By James Pomfret and Clare Jim
HONG KONG (Reuters) – Hong Kong chief John Lee stated on Tuesday the town would signal extra free commerce pacts to diversify its threat amid a world commerce battle triggered by what he referred to as “ruthless” U.S. tariffs that he stated have been disrupting the world financial and commerce order.
“The U.S. now not adheres to free commerce, arbitrarily undermining the internationally established guidelines of world commerce, and its ruthless behaviour damages world and multilateral commerce,” Lee, who was sanctioned by the U.S. in 2020 for his position within the rights crackdown in Hong Kong, advised reporters.
Hong Kong, as a global commerce hub, can be affected by U.S. tariffs within the quick time period however Lee stated it might proceed to stay a free port, with the town not planning to impose any retaliatory tariffs on the U.S. proper now.
The newest further U.S. tariffs of 34 p.c that have been imposed on China additionally apply to Hong Kong — which is now not thought of a separate buying and selling entity by Washington amid a years-long crackdown beneath a sweeping nationwide safety legislation.
This coupled with an earlier 20 p.c tariff, means mixed U.S. tariffs on Hong Kong items at the moment are 54%, Lee stated.
By way of mitigation, Lee stated Hong Kong would search to bolster commerce and enterprise linkages elsewhere together with extra free commerce agreements in areas reminiscent of South East Asia and the Center East. New Hong Kong commerce workplaces would even be arrange in Egypt, Turkey and Cambodia, he added.
He stated Hong Kong is in negotiations for funding agreements with Saudi Arabia, Bangladesh and Peru.
“We’ll seize the world’s main development of geographical diversification proactively attracting international corporations and capital to ascertain Hong Kong as a result of Hong Kong can present safety and stability to traders,” Lee stated.
Hong Kong earlier pledged help for small and medium enterprises amid the present difficulties.
Hong Kong’s Dangle Seng Index was up 2.5 p.c in mid morning commerce on Tuesday, after struggling its greatest drop since 1997 on Monday when shares slumped 13.2 p.c on fears the worldwide commerce battle may set off a recession.
On the continuing controversy over CK Hutchison’s deliberate sale of its Panama ports to a U.S. group, Lee reiterated feedback in regards to the deal having to adjust to native legal guidelines and rules amid robust criticism from Chinese language state media in regards to the deal being a “betrayal” of China.
“There have been an intensive dialogue with the society in regards to the concern, and this displays society’s concern over the matter. These issues deserve severe consideration,” he stated.
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