B. BEST PROSPECTS SECTORS FOR U.S. EXPORTERS TO HONG KONG No. Code Sector Description 1 ELC Electronic Components 2 AUT Automobiles 3 TEL* Telecommunications Equipment 4 AIR* Aircraft and Parts 5 PMR Plastic Materials & Resins 6 POL* Pollution Control Equipment 7 CPT* Computers and Peripherals 8 INS Insurance Services 9 CES* Consulting Engineering Services 10 LAB Laboratory Scientific Instruments 11 CSF* Computer Software 12 TRA Travel and Tourism Services 13 ELP* Electric Power Systems 14 MED* Medical Equipment 15 APG Airport and Ground Support Equipment 16 APP* Apparel 17 COS Cosmetics and Toiletries 18 DRG Drugs and Pharmaceuticals 19 CON Construction Equipment 20 APS* Automobile Parts and Service Equipment 21 BOK Books and Periodicals 22 BLD* Building Products 23 SPT* Sporting Goods and Recreational Equipment 24 PKG Packaging Equipment 25 MCS Management Consulting Services for ISO 9000 * Sector Export Prospect (All Figures in Million U.S. Dollar unless otherwise indicated) A. Rank: 1 B. Name of Sector: Electronic Components C. ITA Code: ELC 1993 1994 1995 D. Total Market Size 9,656 10,560 11,515 E. Total Local Production 7,948 8,425 8,846 F. Total Exports 14,042 17,553 21,941 G. Total Imports 15,750 19,688 24,610 H. Total Imports from U.S. 1,890 2,953 3,692 I. Exchange Rate 7.72 7.72 7.72 Comments: The electronics industry is the second largest employer and export earner. In 1992, the industry employed 60,653 workers which was about 11 percent of the total manufacturing employment and accounted for more than one quarter of Hong Kong's exports. Japan is the biggest supplier of electronic parts and components to Hong Kong. While low- end consumer electronics are selling well in South East Asia, many Hong Kong manufacturers have re-oriented production towards high-end products, such as computer and telecommunication equipment, creating an opportunity for U.S. high-end components manufacturers and suppliers. A. Rank: 2 B. Name of Sector: Automobiles C. ITA Code: AUT 1993 1994 1995 D. Total Market Size 2,032 2,377 2,782 E. Total Local Production 0 0 0 F. Total Exports 2,385 2,790 3,265 G. Total Imports 4,417 5,168 6,046 H. Total Imports from U.S. 649 759 888 I. Exchange Rate 7.72 7.72 7.72 Comments: The automobile market is defined by the fact that Hong Kong is a right-hand drive country. As such, U.S. suppliers are at some disadvantage to European and Japanese automakers. One niche that U.S. suppliers may be particularly interested in is electric vehicles. The Hong Kong Government passed legislation in March 1994, which eliminated the 120 percent first registration tax on privately-owned zero-emissions vehicles. This legislation has effectively reduced the net price of electric vehicles to Hong Kong buyers by 60 percent. China Light & Power (CL&P), the Territory's largest utility, as well as the Private Sector Committee for the Environment (PSCE), a group composed of 23 conglomerates, are pushing for the introduction of more electric vehicles into Hong Kong. CL&P and PSCE have compiled a "shopping list" for the PSCE members specifying a total of 100 electric vehicles to be purchased as soon as appropriate suppliers are identified. The market for imported electric vehicles is expected to reach US$5 million/year by 1995. A. Rank: 3 B. Name of Sector: Telecommunications Equipment C. ITA Code: TEL 1993 1994 1995 D. Total Market Size 3,150 3,050 3,010 E. Total Local Production 1,523 1,371 1,302 F. Total Exports 1,790 2,148 2,578 G. Total Imports 3,417 3,827 4,286 H. Total Imports from U.S. 513 574 643 I. Exchange Rate 7.72 7.72 7.72 Comments: Deregulation of the local telecommunication industry opens the door to foreign telephone service providers and equipment manufacturers. TELSTRA (Australia), NYNEX (USA) and US WEST (USA) have teamed up with local consortia to provide fixed lines local telecommunication service starting from July 1, 1995. On September 30, 2006, the exclusive franchise granted to Hong Kong Telephone International