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US-China trade war will benefit Southeast Asia, Hong Kong shoppers as exporters seek new markets, California official says

Jeffrey Williamson, director of the California State Trade Expansion Program, says US exporters will explore markets they did not pay much attention to previously

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Cherries are now up to 20 per cent cheaper in Hong Kong. Photo: Bloomberg
Shoppers in Southeast Asia and Hong Kong have emerged as beneficiaries of the raging US-China trade war as American exporters seek alternative ways to sell food and fruits, according to a California trade official.
As a spillover effect of the tit-for-tat spat involving billions of dollars of trade, Jeffrey Williamson, director of the government-backed California State Trade Expansion Program, said on Thursday US exporters would explore markets they did not pay much attention to previously. For example, American cherries sold in Hong Kong this month were about 10-20 per cent cheaper than last summer.

Still, many American exporters, which count mainland China as their biggest market, did not want to give up the trade and were seeking to get around the hefty tariffs through e-retailing, he said.

“China is still the biggest market for many California exporters, how can you ignore it?” Williamson said on the sidelines of the Food Expo, a five-day trade show in Wan Chai.

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“Nobody wants to pay more for the same thing they paid for six months ago. Innovation is key for the future, it is a lesson for everyone.”

The United States fired the first shot of the trade war in June when its decision to levy a 25 per cent tariff on US$34 billion (HK$265.2 billion) worth of Chinese goods took effect. In a tit-for-tat move, China imposed the same extent of tariffs on an equivalent mount of American goods.

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The US then proposed to impose a 10 per cent tariff on US$200 billion worth of Chinese products, pending a congressional hearing on August 20. On August 23, a 25 per cent tariff on another US$16 billion worth of Chinese goods would come into effect.

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