Hong Kong Textile Industry

has two primary components: (1) garment manufacturing on the island and in mainland China; and (2) the provision of central services in connection with the China trade in textiles. The

textile industry of Hong Kong is already undergoing and will continue during the coming decade to experience a difficult

period of adjustment to changing international political and economic developments which may limit the attractiveness of the

industry to private investors from outside mainland China.

Cline (1990) defines the textile industry as one which

"encompasses the production of yarns, fabric (primarily for use

in apparel), and finished goods such as bedding and carpets as well as industrial materials such as fabric for tires" (p. 26).

The textile industry of Hong Kong is almost exclusively involved

in the clothing and apparel business and the fibers, natural and

Hong Kong is a leading exporter of domestically manufactured yarn and fabrics and finished clothing and apparel. It is also a reexporter of textiles, primarily those sourced in and/or

assembled in the People's Republic of China. Unlike its principal Asian competitors, Hong Kong imports all of the raw materi

. . .
export values, MFA quotas will be reduced by 16 percent in Stage 1 which starts on July 1, 1995, by 17 percent in Stage 2 which starts on January 1, 1998, by 18 percent in Stage 3 which starts on January 1, 2000 and the balance in Stage 4 which ends on July 1, 1995 (Waller, 1994, p. 69). The GATT tariff reductions and quota eliminations represent an enormous potential long term opportunity for East Asian textile exporters. GATT economists predict that the world market for textiles and apparel, currently approximately $250 billion, will increased by 60 percent in the case of clothing and 34 percent in the case of other textiles by the year 2005. Waller (1994) states that for East Asian textile exporters "as a region of mostly fastgrowing, tradeoriented economies . . . gains are likely to be disproportionately high" (p. 64). Hong Kong textile and apparel exporters are likely to suffer intermediate term detriments as well as to reap benefits under the new GATT treaty. As Chau Takhand, the Hong Kong Secretary of Trade and Industry has said: "We have been able to maintain a garment industry mainly because of [MFA] quotas." He added: "We should not keep industries artificially alive" (Waller, 1994, p. 69). As
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Some common words found in the essay are:
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Approximate Word count = 4415
Approximate Pages = 18 (250 words per page)

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