Hong Kong is experiencing surging textiles trade while China's export battles with the EU and US continue, according to a report cited by Reuters.

Hong Kong re-exports of textile and garments to the EU and the US jumped 80 per cent and 33 per cent respectively between April and July this year, the Hong Kong Trade and Industry Department says.

Hong Kong-based producers who operate units in China are benefiting from 'outward processing arrangements' that enable them to label their goods as made in Hong Kong if part of the items' production takes place there.