will expire, and foreign companies will be invited to provide long distance telephone service. Domestic exports will continue to decline as local telecommunication equipment manufacturers move their plants to China where operational costs are relatively cheaper. Transmission system and networking facilities are the best prospects for U.S. firms for the next few years. A. Rank: 4 B. Name of Sector: Aircraft and Parts C. ITA Code: AIR 1993 1994 1995 D. Total Market Size 715 823 946 E. Total Location Production 0 0 0 F. Total Exports 76 87 100 G. Total Imports 791 910 1,046 H. Total Imports from U.S. 478 550 632 I. Exchange Rate 7.72 7.72 7.72 Comments: The Hong Kong International Airport at Kai Tak is the fourth busiest airport worldwide in terms of international passenger throughput and the third busiest in terms of international air cargo movements. In 1993, Kai Tak handled over 23 million passengers and 1.2 million tons of freight. There are three Hong Kong airlines: Cathay Pacific, Dragon Air, and Air Hong Kong. Together these three airlines possess more than 50 aircraft. This number is expected to reach over 70 by 1996. Currently, all airline maintenance is handled by Hong Kong Aviation Engineering Company (HAECO) at Kai Tak. A. Rank: 5 B. Name of Sector: Plastic Materials & Resins C. ITA Code: PMR 1993 1994 1995 D. Total Market Size 637 668 702 E. Total Local Production 74 77 80 F. Total Exports 3,229 3,552 3,907 G. Total Imports 3,792 4,143 4,529 H. Total Imports from U.S. 467 513 565 I. Exchange Rate 7.72 7.72 7.72 Comments: Plastic raw materials produced in Hong Kong can only satisfy about 20 percent of local demand. The rest have to be imported, mainly from Taiwan, Japan and the U.S. Major local end-users include factories producing toys, packaging materials, shoes, housewares & casings of electrical and electronic consumer goods. Hong Kong is a major world supplier of such consumer products, hence there is a good prospect for exporting plastic raw materials to Hong Kong. A. Rank: 6 B. Name of Sector: Pollution Control Equipment C. ITA Code: POL 1993 1994 1995 D. Total Market Size 384 450 535 E. Total Local Production 20 23 26 F. Total Exports 63 71 79 G. Total Imports 364 427 509 H. Total Imports from U.S. 108 145 197 I. Exchange Rate 7.72 7.72 7.72 Comments: Best prospects for this sector include treatment and monitoring equipment for air pollution control, industrial water pollution control, indoor air pollution control, and contaminated sludge management. The Hong Kong Government's air pollution management program is the best-established section of the Environmental Protection Department. The increasing public pressure for more action in this area has resulted from extensive coverage of air pollution issues in the local media. With regard to water pollution, Hong Kong is expected to declare a Water Control Zone in Hong Kong's Victoria Harbor in late 1994. This declaration will result in the phasing in of effluent controls that will effect up to 9,000 small- and medium- sized factories over the next three years. Tough measures to ensure compliance will take effect in late 1995, creating a significant opportunity for U.S. exporters in 1996. Key industries needing waste water treatment include electroplating, bleaching and dyeing, printed circuit boards, and food processing. A. Rank: 7 B. Name of Sector: Computers and Peripherals C. ITA Code: CPT 1993 1994 1995 D. Total Market Size 1,226 1,137 1,103 E. Total Local Production 765 689 655 F. Total Exports 1,179 1,356 1,627 G. Total Imports 1,640 1,804 2,075 H. Total Imports from U.S. 285 271 298 I. Exchange Rate 7.72 7.72 7.72 Comments: Hong Kong mainly produces lower-price computer products for personal computing applications for home or small business users. In order to stay competitive, many local manufacturers set up joint ventures with their Chinese counterparts to promote computer products in the China market, as well as to conduct R&D. As a result of plants' relocation