Blog

US-China trade conflicts

A gist of the blog:

One of the major global trends that I highlighted in this year’s budget is the rise of protectionism in some advanced economies. The risk in this aspect has heightened following a host of trade measures recently announced by the US against China’s import and investment, which many people fear that may result in a trade war.

Hong Kong is a highly open and small economy. Free trade is the cornerstone of our economic success. The total value of merchandise and services trade of Hong Kong amounts to 375% of our GDP. Trading and logistics industry is one of our pillar industries that contributes 22% of GDP and employs about 730,000 people.

Both Mainland and the US are our major trading partners. In 2017, the total value of Mainland’s merchandise export to the US routing through Hong Kong amounted to $280 billion, representing 7% of Hong Kong’s export. The trade disputes between China and the U.S will inevitably impede relevant trade activities and may negatively impact Hong Kong’s Economy to a certain extent. We will closely monitor the progress of the ongoing negotiation between China and the US, and constantly evaluate the latest situation.

April 1, 2018