Hong Kong’s exports have faced the largest decline in decades. Long-time trade in re-exporting electronic parts, particularly integrated circuits generating foreign currency, was likely impacted by U.S.-China trade sanctions and the U.S. restrictions on the Chinese Communist Party (CCP)’s semiconductor industry. Figures released by the Census and Statistics Department in Hong Kong showed exports recorded negative year-on-year growth for the last eight months, with the December 2022 figure showing a year-on-year drop of 28.9 percent, the largest reduction since 1954. At the same time, imports to Hong Kong decreased by 23.5 percent, leaving a balance of payments deficit of HK$51.65 billion (approximately $6.58 billion). Exports for the whole year fell 8.6 percent, while imports dropped 7.2 percent.
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