China's trade with Taiwan plunged by more than 55 percent in January year-on-year, while trade with Hong Kong fell 37 percent during the same month, state media reported Tuesday.
The large fall in trade was largely due to the global financial crisis which led to a dramatic drop in imports from Taiwan and exports to Hong Kong, Xinhua news agency said.
China's imports from Taiwan in January were valued at 3.9 billion dollars, down 58 percent from a year ago, while exports to Hong Kong fell by 35.4 percent to 9.5 billion dollars during the month, it said.
"The mainland buys semi-manufactured or manufactured products from Taiwan to use in its exports to developed markets such as North America and Europe," the report quoted Song Hong, an economist with the Chinese Academy of Social Sciences, as saying.
"Hong Kong mainly serves as a transit station in the mainland's exports to developed countries, which are hit the most by the crisis."
China's trade with Taiwan in January totalled 5.03 billion dollars, while trade with Hong Kong was valued at 9.99 billion dollars, it said.
Utilisation of Hong Kong investment into China in January also slid 6.2 percent to 3.91 billion dollars, the report said, while Taiwan investment into the mainland fell to 110 million dollars, down 55.6 percent.
