Chief Executive John Lee has said Hong Kong will “fully seize” the opportunities in China and deepen regional ties amid uncertainties caused by “ruthless” US tariffs on the city’s goods.
During a press briefing on Tuesday, Lee also called the imposition of an additional 34 per cent levy by the US on Chinese imports, including products from Hong Kong, a “reckless” move affecting many countries and regions.
The sweeping global “reciprocal tariffs” unveiled by US President Donald Trump on Wednesday would “disrupt world economic and trade order” and bring “great risks and uncertainties to the world,” the Hong Kong leader said.
“The US no longer adheres to free trade, arbitrarily undermining the internationally established rules of world trade. Its ruthless behaviour damages global and multilateral trade,” the Hong Kong leader said.
Chinese and Hong Kong goods face a 54 per cent tariff, after Trump imposed a 34 per cent duty on Wednesday, on top of the 20 per cent levies introduced in February and March.
Hong Kong’s stock market experienced its worst day in almost three decades on Monday, with shares plummeting more than 13 per cent, as the global market reacted to Trump’s sweeping tariffs on nearly all US trading partners last week.
China announced on Friday retaliatory measures against Trump’s tariffs, imposing 34 per cent levies on US goods. On Monday, Trump threatened to slap an additional 50 per cent tariff on Chinese imports if Beijing did not withdraw its retaliation plans by Tuesday. This will stack on the new levies, which are set to come into full effect on Wednesday.
Hong Kong has not followed Beijing’s lead in imposing retaliatory levies.
Lee said on Tuesday that Hong Kong would “actively integrate” into China’s development and take advantage of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) to attract more foreign companies to set up operations in the city.
The accumulated tariff concessions on goods under the free trade agreement between Hong Kong and mainland China exceeded 10.2 billion yuan as of the end of last year, he said.
“We shall fully seize the opportunities in our country,” Lee said.
Hong Kong will strengthen international exchanges and deepen regional ties, including by signing more free trade agreements with countries and regions, the chief executive said.
The city’s free trade agreements currently cover 20 economies, and it is in the process of negotiating investment deals with Saudi Arabia, Bangladesh, Egypt and Peru, he told reporters.
The government is also pushing to join the Regional Comprehensive Economic Partnership, which covers 15 members, including China, Japan and South Korea.
The Hong Kong Trade Development Council will expand the city’s network by setting up offices in Egypt, Turkey, and Cambodia, Lee said.
See also: Hong Kong businesses forced to weigh options as Trump’s tariffs squeeze access to US market
He also vowed to “accelerate industrial transformation” and strengthen Hong Kong’s competitiveness by attracting top talent.
The government will also provide support to local enterprises affected by tariffs, such as capital flow assistance, export credit insurance measures and brand development, Lee said.
