Hong Kong leaders say cities will sign more free trade agreements amid “brutal” U.S. tariffs
James Pomfret and Clare Jim
HONG KONG (Reuters) – Hong Kong leader John Lee said on Tuesday that the city will sign more free trade agreements to diversify its risks due to what he calls a global trade war triggered by “ruthless” U.S. tariffs, saying he is undermining the world’s economy and trade order.
“The United States no longer abides by free trade, arbitrarily undermines internationally established world trade rules, and its ruthless actions undermine global and multilateral trade,” Lee was approved by the United States in 2020 for his role in Hong Kong’s rights crackdown.
Hong Kong, as an international trade center, will be affected by U.S. tariffs in the near term, but Lee said it will continue to remain a free port and the city does not intend to impose any retaliatory tariffs on the U.S. in the United States.
The latest additional 34% U.S. tariffs imposed in China also apply to Hong Kong – under a thorough national security law, Washington is no longer considered an independent trading entity under a year-long crackdown.
Lee said that this combined with an earlier 20% tariff, which means that the U.S. tariffs on Hong Kong goods are now 54%.
Lee said Hong Kong will seek to establish trade and business links elsewhere, including more free trade agreements in Southeast Asia and the Middle East. He added that the new Hong Kong Trade Office will also be established in Egypt, Türkiye and Cambodia.
He said Hong Kong is in talks with Saudi Arabia, Bangladesh and Peru on an investment agreement.
“We will seize the main trend of geographical diversification in the world and actively attract foreign companies and capital to build Hong Kong, as Hong Kong can provide security and stability for investors,” Lee said.
Hong Kong earlier guaranteed support for SMEs amid current difficulties.
Hong Kong's Hang Seng Index rose 2.5% in trade on Tuesday morning after its biggest decline since 1997 as stocks fell 13.2% on Monday's fears of a global trade war that could trigger a recession.
Regarding the ongoing controversy over CK Hutchison's plan to sell its Panama port to the U.S. group, Lee reiterated comments that the agreement must comply with local laws and regulations, due to strong criticism from Chinese media that the deal was a “betrayal” by China.
“There are extensive discussions on the issue with society, which reflects the concerns of society on the matter. These concerns deserve attention,” he said.