to China, domestic exports continue to drop. U.S. products, on the other hand are still dominant in the mid-range and main frame market segment, though downsizing continues to be a major trend in the computer industry. A. Rank: 8 B. Name of Sector: Insurance Services C. ITA Code: INS 1993 1994 1995 D. Net Premiums 3,148 3,620 4,163 E. Market Share (percent) - Hong Kong 10 10 10 - USA 30 30 30 F. Exchange Rate 7.72 7.72 7.72 Comments: The insurance industry in Hong Kong comprises two main areas: first, long term business including life insurance and retirement schemes, secondly, general business such as accident, health, motor vehicle and marine. As of December 1993, there were 229 insurance companies in Hong Kong, 40 of which were authorized to do pure long term business, 170 pure general insurance and 19 composite insurance. Gross premiums for individual life insurance and property damage business occupy the largest market shares of long term business and general business respectively. U.S. insurers may consider exploring the life insurance market as this sector is anticipated to demonstrate substantial growth. Nonetheless, general insurers should not neglect the Hong Kong market since it provides them with a channel to get a foothold in China. A. Rank: 9 B. Name of Sector: Consulting Engineering Services C. ITA Code: CES 1993 1994 1995 D. Total Market Size 665 500 300 E. Total Revenue of Locally-owned Firms 264 230 200 F. Total Revenue Earned in Hong Kong from non-Hong Kong Projects 60 85 115 G. Total Imports 401 270 100 H. Total Imports from U.S. 100 83 70 I. Exchange Rate 7.72 7.72 7.72 Comments: The ten core infrastructure projects (roads, airport, land reclamation, subway system, urban development) fast-tracked by the Hong Kong Government have reached the final stages of bidding, resulting in a sharp drop in potential business opportunities for U.S. companies in the near future. One bright spot in this sector is that environmental consulting services are required in Hong Kong's multi-billion dollar environmental infrastructure plans (US$640 million are budgeted for capital and operational expenditures in the environment by the Hong Kong Government in 1994). Major work areas in need of consulting engineering services include: Solid waste management, municipal waste water treatment, and noise and air pollution management programs. A. Rank: 10 B. Name of Sector: Laboratory Scientific Instruments C. ITA Code: LAB 1993 1994 1995 D. Total Market Size 96 106 117 E. Total Local Production 16 18 20 F. Total Exports 857 960 1,074 G. Total Imports 937 1,048 1,171 H. Imports from U.S. 192 215 241 I. Exchange Rate 7.72 7.72 7.72 Comments: Hong Kong provides a growing market for laboratory scientific equipment due to both the policies of the Hong Kong Government and the demands of overseas buyers. Domestically, the Hong Kong Government is committed to providing an economic environment conducive to enhancing the competitiveness of the manufacturing industry by encouraging R & D through support given by government-subvented organizations such as the Technological Innovation and Technology Centre Corporation, Hong Kong Productivity Council, etc. In addition, the Government has operated the Hong Kong Laboratory Accreditation Scheme (HOKLAS). The Scheme aims to upgrade the standard of testing and management of laboratories, to identify and officially recognize competent testing laboratories in the territory and to promote the acceptance of test data from accredited laboratories, both locally and internationally. As such, there is a mounting need for advanced equipment. Externally, Hong Kong is an export-led economy. Overseas buyers usually require Hong Kong manufacturers to have their products tested before exported generating the need for laboratory services and equipment. In short, measuring, checking, analyzing and controlling instruments constitute the largest import categories of laboratory equipment and the USA is a major