Title:	Trading Firms with Manufacturing-related Activities (Released on 22/2/2005)
Latest Issue:	-
Release Date:	22 February 2005
Frequency:	Ad Hoc
Language:	Bilingual (Chinese and English)
Enquiry:	Tel: (852) 2123 1036 Fax: (852) 2802 1367 E-mail: asw@censtatd.gov.hk
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Abstract

The Hong Kong economy has been undergoing structural changes in the past two decades. Driven by the open economic policies of China, many Hong Kong manufacturers have relocated their manufacturing processes to the mainland of China (Mainland). Some import and export firms in Hong Kong also operate factories in the Mainland. Through the sub-contract processing arrangement in the mainland of China (SPAC), Hong Kong entrepreneurs take advantage of the abundant labour and land resources in the Mainland. Many of the firms which have moved their manufacturing processes to the Mainland continue to operate in Hong Kong as import and export firms. These firms also provide manufacturing-related technical support services, e.g. product design, sample and mould making, production planning, to the associated manufacturing firms in the Mainland. Feature articles addressing this subject have been published in the HKMDS regularly since 1995. This feature article provides an update of the above development.

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