Hong Kong Financial Secretary Paul Chan Mo-po on Sunday condemned the United States’ reciprocal tariffs “on nearly all countries and regions” as bullying behavior that “severely” violates World Trade Organization rules and undermines the multilateral trading system.
Writing in his official blog, Chan noted that major global economies have proposed or taken countermeasures, causing US stock markets to plunge for two consecutive days, wiping out over $6 trillion in market value.
Financial institutions have sharply lowered growth forecasts for both the US and global economies, predicting US recession, deteriorating employment conditions, and worsening inflation that will primarily impact ordinary Americans, he said.
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The finance chief criticized the US actions for creating market anxiety and signaling the end of the rules-based multilateral trading system, leading the global economy into an uncertain and turbulent era.
While acknowledging Hong Kong will inevitably face some short-term impacts, he highlighted the need to remain vigilant and prepared.
“The Hong Kong SAR government will support local businesses with various measures, including liquidity assistance, export credit insurance through the Export Credit Insurance Corp, and banking support for small- and medium-sized enterprises coordinated by the Monetary Authority,” he said.
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“Additionally, the government will help companies explore new markets, provide funding for digital transformation, and leverage e-commerce opportunities.”
Chan stressed the importance of strengthening ties with traditional markets while accelerating connections with emerging “Global South” markets to create new channels for Hong Kong and mainland businesses.
He also revealed that a fourth batch of key enterprise partners will be announced in two days, including companies specializing in high-precision artificial intelligence, commercial service robots, and surgical medical equipment.
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According to official data, the US’ share of Hong Kong’s overall merchandise exports had decreased from 8.6 percent in 2018 to 6.5 percent last year, while the Association of Southeast Asian Nations and the Middle East have seen their market shares rise from 7.4 percent and 2 percent to 8.7 percent and 2.9 percent, respectively.
Since 2019, ASEAN has surpassed the US as the special administrative region’s second-largest merchandise export market, trailing behind the Chinese mainland.
“Over the past few years, economic, trade, and industrial cooperation among the mainland, Hong Kong and ASEAN has grown increasingly close,” Chan said.
