As China's 15th Five-Year Plan emphasizes upgrading traditional industries, Hong Kong's textile sector is actively repositioning itself. On July 14, industry stakeholders jointly released a report proposing six development strategies. This is not merely an industry suggestion but a critical signal of Hong Kong's intent to redefine its role amid global supply chain restructuring.
Core Strategy: From Trade Hub to Industrial Empowerment Platform
The report's core logic is that Hong Kong should no longer be just an intermediary between the mainland and overseas markets but should upgrade to a 'super value-adder'. The study, conducted by HKUST's Li & Fung Supply Chain Research Institute with guidance from the China National Textile and Apparel Council (CNTAC), indicates it is already aligned with national industrial upgrading goals.
The six strategies target Hong Kong's existing weaknesses and future potential. First, it suggests upgrading the 'Clothing Industry Training Authority' into an executive body for industry coordination and a liaison window with national authorities. This seeks a more efficient government-industry channel to quickly capture national policy dividends. Second, financially, it recommends including 'sourcing centers' and 'sourcing activities' in the definition of multinational corporate treasury hubs, creating a 'CTC+ model'. This has profound implications for supply chain finance—trade financing needs from sourcing activities could attract more financial resources, revitalizing the SME ecosystem that has long relied on low-cost financing.
Talent and Landmarks: Building 'Soft Power' for an International Fashion Hub
Henry Law, President of the Hong Kong Textile Council, proposed an open-talent policy: 'Whoever comes is a Hong Kong enterprise; whoever lands is a Hong Kong talent.' This breaks traditional residency restrictions, aiming to attract international designers to deeply integrate with local supply chains. For mainland factories, this offers direct access to cutting-edge design, potentially fostering more ODM collaborations.
Proposals to turn Sham Shui Po into a fashion district and expand flagship events like 'Hong Kong Fashion Fest' show Hong Kong's ambition to enhance global fashion discourse through 'fashion + culture' crossover. This sets a model for mainland brands going global—using Hong Kong as a platform to export Chinese design via internationally accepted cultural narratives, offering long-term value beyond price competition.
Digital Transformation: Inclusive AI for SMEs
On AI, the report's 'Industry AI Application Acceleration Plan' and 'AI+Textile' fast-track approval precisely target SME pain points. While large firms deploy proprietary AI models, most SMEs face high upfront R&D costs and talent shortages. Hong Kong's proposal: government subsidies for fine-tuning general AI models for textiles, and allowing joint applications from enterprises and local AI startups, with phased funding based on results. This 'shared risk, shared reward' model lowers SMEs' trial costs.
Chairman of the Clothing Industry Training Authority, Chan Wing-on, further suggested optimizing the 'Continuing Education Fund' and 'Trade and Industry Support Fund' to encourage upskilling and build an industry-shared 'AI Tool Library'. The core logic: using public resources to build infrastructure, turning AI from a luxury into a daily necessity, accelerating the industry's digital penetration.