The lee family is loud
With the introduction of a global “reciprocal tariff” on multiple sites, tariffs imposed on mainland china will apply equally to the hong kong sar of china and the macao sar of china. In response, on 8 april, the chief executive of the hong kong sar, li jiachi, stated that hong kong would increase its efforts in seven areas in response to the indiscriminate application of customs duties by the united states。
The hong kong treasury director, chen mobo, also stated in his previous interview with the media that, despite the resulting shocks to the hong kong stock, the hong kong financial system was still very strong, and that the hong kong financial system was quite robust and transactions smooth, and that the hksar government would continue to work with multiple sectors to prevent financial risks。
Seven major initiatives should be taken in response to united states tariffs
In a meeting with the media prior to the executive council meeting on 8 april, li said that last week the united states announced the imposition of so-called “reciprocal tariffs” on a number of trading partners, adding 34 per cent to hong kong's products, together with 20 per cent previously announced, and cumulatively imposing 54 per cent。
“hong kong will increase its efforts in seven areas in the face of the indiscriminate application of tariffs by the united states, including accelerating industrial transformation and expanding the development of science, technology and innovation。
He pointed out that the united states was no longer pursuing free trade, was wantonly violating the internationally established rules of world trade, was brutal, undermined global trade and seriously undermined the multilateral trading system and the globalization process. The indiscriminate application of tariffs by the united states, which affects different countries and regions around the globe, has been accompanied by a large increase in the rate of tariffs, covering a wide range of commodities, undermining the world economic and trade order and creating great risks and instability for the world。
In addition to these global risks, hong kong's trans-shipment trade and logistics industries face pressures. Li said that foreign-trading enterprises, particularly small and medium-sized enterprises and cross-border electric operators, were inevitably affected in the short term。
As a response, the hksar government will increase its efforts in seven areas。
First, to take full advantage of national development opportunities, actively integrate into the national development agenda and increase the distribution of products to different provinces and municipalities in the interior。
Secondly, international engagement and cooperation should be strengthened and regional cooperation actively deepened. Intraregional trade can be large, deep and wide, offsetting the decline in united states trade, and free trade agreements with more countries and economies。
Third, to accelerate the transformation of hong kong's industrial sector and to advance the construction of high-value-added supply chain service centres, digital trade and the promotion of the headquarters economy。
Fourth, the development of science, technology and innovation should be scaled up to include high-level talent and increase productivity and efficiency。
Fifthly, international financial cooperation should be vigorously promoted, with international financial centres and new sources and channels of finance。
Sixth, to capture the large trend of multinationals needing to diversify their risks and attract foreign firms and funds to hong kong。
Seventh, to continue to provide support to industry to assist enterprises in meeting their challenges, including through the financial services authority to coordinate the banking community's liquidity。
He stressed that free trade was hong kong's competitive advantage and its success, and that the hong kong authorities would continue to maintain hong kong's free port status and pursue a free trade policy。
Multi-sectoral cooperation to counter financial risks
The hong kong stock market also reflected worldwide pessimism and investment after the break, as a result of the wave of tariff winds, with the heterogeneity index falling by over 3,000 points yesterday. In his meeting with the media on the evening of 7 april, hong kong's director of finance, chen mobo, stated that, despite this, the hong kong financial system was still very strong, and that the hong kong financial system was quite robust, and transactions were smooth and orderly, and that no irregularities had been detected that had had a systemic impact on the hong kong market. The hong kong dollar remained stable under the system of associated exchange rates, with the hong kong dollar on the strong side of the dollar and the currency market functioning normally。
According to chen, the hksar government, together with the securities and futures supervisory commission, the financial services authority and the hong kong exchange, will continue to maintain a high level of vigilance and financial risk prevention through close round-the-clock, linked and cross-market surveillance。
According to chen mobo, united states tariff measures will inevitably increase market volatility over the coming period, while countervailing measures by countries and interest rate policies by major central banks will trigger more volatile financial flows. The hksar government calls on citizens to invest in risk management and to do what they can。
For hong kong's small and medium-sized enterprises, the outlook for global trade is beset by developments in geography, and hong kong, as a hub for international trade, is inevitably affected in the short term. The hksar government has been closely following and evaluating developments and providing multifaceted support to small and medium-sized local enterprises。
As a founding member of wto, hong kong has been a strong supporter of the rules-based multilateral trading system and one of the most open economies. Hong kong will maintain its status as a free port in accordance with the basic law, pursue a free trade policy that guarantees the free movement of goods, funds and information, and its determination and commitment to support free trade will not waver。
