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Help Hong Kong businesses weather US-China trade war with quicker free-trade deals, government urged

Chairman of one of the biggest local business chambers, who recently visited Washington with government delegation, says city ‘already trapped in the middle’

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Almost half of the Chinese goods shipped through Hong Kong to the US will be affected by the new tariffs, according to the government. Photo: Felix Wong

Hong Kong businesses badly need new markets as the China-US trade war rages on, a business leader has said, urging the government to help them export.

Jimmy Kwok Chun-wah, chairman of one of the city’s largest business chambers, the Federation of Hong Kong Industries, said officials should speed up work on free-trade deals with other countries.

Since firing the first shot in the trade war in July with a series of tariffs, the United States has slapped 10 per cent tariffs on US$200 billion worth of Chinese products. China hit back with a 5 per cent to 10 per cent levy on US$60 billion worth of American goods.

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Jimmy Kwok called on the government to hurry up with free-trade deals. Photo: Dickson Lee
Jimmy Kwok called on the government to hurry up with free-trade deals. Photo: Dickson Lee

Almost half of the Chinese goods shipped via Hong Kong to the US will be affected by the tariffs, according to commerce minister Edward Yau Tang-wah. The US is Hong Kong’s second-largest trade partner.

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Trade war aside, Asian manufacturers could find it harder to sell their products in American markets after the US, Mexico and Canada signed a new trade deal on Monday.

“The government should accelerate trade talks or enter interim arrangements for individual sectors to help ease the Hong Kong business sector’s woes,” Kwok said. “[US President Donald] Trump may change his tactics on China at any time, and Hong Kong is already trapped in the middle.”

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