Economic Activities and Corresponding Statistics Updated for "Manufacturing and New Industrialisation-related Industries"

Revision to domain of economic activities comprising "Manufacturing and New Industrialisation-related Industries" and update of corresponding statistics

The Government announced today (May 28) the revised domain of economic activities that comprises "Manufacturing and New Industrialisation-related Industries" in Hong Kong, and updated statistics on the economic performance of relevant activities.

In line with the principles of adapting to local circumstances and keeping pace with the times, the Hong Kong Special Administrative Region Government has been closely monitoring how international organisations and other economies define manufacturing and new industrialisation. Having regard to the latest developments in Hong Kong's economic structure and industrial landscape, the Government conducts timely review of the existing coverage and statistical framework of "Manufacturing and New Industrialisation-related Industries", with a view to ensuring that relevant statistics objectively and accurately reflect its economic performance and contribution, thereby providing a key basis for refining industrial policies and monitoring their effectiveness.

To better capture global technological trends and the advancement of new industrialisation, the Innovation, Technology and Industry Bureau (ITIB) has further refined the domain of economic activities that comprises "Manufacturing and New Industrialisation-related Industries" by incorporating "Publishing and Packaging" (covering activities that generate intellectual property) and selected "Telecommunications" services (including data and computing centre services, cloud services, and other information technology activities provided by telecommunications companies). Following consultation with the Census and Statistics Department (C&SD), the relevant statistical framework has been correspondingly updated.

A new wave of technological innovation and industrial transformation has been developing rapidly, with new industries, business forms, and models emerging continuously. With reference to the latest version of the United Nations' International Standard Industrial Classification and taking into account the evolution of modern production models, the ITIB has refined the domain of "Manufacturing and New Industrialisation-related Industries" to also cover businesses involving outsourced production processes that satisfy the relevant preconditions (Note).

The ITIB has commissioned a consultant, under the ongoing consultancy study on the medium- to long-term development plan for new industrialisation in Hong Kong, and estimated that, based on the latest international standards and the updated statistical framework, "Manufacturing and New Industrialisation-related Industries" accounted for 3.8 per cent of Hong Kong's Gross Domestic Product in 2024. This reflects that the Government's new industrialisation initiatives are playing an increasingly important and positive role in promoting economic diversification and enhancing Hong Kong's overall competitiveness.

The Secretary for Innovation, Technology and Industry, Professor Sun Dong, Photo source: reference image

The Secretary for Innovation, Technology and Industry, Professor Sun Dong, said, "Hong Kong is accelerating the transformation of its economic growth drivers. There is broad consensus in society that innovation and technology should serve as the engine to drive the real economy towards higher-quality development. Advancing a new industrial system underpinned by technological innovation will help reshape Hong Kong's industrial base and enhance its overall competitive advantage. To support this direction, Hong Kong is actively developing new quality productive forces and promoting new industrialisation, including expediting the development of the Hong Kong Park of the Hetao Co-operation Zone, enhancing the I&T ecosystem, pooling R&D resources, advancing pilot production, preparing for the establishment of the first national manufacturing innovation centre outside the Mainland, and developing the Sandy Ridge Data Facility Cluster. These measures aim to foster deeper integration between technological and industrial innovation, actively integrate into the Greater Bay Area, and build a co-ordinated innovation model across the industrial chain. We are confident that 'Manufacturing and New Industrialisation' will continue to make a more significant contribution to Hong Kong and support the country's modern industrial system."

A spokesman for the C&SD said, "Following the revision to the domain of economic activities comprising 'Manufacturing and New Industrialisation-related Industries', its statistical framework has been updated accordingly. The C&SD will continue to keep abreast of relevant international guidelines and provide professional statistical advice to the ITIB and other stakeholders, with a view to compiling appropriate statistics that reflect the economic performance of 'Manufacturing and New Industrialisation-related Industries'."

"Manufacturing and New Industrialisation-related Industries" encompasses manufacturing and economic activities related to technological and industrial innovation, including:

(a) Manufacturing: for instance, the manufacturing of food products, pharmaceuticals, medicinal chemicals and botanical products, computer, electronic and optical products, and new energy equipment;

(b) Businesses involving outsourced production processes (satisfying relevant preconditions (Note)): for instance, cases where import and export companies outsource the production process with the provision of input materials or intellectual property inputs required for production;

(c) Science, product design and technology development: for instance, industrial and product design, chip design, new drug development, AI model development and application, and technical consulting services;

(d) Data services and software development: information technology activities such as data and computing centre services, data storage and processing, software development, and cloud services;

(e) Verification, testing and certification: for instance, functional testing and verification, technical and prototype testing, and compliance certification;

(f) Professional technical services: for instance, system design, integrated delivery, and maintenance services;

(g) Environmental engineering and green business: for instance, sewage treatment, waste recovery, sorting, and disposal; and

(h) Publishing and packaging: activities that generate intellectual property such as publishing productions and packaging products.

