Outward processing exports to the Mainland slow down

Hong Kong exports to mainland China for outward processing fell slightly during the 4th quarter of 2011 year-on-year.

The Census & Statistics Department said that of Hong Kong's total exports, 33% were for outward processing, a 1% drop from the same period in 2010.

Of the 33%, 15% were for domestic exports and 33% for re-export. The comparable data for the fourth quarter of 2010 was 17% for domestic exports and 35% for re-exports

Outward processing is the temporary export of goods for further processing or repair under special customs arrangements.

During the fourth quarter of 2011, 47% of imports from the Mainland were related to outward processing. On the other hand, 71% of re-exports of Mainland origin to other places were produced through outward processing on the Mainland.

In value terms, $148.2 billion of total exports to the Mainland in the fourth quarter of 2011 were for outward processing, an increase of 5% over the fourth quarter of 2010.

The value of exports to the Mainland for outward processing fell 23% to $1.1 billion while the value of re-exports to the Mainland for outward processing increased 5% to $147.2 billion.

In the same period, the value of imports from the Mainland related to outward processing increased 2% to $205.2 billion. On the other hand, $219.8 billion of Hong Kong's re-exports of Mainland origin to other places were produced through outward processing in the Mainland, a 1% decline.