supplier of these products. A. Rank: 11 B. Name of Sector: Computer Software C. ITA Code: CSF 1993 1994 1995 D. Total Market Size 240 279 314 E. Total Local Production 20 26 31 F. Total Exports N/A N/A N/A G. Total Imports 220 253 283 H. Total Imports from U.S. 172 202 221 I. Exchange Rate 7.72 7.72 7.72 Comments: The financial sector is the largest information technology user; the other major users are manufacturing, trading and distribution, and publishing. American software vendors are the leaders in the local packaged software market. Generally, American software products tend to be good, well-tested products. U.S. software vendors also have the advantage of a large domestic market to help fund and develop activity in markets such as Hong Kong. The U.S. market is also important for other reasons. Users in Hong Kong tend to follow activities in the U.S. market. Distribution of special application software is weak but there is a ready market for U.S. firms which can develop the right marketing strategy. A. Rank: 12 B. Name of Sector: Travel and Tourism Services C. ITA Code: TRA 1993 1994 1995 D. Total Outbound Travel ('000) 24,460 26,900 29,600 - In Terms of Departures E. Estimated Total Spending Abroad* 19,568 23,672 28,652 F. Outbound Travel to USA ('000) 154 169 186 - In Terms of Departures G. Estimated Spending in USA* 123 148 180 H. Exchange Rate 7.72 7.72 7.72 Comments: Hong Kong is a crowded city with a population of 5.9 million. 1993 per capita GDP was $18,553. As the economy becomes more affluent, Hong Kong residents are traveling abroad in record numbers. As nearby Asian locations become saturated, local residents are looking for new destination such as the United States. This is a good opportunity for the U.S. tourism industry to promote itself in a well defined, affluent market. Furthermore, in recent years, emigration has been growing rapidly. The number of persons leaving Hong Kong reached about 70,000 in 1993, with the majority going to Canada. As a result, many people travel to Canada to visit their families and friends during their holidays. These are prospective visitors who can be attracted to spend a few days in the USA on their trips to Canada. * Spending estimates are based on an average length of stay per visitor of 4 days and US$ 200 spending per day. A. Rank: 13 B. Name of Sector: Electrical Power Systems C. ITA Code: ELP 1993 1994 1995 D. Total Market Size 400 500 540 E. Total Local Production 0 0 0 F. Total Exports 1,000 1,250 1,560 G. Total Imports 1,400 1,750 2,100 H. Total Imports from U.S. 120 144 180 I. Exchange Rate 7.72 7.72 7.72 Comments: Thermal power remains the core source of electricity supply both in Hong Kong and China. Demand for thermal power generating equipment including boilers, turbines, generators, etc. will be flat in Hong Kong after the completion of the Lamma 7, 350mw coal-fired unit of Hong Kong Electric Holdings Limited, scheduled for commissioning in late 1995. However, demand for such equipment from China remains strong. China's installed generation capacity has reached 165-170 gigawatts. China is planning to nearly double this to three hundred gigawatts by the year 2000. This represents a need of new investment of $100 billion over the next ten years. In 1993, the market demand for power plant facilities was about $12.4 billion, of which about $3 billion of equipment had to be imported. This leaves plenty of room to foreign power equipment such as boiler, turbine and generator suppliers. A. Rank: 14 B. Name of Sector: Medical Equipment C. ITA Code: MED 1993 1994 1995 D. Total Market Size 121 134 147 E. Local Production N/A N/A N/A F. Total Exports 298 342 393 G. Total Imports 419 475 540 H. Total Imports from U.S. 118 135 155 I. Exchange Rate 7.72 7.72 7.72 Comments: Hong Kong's 5.98 million residents are provided with a comprehensive range of medical and health services by the public and private sectors. As such, there exists a good market for U.S. medical products, particularly