Note: The relevant preconditions refer to cases where a company outsourcing production processes should not only own the final products but also satisfy one of the following conditions:

(a) it owns the input materials used in the production process; or

(b) it exercises control over the production process through the provision of intellectual property inputs required for production (e.g. product design and technical specifications).

The Innovation, Technology and Industry Bureau (ITIB), Photo source: reference image

HKSAR Government welcomes Judiciary's establishment of Hong Kong International Commercial Court

The Hong Kong Special Administrative Region (HKSAR) Government today (May 28) said that it welcomes and supports the Judiciary's announcement on the establishment of the Hong Kong International Commercial Court (HKICC), which will specialise in adjudicating major cross-border and international commercial disputes, marking a new milestone in the development of Hong Kong's legal system.

The Chief Executive, Mr John Lee, said, "The National 15th Five-Year Plan explicitly outlines the initiatives of accelerating the development of the system and capacity for the rule of law in foreign affairs, improving mechanisms for international commercial mediation, arbitration, and litigation, and supporting Hong Kong to consolidate and enhance its status as an international financial, shipping, and trade centre and an international aviation hub, as well as deepening its development as an international legal and dispute resolution services centre. The HKSAR is the only common law jurisdiction in the country. Hong Kong's commercial and trade laws based on common law are internationally compatible, and well trusted by international businesses or investors. The establishment of the HKICC fully demonstrates Hong Kong's unique advantages under 'one country, two systems' of enjoying strong support of the motherland and being closely connected to the world. It will contribute new and greater strength to the country's high-level opening up, while further promoting the development of international commercial rules."

Litigation, arbitration, and mediation are the three main major means of dispute resolution. While Hong Kong has been developing international arbitration and mediation, litigation remains one of the most fundamental and indispensable ways of dispute resolution. As an international financial centre with a robust and well-established judicial system, Hong Kong's establishment of the HKICC will provide a fair, just, and professional mechanism for handling high-value or complex global commercial disputes, such as those arising from cross-border transactions, international trade, finance, infrastructure, or investment projects.

Mr Lee added, "Hong Kong has long been supporting free trade and is the world's fifth-largest trading entity in merchandise trade. The International Organization for Mediation, which is headquartered in Hong Kong, has come into operations. Amid the current complex and volatile geopolitical landscape, there is a keen demand among various economies for commercial dispute resolution platforms with international credibility. The establishment of the HKICC will strengthen Hong Kong's core capabilities and advantages in international litigation, complementing Hong Kong's existing international arbitration and mediation services to provide global enterprises or investors with diversified and comprehensive options for dispute resolution. This will further enhance the international competitiveness of Hong Kong's legal and dispute resolution services, propelling Hong Kong to a higher level of development in international dispute resolution services. The Judiciary of the HKSAR enjoys a lofty reputation internationally. I am deeply confident that the HKICC, upholding the excellent and professional credibility of the Judiciary, will be highly respected globally."

The Secretary for Justice, Mr Paul Lam, SC, noted that the HKICC will focus on handling complex and high-value international commercial disputes. The judges presiding over the cases will include not only judges from Hong Kong, but also those with high prestige and experience in such cases from other common law jurisdictions. Furthermore, with reference to the practices of other international commercial courts, a dedicated Practice Direction will be issued to streamline the litigation process and ensure that cases will be handled in a timely and efficient manner. He stated that the HKICC meets the needs and expectations of the country, Hong Kong, and the international business community, and will also bring new opportunities for the legal sector in Hong Kong.

Mr Lam said, "The HKSAR Government has the utmost confidence that the HKICC, leveraging the international background of its judges and efficient litigation procedures, will not only deliver authoritative and convincing rulings for the cases it hears, but also make significant contributions through its jurisprudence to the development of international commercial law. This will further consolidate the international reputation and status of Hong Kong's common law system, allowing Hong Kong to better leverage its unique advantages in this regard under the 'one country, two systems' principle."

The HKSAR Government will fully support and facilitate the preparatory work and relevant arrangements for the HKICC.

Source: AI-found images