HONG KONG will suffer from the budget row in the United States, because of the close economic links between the two, the new chairman of the American Chamber of Commerce in Hong Kong (Amcham) says.
Mark Michelson said the dollar peg and the poor performance of the US financial market would be harmful to Hong Kong's economy, especially if the budget war dragged on.
Services provided by the American Consulate would also be affected.
'It [the consulate] may close down again, but the financial side is much worse,' he said.
Mr Michelson was worried about the bearish mood of the US stock market in the past few days, with negative sentiment stemming from the unresolved budget row.
'I am hoping the signals from the financial market will get American politicians more energetic about trying to solve the row.' Mr Michelson said the bullish performance of the US stock market at the beginning of the budget talks was due to expectation that the row would be resolved quickly.
Amcham president Frank Martin said the chamber would urge unconditional renewal of China's Most Favoured Nation (MFN) this year.