high-end diagnostic equipment. There are about 6,800 doctors registered with the Hong Kong Medical Council, with a ratio of 1.1 doctors to 1,000 people. Hong Kong has 37 public hospitals managed by the Hospital Authority and 13 private hospitals, amounting to a total of 26,989 beds. In addition, there are 847 beds in treatment centers in Correctional Institutions and 164 beds in health centers under the Department of Health. A. Rank: 15 B. Name of Sector: Airport and Ground Support Equipment C. ITA Code: APG 1993 1994 1995 D. Total Market Size 50 130 200 E. Total Location Production 0 0 0 F. Total Exports 50 70 100 G. Total Imports 100 200 300 H. Total Imports from U.S. 50 100 150 I. Exchange Rate 7.72 7.72 7.72 Comments: The new Hong Kong airport project continues to progress rapidly. The Provisional Airport Authority (PAA), which is in charge of building the new airport, will award the air cargo handling licenses by the end of 1994 and the fuel supply licenses in 1995. It is expected that there will an enormous demand for airport ground support equipment such as container storage equipment, bulk storage equipment, cargo lifting equipment, and fuel distribution systems over the next few years. A. Rank of Sector: 16 B. Name of Sector: Apparel C. ITA Code: APP 1993 1994 1995 D. Total Market Size 1,132 1,188 1,248 E. Total Production 10,342 10,859 11,402 F. Total Exports 21,040 22,092 23,197 G. Total Imports 11,830 12,421 13,042 H. Total Imports from U.S. 68 72 75 I. Exchange Rate 7.72 7.72 7.72 Comments: Clothing represents the largest single import category among consumer products. While the vast majority of the products (85 percent) come from nearby China, Hong Kong's well off and fashion conscious population is always seeking new sources. To date, U.S. apparel manufacturers have only obtained 0.6 percent of the market compared to Italy, for example, which has 2.8 percent. High-end producers can find a ready market if they move quickly. A. Rank: 17 B. Name of Sector: Cosmetics and Toiletries C. ITA Code: COS 1993 1994 1995 D. Total Market Size 215 265 327 E. Total Local Production 19 21 23 F. Total Exports 189 217 250 G. Total Imports 385 462 554 H. Total Imports from U.S. 59 67 78 I. Exchange Rate 7.72 7.72 7.72 Comments: In March 1993, Hong Kong lifted its 30 percent duty on cosmetics, skin care products, perfumes and toiletries. With the lifting of the 30 percent duty, demand leapt upwards as Hong Kong's 9 million plus annual visitors and 3 million female population took full advantage. At the heart of the region, and adjacent to the emerging China market, Hong Kong remains a strategic marketing and distribution center for the beauty industry. The territory's importance is reflected in the growth of its imports. After expanding 12 percent in 1992, imports of cosmetics and perfumery rose another 20 percent last year to over $380.2 million. A. Rank: 18 B. Name of Sector: Drugs & Pharmaceuticals C. ITA Code: DRG 1993 1994 1995 D. Total Market Size 251 276 304 E. Total Local Production 127 139 153 F. Total Exports 740 925 1,156 G. Total Imports 864 1,062 1,307 H. Total Imports from U.S. 59 67 77 I. Exchange Rate 7.72 7.72 7.72 Comments: U.S. pharmaceutical products are well regarded and welcome in Hong Kong. Pharmaceutical products are distributed through three channels: hospitals, private practitioners and over-the- counter sales. These channels occupy a distribution share of 33 percent, 18 percent and 49 percent respectively. There are 37 public hospitals managed by the Hospital Authority and 13 private hospitals, amounting to 26,989 beds. The population is served by 6,800 doctors and 800 pharmacists. There are 1,500 drugstores in the territory. Hong Kong also re-exports a lot of pharmaceutical products to China. A. Rank: 19 B. Name of Sector: Construction Equipment C. ITA Code: CON 1993 1994 1995 D. Total Market Size 380 456 547 E. Total Location Production 5 6 7 F. Total Exports 688 825 991 G. Total Imports 720 864 