Hong Kong leader vows more free trade pacts amid ‘ruthless’ US tariffs
The city is in negotiations for investment agreements with Saudi Arabia, Bangladesh and Peru
[HONG KONG] Hong Kong leader John Lee said on Tuesday (Apr 8) that the city would sign more free trade pacts to diversify its risk amid a global trade war triggered by what he called “ruthless” US tariffs that he said were disrupting the world economic and trade order.
“The US no longer adheres to free trade, arbitrarily undermining the internationally established rules of world trade, and its ruthless behaviour damages global and multilateral trade,” Lee, who was sanctioned by the United States in 2020 for his role in the rights crackdown in Hong Kong, told reporters.
Hong Kong, as an international trade hub, will be affected by US tariffs in the short term but Lee pointed out that it would continue to remain a free port, with the city not planning to impose any retaliatory tariffs on the US right now.
The latest additional US tariffs of 34 per cent that were imposed on China also apply to Hong Kong – which is no longer considered a separate trading entity by Washington amid a years-long crackdown under a sweeping national security law. This coupled with an earlier 20 per cent tariff, means combined US tariffs on Hong Kong goods are now 54 per cent, Lee added.
In terms of mitigation, Lee said that Hong Kong would seek to bolster trade and business linkages elsewhere including more free trade agreements in areas such as South-east Asia and the Middle East. New Hong Kong trade offices would also be set up in Egypt, Turkey and Cambodia, he added.
He informed that Hong Kong is in negotiations for investment agreements with Saudi Arabia, Bangladesh and Peru. “We will seize the world’s major trend of geographical diversification proactively attracting foreign companies and capital to establish Hong Kong because Hong Kong can provide security and stability to investors,” Lee explained.
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Hong Kong earlier pledged support for small and medium enterprises amid the current difficulties.
The Hang Seng Index ended 1.5 per cent up on Tuesday after slumping 13.2 per cent in the previous session, its steepest decline since the 1997 Asian financial crisis.
On the ongoing controversy over CK Hutchison’s planned sale of its Panama ports to a US group, Lee reiterated comments about the deal having to comply with local laws and regulations amid strong criticism from Chinese state media about the deal being a “betrayal” of China.
“There have been an extensive discussion with the society about the issue, and this reflects society’s concern over the matter. These concerns deserve serious attention,” he noted.
The deal has highlighted perceptions of Beijing’s growing grip over Hong Kong amid growing geopolitical tensions with the US.
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