The recent announcement by the united states of the imposition of so-called “reciprocal tariffs” has triggered a global trade war and triggered a strong response from the international community, which caused a major shock in global financial markets. As an outward-looking economy, hong kong is also under pressure. In the past few days, hong kong's political and business community has strongly condemned the imposition of customs duties on the united states; business and industry have expressed the view that hong kong needs to respond and defend its legitimate rights and interests。
Business transformation: diversified layout to address risk
In the view of the president of the general chamber of commerce of hong kong, cai hong kong, tariffs imposed by the united states have a greater impact on traditional export-oriented industries. Transit trade accounted for a high share of hong kong's exports, and related services were affected by tariff shocks or reduced cargo flows。
In recent years, hong kong producers have eased tariff pressures by establishing plants in countries and regions such as viet nam and indonesia and exporting products to the united states. According to the government of the hong kong sar, the share of the united states in the overall export market for goods in hong kong in 2024 had declined from 8. 6 per cent in 2018 to 6. 5 per cent, while the share of the asean market had risen from 7. 4 per cent to 8. 7 per cent, ranking second only to that of the mainland china. Since 2019, asean has surpassed the united states as the second largest export market for goods from hong kong。
After the so-called “reciprocal tariffs” were dropped by the united states, the business community in hong kong realized that the problem could not be solved only by “lifting plants”。
The secretary-general of the hong kong chamber of commerce and industry believes that, in addition to continuing to exploit overseas markets and spread risks, hong kong producers can pursue a “internal marketing” route by introducing good products into the mainland market, stimulating domestic demand consumption and promoting a new pattern of domestic and international dual-cycle development。
Generating capacity: high-quality industrial upgrading to sea
“in the new environment, both hong kong and mainland enterprises need to strengthen their industrial chains and product competitiveness through innovative technology enabling to attract international market demand.” the chairman of the hong kong productivity promotion agency (hkpsa), chen zhu xian, said so。
In order to provide “one stop” support to start-ups in hong kong and the mainland, the productivity authority formally established the “out to the sea” service centre on 11 november, in collaboration with the hong kong city youth innovation and entrepreneurship centre, the long triangle national centre for technological innovation and the national centre for technological innovation in the hong kong sar。
This is not the first project of the productivity authority to support enterprises going to sea. Over the past 10 years, the agency has completed more than 1,400 smart projects in the bay of hong kong and has promoted the 9+3+1 development plan to establish service bases and research and development centres to support high-quality “off to sea” by small and medium-sized enterprises。
In the case of hong kong, there are many possibilities for creative development, one of which is the creation of new types of science-enabled industries. The hksar government previously announced that hong kong's “manufacturing and new industrial industries” generated more than hk$76 billion in 2023, an increase of 7. 6 per cent over the previous year. The director of the department of innovation, science and technology and industry of the hksar government, sun dong, said: “whatever the external environment, hong kong industries should move steadily in the direction set by the creative development blueprint.”
Government support: multi-measure and market expansion
While the business community is resilient, the hksar government has deployed and launched a series of measures to respond positively and in a number of ways。
On 8 april, the hong kong financial authority joined forces with the hong kong banking industry to introduce support measures for individual industries to further assist more smes in accessing bank financing and upgrading; on 10 april, the hong kong export credit insurance board launched three measures to support hong kong's export trade; and on 11 april, the hong kong government's director of transport and logistics, chen meibao, stated that five major strategies would be introduced to facilitate trans-shipment, strengthen collaboration with ports in the bay region to “raise” and simplify customs clearances to help the shipping industry cope with tariff pressures。
In addition to policy support, the chief executive of the hksar will visit the middle east in may to “go out” with mainland enterprises to help small and medium-sized enterprises cope with difficulties。
“hong kong has experienced countless waves and has been able to thrive in the challenges.” in his recent meeting with the media, lee said: “we will continue to pursue a policy of free trade that will attract trade and investment from around the world to hong kong and enjoy the opportunities of hong kong and china.”