1,037 H. Total Imports from U.S. 41 49 59 I. Exchange Rate 7.72 7.72 7.72 Comments: Construction is one of the fastest growing industries in Hong Kong. The Hong Kong Government initiated the Airport Core Program (ACP) in the 1980's. The ACP comprises ten major construction projects including a new airport, a railway, highways, and harbor reclamations. The total value of the entire ACP is estimated at over $25 billion, making it one of the largest infrastructure projects in the world. It is expected that the ACP will continue to generate tremendous demand for construction equipment over the next few years. In addition, commercial and residential construction is expected to grow rapidly as the government releases more land for development. A. Rank: 20 B. Name of Sector: Automobile Parts and Service Equipment C. ITA Code: APS 1993 1994 1995 D. Total Market Size (20) 283 336 E. Total Location Production 32 35 39 F. Total Exports 1,567 1,260 1,508 G. Total Imports 740 888 1,065 H. Total Imports from U.S. 30 36 43 I. Exchange Rate 7.72 7.72 7.72 Comments: Total exports exceeded total imports in 1993 as companies decreased their stocks to meet increasing demand in China. As a result, the total market size was negative. The actual total market or total local consumption was about $240 - 250 million. The import market is expected to grow at an annual rate of 20 percent over the next few years. This growth is substantially supported by demand from automobile manufacturers and parts suppliers in China. Many Chinese companies employ trading companies in Hong Kong as their overseas sourcing agents. It is important to note that Hong Kong re-exports over 80 percent of its imports to China each year. A. Rank: 21 B. Name of Sector: Books and Periodicals C. ITA Code: BOK 1993 1994 1995 D. Total Market Size 1,414 1,555 1,711 E. Total Local Production 1,722 1,894 2,083 F. Total Exports 530 584 642 G. Total Imports 222 245 269 H. Total Imports from U.S. 32 35 38 I. Exchange Rate 7.72 7.72 7.72 Comments: Hong Kong is a regional business service center with a well educated population mostly fluent in English. Business and technical literature are particularly desired. The territory is also a major publishing center, home to 77 daily newspapers and 619 periodicals. The thirty-one Urban Council libraries and 25 Regional Council libraries loaned 15 million books in 1993. A. Rank: 22 B. Name of Sector: Building Products C. ITA Code: BLD 1993 1994 1995 D. Total Market Size 736 883 1,060 E. Total Location Production 350 420 504 F. Total Exports 290 348 417 G. Total Imports 550 660 792 H. Total Imports from U.S. 20 24 29 I. Exchange Rate 7.72 7.72 7.72 Comments: It is expected that building products will continue to be in great demand over the next few years. One of the driving forces for the escalating demand for building products is the Airport Core Program (ACP), which was initiated by the Hong Kong Government in the 1980's. The ACP comprises ten interlinked infrastructure projects, focussed on construction of a new airport to replace the existing Kai Tak Airport. In addition to the new airport, there will be 34 kilometers of new highways, a railway, reclaimed land, and a new town. A. Rank: 23 B. Name of Sector: Sporting Goods & Recreational Equipment C. ITA Code: SPT 1993 1994 1995 D. Total Market Size 30 33 37 E. Total Local Production 142 156 171 F. Total Exports 504 554 610 G. Total Imports 393 432 475 H. Total Imports from U.S. 21 24 26 I. Exchange rate 7.72 7.72 7.72 Comments: In line with its high per capita income, Hong Kong is improving recreational, sporting and cultural facilities to enhance the quality of life. The territory's residents have access to a wide range of leisure activities. The primary customers for sporting goods and recreational equipment suppliers are the Urban Council and Regional Council. These government bodies build and operate game halls, swimming pools and parks, museums, libraries and other recreational facilities, as