Advertisement
Parallel trading
OpinionLetters

Letters to the Editor, March 17, 2013

Parallel-goods trading is a controversial topic and a practice condemned by many people. However, I think it is beneficial to Hong Kong to some extent.

Reading Time:5 minutes
Why you can trust SCMP
Malaysian soldiers patrol Sabah, on Borneo. Photo: EPA
Letters

Parallel-goods trading is a controversial topic and a practice condemned by many people. However, I think it is beneficial to Hong Kong to some extent.

Shops like pharmacies, where people buy popular parallel trade products like formula milk to take back and sell in the mainland, see increased business and as a result will have to pay more in profits tax.

Advertisement

This extra revenue might help the government to implement initiatives that will help Hong Kong people, for example improving infrastructure.

However, there is no doubt the parallel-goods trade also brings disadvantages for Hong Kong. In Sheung Shui, where the parallel traders have been doing business for a long time, and frequently block access to the MTR station, residents have been inconvenienced and seen their quality of life reduced.

Advertisement

Moreover, the goods bought by the mainlanders can lead, as with milk powder, to shortages for Hong Kong citizens, possibly increasing prices through supply and demand, and lead to inflation.

Even so, I think the government should implement policies to regulate the practice that balance the interests of all parties, instead of targeting only the parallel traders.

Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x