Textile industry to remain unaffected by trade row between Sino – EU
07 Jun '05
1 min read
Hong Kong government officials and industry veterans said that the dispute between China and the EU over textiles would have very little impact on its textile industry and economy.
Commenting over the increasing textile trade friction between the two, the government economist Kwok Kwok-chuen stated the impact was varied or could be proven advantageous to Hong Kong to some extent.
Kwok Kwok-chuen said, "The mainland's textile re-exports through Hong Kong only accounted for 4 per cent of the SAR's total exports last year."
The uncertainty prevailing over the trade dispute may prompt some manufacturers to relocate units back to Hong Kong that might boost its textile industry, he added.
Domestic demand accounts for 70 percent of textile industry growth, and as Hong Kong's economy turns more consumer driven instead of investment driven, the domestic market will consume most of its production outputs.
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