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INDUSTRY AND TRADE
re-negotiation, serious concern was aroused by an increase in protectionist sentiments in some of Hong Kong's major markets, particularly the United States. Indeed, Congressman Ed Jenkins's name became well-known in Hong Kong through his sponsorship of the Jenkins Bill, which would have severely cut back Hong Kong exports to the United States. President Reagan's veto of the bill was narrowly sustained in August, assisted by the agreement to extend the MFA for five years and tight bilateral textile agreements with some major suppliers, including Hong Kong.
During the year, Hong Kong participated actively in talks in the General Agreement on Tariffs and Trade (GATT) which led to the launching in September of a new round of multilateral trade negotiations in Punta del Este, Uruguay. Parallel negotiations on goods and services are now being pursued.
The other major development in 1986 was that, following consultations between the governments of the United Kingdom and the People's Republic of China, Hong Kong became a separate countracting party to the GATT. The future Special Administrative Region's continued participation in the GATT is also ensured.
Textiles and Clothing
Textiles and clothing make up Hong Kong's largest industry, accounting for about 41 per cent of the total domestic exports and about 43 per cent of the industrial employment. Domestic exports of textiles and clothing in 1986 were valued at $63,117 million, compared with $52,735 million in 1985.
The output of cotton yarn in 1986 was 178 million kilograms, compared with 142 million kilograms in 1985. Production of man-made fibre yarn and cotton man-made fibre blended yarn was 13 million kilograms, compared with 15 million kilograms in 1985, and production of woollen and worsted yarn was four million kilograms, compared with four million kilograms the previous year. Most of the yarn produced was used locally.
The weaving sector, with 22 293 looms, produced 781 million square metres of woven fabrics of various fibres and blends, compared with 679 million square metres in 1985. The bulk of the production - 95 per cent - was of cotton. Much of the fabric produced was exported in the piece, but local clothing manufacturers used the major proportion of locally woven and finished fabrics.
The knitting sector exported 42 million kilograms of knitted fabrics in 1986 – of which 24 per cent was of man-made fibres or blended cotton man-made fibres, and 76 per cent was of cotton - compared with 22 million kilograms in 1985. In addition, a large quantity of knitted fabric of all fibres was used by local clothing manufacturers.
The finishing sector of the industry provides sophisticated support facilities to the spinning, weaving and knitting sectors. It handles a large amount of textile fabrics for bleaching, dyeing, printing and finishing. The processes include yarn texturising, multi- colour roller and screen printing, transfer printing, pre-shrinking, permanent pressing and polymerising.
Clothing is the largest single sector of the manufacturing industry, employing some 299 373 workers or about 34 per cent of the industrial employment. Domestic exports of clothing in 1986 were valued at $52,162 million, compared with $44,912 million in 1985.
Electronics
The electronics industry is the second largest export-earner after clothing. Domestic exports of electronics products in 1986 were valued at $33,393 million, compared with $27,014 million in 1985. The industry comprises 1 090 establishments employing 75 178