Textile restrictions on Mainland, a blessing in disguise for HK

15 Oct '05

4 min read

Hong Kong is dramatically benefiting from the decision of the European Union and the US government to reimpose quotas and restrictions on apparel and textile imports from mainland China, senior industry executives confirmed in Hong Kong on 6 October.

The Special Administrative Region (SAR) could enjoy a significant revival as a manufacturing base if some form of quota system remains in place through to 2009 and beyond.

Felix Chung, Chairman of the Hong Kong Apparel Society, told a press conference at Interstoff Asia: "Hong Kong manufacturers are in a more positive situation than the Chinese because there are no limitations on exports and because we are benefiting from the OPA [Outwards Processing Arrangements] system, which gives us a flexible way of producing."

OPA allows manufacturers to claim their goods are made in Hong Kong, provided some work on the goods takes place there.

Hong Kong's textile and clothing re-exports to the EU and the US rose 80 per cent and 33 per cent, respectively, from April through July, according to the Hong Kong Trade and Industry Department.

Combined re-exports to the two markets totalled HK$57.2bn ($7.3bn) in the second quarter of 2005, up 49 per cent from a year earlier.

But to maintain the pace of development, the SAR urgently needs skilled labour with the technical expertise to revive manufacturing. In recent weeks, it has emerged that the Hong Kong government is actively considering a more flexible approach to allowing specialist labour from the mainland into Hong Kong.

More Textiles News - Australia...