well as organizing and supporting a host of cultural, sporting and recreational activities. In addition, there are a wide range of private health clubs offering state of the art sports and recreational facilities. A. Rank: 24 B. Name of Sector: Packaging Equipment C. ITA Code: PKG 1993 1994 1995 D. Total Market Size 17 19 20 E. Total Location Production 25 28 31 F. Total Exports 150 166 184 G. Total Imports 75 83 91 H. Total Imports from U.S. 4.8 5.3 5.8 I. Exchange Rate 7.72 7.72 7.72 Comments: The import market is expected to grow at an annual rate of 10 percent over the next few years. This growth is primarily supported by the tremendous demand from provinces in Southern China. Factories in these provinces use trading companies in Hong Kong as their purchasing agents. About 85 percent of total imports are re-exported through trading companies to China each year. A. Rank: 25 B. Name of Sector: Management Consulting Services for ISO 9000 C. ITA Code: MCS 1993 1994 1995 D. Total Market Size 5.5 7.15 9.30 E. Market Size: Hong Kong Firms (percent) 60 60 60 F. Market Size: Foreign Firms (percent) 30 30 30 G. Market Size: U.S. Firms (percent) 10 10 10 H. Exchange Rate 7.72 7.72 7.72 Comments: In Hong Kong, as corporate management is more conscious of profit maximization and the more efficient use of resources, there has been a marked increase in the use of professional management services from different industry sectors, e.g. financial, economic, public relations, advertising, legal, personnel and research. In recent years, ISO 9000, has been held in high regard for upgrading management system. This spells an increasing demand for ISO 9000 consulting services. The Hong Kong Government is determined to promote ISO 9000 across all sectors with the establishment of the Hong Kong Quality Assurance Agency in 1989. It even requires the Housing Department and the Works Branch to do business only with ISO 9000 certified companies. For manufacturers, there is also pressure from overseas buyers who prefer or request their suppliers to conform to ISO 9000 standard. Considering the newness in the popularity of ISO 9000 in Hong Kong and the large number of companies needing certification, there is plenty of room for consulting firms to get into this infant market. The most promising area in Hong Kong for ISO 9000 certification is the manufacturing sector. In this sector, electronics, textile, metal and plastics manufacturing firms are especially keen to be certified. Trading companies, wholesalers and retailers are also prospective customers. The total number of potential customers is estimated at 3,400 and the average consulting fee is $50,000. Agricultural Best Prospects A. Rank of Sector: N/A B. Name of Sector: Poultry Meat C. PS&D Commodity Heading: 1993 1994 1995 (Volume) D. Per Capita Consumption 38.5 KG 39 KG 39.5 KG E. Total Production 17,000 MT 16,000 MT 16,000 MT F. Total Exports* 185,000 MT 195,000 MT 200,000 MT G. Total Imports 396,989 MT 410,000 MT 420,000 MT H. Total Imports from U.S. 219,002 MT 225,000 MT 230,000 MT I. Exchange Rate 7.72 7.72 7.72 * Including Re-exports Comments: In particular, chicken feet are used in traditional Chinese dishes and are extremely popular in this market. Hong Kong also re-exports a high percentage of its poultry meat to China, through the Shenzhen and Zhuhai Special Economic Zones, where tariffs are lower. A. Rank of Sector: N/A B. Name of Sector: Tree Nuts C. PS&D Commodity Heading: 1993 1994 1995 (Volume) D. Total Consumption 4,856,973 KG 4,950,000 KG 5,150,000 KG E. Total Production N/A N/A N/A F. Total Exports* 30,931,027 KG 31,250,000 KG 31,550,000 KG G. Total Imports 35,788,000 KG 36,200,000 KG 36,700,000 KG H. Total Imports from U.S. 4,554,316 KG 5,000,000 KG 5,500,000 KG I. Exchange Rate 7.72 7.72 7.72 * Hong Kong's exports of this agricultural product are calculated as re-export figures, since the territory does not produce a significant amount for export. Comments: Nuts are becoming a