ALMOST half of Hong Kong's total exports to China were for outward processing in the first quarter of this year, according to Census and Statistics Department. During the same period, 76 per cent of the territory's imports from the mainland were related to outward processing. In value terms, $47.29 billion of Hong Kong's total exports to China in the first three months were for outward processing, representing an increase of 35 per cent over the first quarter of 1994. The value of imports from China related to outward processing jumped 21 per cent to $87.73 billion. Exports, including domestic exports and re-exports, to China for outward processing refers to the export of raw materials or semi-manufactured goods from or through Hong Kong to the mainland for processing, with a contractual arrangement for subsequent exports of the processed goods to the territory. Imports from China related to outward processing refer to the imports of processed goods from China. A department spokesman said that under the accepted system of recording trade flows, all movements of goods, except for transshipment and goods-in-transit, across the border, whether for outward processing or not, were recorded as external trade. The movement of goods associated with outward processing was included in the regular trade statistics.
