US-China trade war is Hong Kong’s opportunity to prove its value to Beijing

Christine Loh says the new trade war is just the opening salvo in a realignment of the US-led global order. As China eyes a larger role, Hong Kong – with its special privileges under the Basic Law – should use its freedom of travel and trade to open opportunities other Chinese cities cannot, instead of seeking to challenge Beijing

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Published: 4:01am, 10 Jul 2018Updated: 4:01am, 10 Jul 2018

The “trade” conflict between the United States and China is really about geopolitics rather than trade. A refashioning of the world order has begun. This reshaping is going to take decades. The process will be non-linear and often unpredictable. These changes are going to affect Hong Kong, without question.

Since Donald Trump was inaugurated as US president in January 2017, he has caused geopolitical rifts far and wide, even with America’s neighbours Mexico and Canada over border and trade issues respectively.

Another sign of geopolitical displacement is the loosening of the long-standing transatlantic alliance between the US and Europe.

Europeans feel the Trump administration is tearing down the post-second-world-war international order that the US helped build, which included the encouragement of multilateral trade and liberal democracy.

French President Emmanuel Macron addresses a press conference at the conclusion of the G7 Summit on June 9, in La Malbaie, Canada. US President Donald Trump left early and warned Canada, Japan and Europe that “the gig is up” and the US would pursue measures to combat what it considers unfair trade practices. Photo: AFP

Nato, China summits a chance for Europe to assert itself

The US has provoked a number of disagreements with Europe that includes tariffs, withdrawal from multilateral agreements on climate change and Iran’s nuclear proliferation, as well as defence spending. The recent imposition of tariffs on European steel and aluminium imports to the US resulted in the European Union launching a case at the World Trade Organisation to challenge the new duties.