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 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%.

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.