Opinion | Beyond the trade war, Hong Kong should see a fortune waiting to be made in emerging markets

Christine Loh says the trade war is taking attention away from the new opportunities opening up in the BRICS economies, and China’s own belt and road and Greater Bay Area plans. Hong Kong should not miss out

Reading Time:4 minutes

Chinese and South African technicians work inside a locomotive to be assembled at a Transnet Engineering plant in Pretoria, South Africa, in July last year. Economic ties between China and African countries have deepened under the Belt and Road Initiative, a Chinese effort to take its infrastructure building and other capabilities beyond borders. Photo: Xinhua

Published: 2:00am, 21 Aug 2018Updated: 3:36pm, 31 Aug 2018

The ongoing US-ignited trade war is the main spectacle on the global stage. There is more going on at the margins, however, and Hong Kong should take note. Important new networks and avenues for new economic activities are emerging.

The tariffs – imposed first by the US and then by its trading partners in retaliation – are starting to bite. Thankfully, the US and the European Union have agreed not to make things worse for now.

However, the same cannot be said for the US-China punch-up. As in a boxing match, both sides are delivering punches that hurt. But unlike the sport, where only two boxers are in the ring, trade tariffs affect countless businesses, industries and economies, especially when a very large number of items are involved.

Go through the list of these items and the trade war becomes real for ordinary folk. Americans will pay more for many consumer goods, as many of them are imported from China, while the Chinese will pay more for many types of US-imported food.

Businesses face greater challenges still. The list includes agricultural, energy and industrial products. Prices are immediately affected, and there is a scramble for alternative markets for both buyers and sellers. There may also be cash flow problems, which is why the US government is providing a relief package of up to US$12 billion for its farming sector.

Watch: Chinese meat importers look elsewhere

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