Economic and Trade Information

About Hong Kong

Hong Kong's Trade and Economic Relations with Taiwan

Points-to-Note:

  1. The average annual growth rate in bilateral trade between Hong Kong and Taiwan from 2014 to 2018 was 2.8%. The total trade increased by 1.3% in 2018.
  2. In 2018, Taiwan was Hong Kong's third largest trading partner; fifth largest market for domestic exports; fifth largest market for re-exports; and second largest source of imports.
  3. According to statistics published by Taiwan #, Hong Kong was Taiwan's fourth largest trading partner, second largest export market and 28th largest source of imports in 2018.
  4. Hong Kong is an important entrepôt for Cross-Strait indirect trade. Indirect trade increased by 14.9% in 2018. In 2018, HK$401 billion (US$51.2 billion) worth of trade between Mainland China and Taiwan was routed through Hong Kong, representing around 22% of the total trade between Mainland China and Taiwan.
  5. # Source: "Bureau of Foreign Trade" of Taiwan

Summary of Hong Kong's Trade with Taiwan

Value in million
2017 % Change
over 2016
2018 % Change
over 2017
(a) Domestic Exports HK$2,079
(US$267)
+12.9 HK$2,469
(US$315)
+18.7
(b) Re-exports HK$87,292
(US$11,200)
+20.1 HK$83,703
(US$10,678)
-4.1
- of Mainland origin HK$39,014
(US$5,006)
44.7%*
+13.2 HK$39,123
(US$4,991)
46.7%*
+0.3
(c) Total Exports
[(a)+(b)]
HK$89,371
(US$11,467)
+19.9 HK$86,172
(US$10,993)
-3.6
(d) Imports HK$329,678
(US$42,299)
+12.9 HK$338,445
(US$43,175)
+2.7
(e) Total Trade
[(c)+(d)]
HK$419,050
(US$53,766)
+14.3 HK$424,617
(US$54,167)
+1.3
(f) Balance of Trade
[(c)-(d)]
-HK$240,307
(-US$30,832)
-HK$252,273
(-US$32,182)
*Figures denote percentage share of Mainland-origin re-exports in Total Re-exports.

Economic Indicators

Hong Kong#
2015 2016 2017
Population (million) 7.3 7.4 7.4
Current GDP(US$ billion) 309 321 341
Current GDP per capita (US$) 42,431 43,739 46,189
Real GDP growth (% change) 2.4 2.2 3.8
CPI (% change) 3.0 2.4 1.5
Unemployment (%) 3.3 3.4 3.1
# Source: Hong Kong Census and Statistics Department.

Essential Facts on Trade between Hong Kong and Taiwan

Domestic Exports

In 2018, Hong Kong's major domestic export items to Taiwan were metalliferous ore and metal scrap (30.6%); jewelry, goldsmiths’ and silversmiths’ wares, and other articles of precious or semi-precious materials (17.8%); and non-ferrous metals (10.3%).

Re-exports

In 2018, Hong Kong's major re-export items to Taiwan were electrical machinery, apparatus and appliances, and electrical parts thereof (40.3%); meat and meat preparations (12.5%); and office machines and automatic data processing machines (10.7%).

Imports

In 2018, Hong Kong's major import items from Taiwan were electrical machinery, apparatus and appliances, and electrical parts thereof (75.1%); office machines and automatic data processing machines (4.5%); and telecommunications and sound recording and reproducing apparatus and equipment (4.1%).

Bilateral Trade of Services

  1. Between 2013 and 2017, the average annual growth rate of Hong Kong’s exports of services to Taiwan was -4.0%. In 2017, the value of total exports of services to Taiwan increased by 8.3% to HK$27.9 billion (US$3.6 billion) as compared to the previous year, equivalent to 3.5% of Hong Kong's total exports of services. Major items of exports of services include transport, travel and financial services.
  2. From 2013 and 2017, the average annual growth rate of Hong Kong’s imports of services from Taiwan was 1.6%. In 2017, the values of total imports of services from Taiwan increased by 7.3% to HK$25.5 billion (US$3.3 billion) as compared to the previous year, equivalent to 4.3% of Hong Kong's total imports of services. Major items of services imports include travel, transport and other business services.

Bilateral Investment

  1. At the end of 2017, Taiwan was the 11thmajor source of inward direct investment (IDI) into Hong Kong, with an IDI stock of HK$100.9 billion (US$12.9 billion). The IDI flow from Taiwan was -HK$4.6 billion** (-US$0.6 billion) in 2017.
  2. At the end of 2017, Taiwan was outside the 20thmajor destination of outward direct investment (ODI) from Hong Kong. As such, relevant investment data are not released by Hong Kong Census and Statistics Department.
  3. As of June 2017, 19 regional headquarters, 109 regional offices and 253 local offices were set up by Taiwanese companies in Hong Kong.

** Negative inflow does not necessarily relate to equity withdrawal, it may be the result of repayment of loans owed to non-resident affiliates.

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