How should hong kong, as the international trade centre, respond to the growing customs war between china and the united states? What role can be played? In an interview with a journalist, professor zheng yongyan, director of the public policy school of the chinese university of hong kong (shenzhen), and former director of the hai institute of international affairs, stated that hong kong, as a free port, would play a more important role in china's free trade. Hong kong would need to take advantage of its comparative advantage in the service sector, promote the internationalization of the renminbi and take the lead in virtual currency transactions。
Director of the public policy institute of the chinese university of hong kong (shenzhen) and director of the former hai institute of international affairs。
The chinese economy is more resilient
In zheng young's view, the world's economies are more interconnected and dependent on each other, and the impact of trump's customs war is much more severe and profound than that of the united states smoot-holly customs act in the 1930s。
The customs war was caused by internal united states contradictions, and trump wanted to redistribute american domestic interests. Zheng ying said that trump had begun “re-industrialization” of the united states from the first presidential term, but from united states import data, “re-industrialization” had actually failed, at least for the first eight years. The united states is no longer in a position to re-manufacturing economic goods, which are below medium-technology。
Zheng young-il believes that there has been a miscalculation of china by american economists and policymakers. “trump launched a customs war, and we are ready. It is not only the state that is prepared, but also the business that is prepared, especially the long triangles, the beads and the kyozu. For china, whether through internal consumption or re-opening overseas markets, the issue of “where to sell” could be resolved. As china continues to open unilaterally to other countries, others will open to china and china’s trade with other countries and economies will increase. The eight-year trade war between china and the united states does not mean that it has no impact on china, but what we actually see is that the chinese economy is more resilient and stronger。
“the long-term struggle between china and the united states is a very difficult struggle, and we must strengthen our own modern industrial system, which is our economic resilience.” zheng yong-yin said that china's modern industrial system must have five characteristics: full, large, multi-scale, dense and strong. He suggested that business should assess internal political factors before going to sea, “not putting eggs in a basket, but must spread out, especially in the current geopolitical changes”. For the general population, there is little impact。
“this customs war is more likely to be a geopolitical war.” zheng young-il said to journalists that over the years, china had contributed to the industrialization process in many asean countries through its “one way forward” strategy. The conflict between china and the united states was the most difficult option for asean, and the united states was now threatening to divide asean in an economic way。
For asean, most countries were still industrialization, some at an early stage, and that would have a very negative impact on their industrialization and would be devastating. Currently, president xi jinping is visiting the asean three countries and zheng young-yin considers this visit to be of great importance。
“we need to look further, think deeper, continue to observe america's every move, and also believe that we have the power to fight it.” zheng yong-yun said。
Hong kong should highlight financial services
During this customs battle, the united states imposed a 145 per cent tariff on hong kong from which there were no tariffs. What role could hong kong play as an international trade centre in responding to customs battles? Zheng yongyan believes that hong kong, as a free port, will play a more important role in china's free trade. As hong kong's infrastructure, regulation and standard management as a free-trade port are well developed, hong kong should in future become not only a bridge between east and west, but also an economy that is unilaterally open to the united states or the west, connecting asean, africa, asia, and playing an increasingly prominent role。
Picture of the hong kong government information service
In recent years, zheng young-yung has been promoting “hong kong+” to develop hong kong's system of interfacing with the mainland, building on hong kong's rules system, and promoting the interface between rules and mechanisms in a number of areas in hong kong and australia, such as pharmacology, financial management, north-west of hong kong, and allowing hong kong and australian professionals to practise in the mainland。
Zheng young-yin noted that hong kong's comparative advantage is in the service sector. He stressed that hong kong must make use of its comparative advantages and potential, especially in the area of finance. “the assessment of hong kong over the years by many international evaluation bodies has been no worse than that of singapore, with free trade, especially finance, and the promotion of the internationalization of the renminbi, in which hong kong can do a great deal, or even try, in virtual currency transactions.”
