398.5 billion (US$307.5 billion) at end-2007. |
| |
|
| • |
Hong Kong's investments in the Mainland concentrate largely in the Guangdong Province. At end-2007, the cumulative value of Hong Kong's realized direct investment in Guangdong was estimated at HK$940.3 billion (US$120.5 billion), accounting for 62% of Guangdong's total. According to the statistics of Guangdong Province, more than 99,000 Hong Kong-invested enterprises have been approved by the Guangdong Province at end 2007. |
| |
|
| • |
Hong Kong's investments in the Mainland in the early years were mainly industrial investment, involving primarily outward processing arrangements. Over the years, Hong Kong businessmen have extended the scope of their investments in the Mainland to other sectors such as communications, hotel and tourist-related services, real estate, retail trade, catering, and infrastructural facilities. |
| |
|
| • |
According to a survey conducted by the Federation of Hong Kong Industries in 2007, Hong Kong-related enterprises in the nine cities of the Pearl River Delta of the Guangdong Province hire around 9.6 million employees. |
HONG KONG PRACTISES FREE TRADE
| • |
Hong Kong is a staunch supporter of the multilateral trading system and adheres to the WTO/GATT principles of non-discrimination and most-favoured-nation treatment. Hong Kong takes seriously its rights and obligations as a Member of the WTO. Our free trade policy applies to both merchandise trade as well as trade in services. |
| |
|
| • |
Hong Kong was ranked the freest economy in the world in the US Heritage Foundation 2008 Index of Economic Freedom. |
| |
|
| • |
Hong Kong does not subsidize its exports or any particular sector of the economy. |
| |
|
| • |
Hong Kong does not levy any tariffs. As an internal tax to raise revenue, excise duties are levied on imported as well as domestically produced cigarettes and tobacco, alcoholic products, methyl alcohol and some hydrocarbon oils. In 2007, less than 2% of all imports were subject to excise duties. |
| |
|
| • |
Hong Kong maintains a level playing field for foreign and local companies. Hong Kong maintains no barriers to trade. |
Exchange rate: According to the statistics from the Census and Statistics Department of the Hong Kong Special Administrative Region Government
US$1 = HK$7,801 (2007 approximate average rate)
US$1 = HKS7.799 (2002 approximate average rate)
|