favorite snack food, particularly pistachios, which translate from Chinese to "open heart" or "happy" nuts. Pistachios are especially popular in China, where disposable incomes are rising, thus increasing the demand for specialty food snacks. A. Rank of Sector: N/A B. Name of Sector: Frozen Potatoes C. PS&D Commodity Heading: 1993 1994 1995 (Volume) D. Total Consumption 99,457 KG 110,000 KG 122,978 KG E. Total Production N/A N/A N/A F. Total Exports* 12,978 KG 30,000 KG 47,022 KG G. Total Imports 112,435 KG 140,000 KG 170,000 KG H. Total Imports from U.S. 87,676 KG 100,000 KG 120,000 KG I. Exchange Rate 7.72 7.72 7.72 * Hong Kong's exports of this agricultural product are calculated as re-export figures, since the territory does not produce a significant amount for export. Comments: While the U.S. currently holds a large percentage of the frozen french fry potato market in Hong Kong, competitor market promotion activities have increased greatly in recent years. As more women have entered the workplace, frozen foods, such as frozen potatoes, are gaining acceptance in the Chinese kitchen. A. Rank of Sector: N/A B. Name of Sector: Fresh Fruits C. PS&D Commodity Heading: 1993 1994 1995 (Volume) D. Total Consumption 45,044,463 KG 47,000,000 KG 48,999,500 KG E. Total Production N/A N/A N/A F. Total Exports* 2,767,427 KG 3,000,000 KG 3,200,500 KG G. Total Imports 47,811,890 KG 50,000,000 KG 52,200,000 KG H. Total Imports from U.S. 1,115,569 KG 1,300,000 KG 1,500,000 KG I. Exchange Rate 7.72 7.72 7.72 * Hong Kong's exports of this agricultural product are calculated as re-export figures, since the territory does not produce a significant amount for export. Comments: The Agricultural Trade Office has increased efforts to open up the fresh fruit market in Hong Kong and the region. While oranges remain popular and in demand, Washington Apples have recently made their way into the China market, and hopefully other U.S. fruits will follow. In the re-export market, a large percentage of U.S. table grapes are currently re-exported to the Philippines. A. Rank of Sector: N/A B. Name of Sector: Hides & Furskins C. PS&D Commodity Heading: 1993 1994 1995 (Volume) D. Total Consumption 11,915,184 KG 12,000,000 KG 12,200,000 KG E. Total Production N/A N/A N/A F. Total Exports* 84,455,787 KG 89,000,000 KG 93,500,000 KG G. Total Imports 96,370,971 KG 101,000,000 KG 105,700,000 KG H. Total Imports from U.S. 17,248,181 KG 18,000,000 KG 18,800,000 KG I. Exchange Rate 7.72 7.72 7.72 * Hong Kong's exports of this agricultural product are calculated as re-export figures, since the territory does not produce a significant amount for export. Comments: Since Hong Kong produces only an insignificant quantity of cow-hides from imported Chinese live beef cattle, all exports of hides and skins are re-exports. The territory is an important entrepot for hides and furskins and host the world's second largest hide and leather show every year. A. Rank of Sector: N/A B. Name of Sector: Ice Cream C. PS&D Commodity Heading: 1993 1994 1995 (Volume) D. Total Consumption 6,445,630 KG 7,020,000 KG 7,610,000 KG E. Total Production 2,000,000 KG 2,200,000 KG 2,400,000 KG F. Total Exports* 368,147 KG 380,000 KG 390,000 KG G. Total Imports 4,813,777 KG 5,200,000 KG 5,600,000 KG H. Total Imports from U.S. 2,309,111 KG 2,360,000 KG 2,500,000 KG I. Exchange Rate 7.72 7.72 7.72 * Hong Kong's exports of this agricultural product are calculated as re-export figures, since the territory does not produce a significant amount for export. Comments: U.S. dairy products have not traditionally been strong in this market which has been dominated by dairy products from the Netherlands or New Zealand. However, the American Dreyer's and Haagen-Dazs ice cream has made progress in Hong Kong supermarkets, and studies show that ice cream is very popular among consumers. There is also potential in the frozen yoghurt market, which was opened up by the U.S. a few years ago, and remains to be further targeted.