In the first quarter of 2010, 32% of Hong Kong's total exports to the mainland of China (the Mainland) were for outward processing.  The proportion was 19% for domestic exports and 32% for re-exports.  On the other hand, 52% of Hong Kong's imports from the Mainland were related to outward processing, according to statistics released today (June 17) by the Census and Statistics Department (C&SD).  Over the same period, 73% of Hong Kong's re-exports of the 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 2009 were 33% for total exports, 31% for domestic exports and 33% for re-exports; while proportions for imports from the Mainland and for re-exports of the Mainland origin to other places were 51% and 72% respectively.

     In value terms, $106.0 billion of Hong Kong's total exports to the Mainland in the first quarter of 2010 were for outward processing, representing an increase of 35% over the first quarter of 2009.  The value of domestic exports to the Mainland for outward processing decreased by 18% to $1.4 billion while the value of re-exports to the Mainland for outward processing increased by 37% to $104.6 billion.  Over the same period of comparison, the value of imports from the Mainland related to outward processing increased by 28% to $165.5 billion.  On the other hand, $166.4 billion of Hong Kong's re-exports of the Mainland origin to other places were produced through outward processing in the Mainland, representing an increase of 11%.

     The statistics for the first quarter of 2010 and their percentage changes over the same period in 2009 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 the 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 the 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.

Table 

     Enquiries on the survey results may be directed to the Trade Surveys and Research Section of the C&SD (Tel. : 2582 5503).

Ends

June 18, 2010