The Chinese national flags and the Hong Kong Special Administrative Region flags are displayed in Tsim Sha Tsui, Hong Kong, on June 30, 2020 to celebrate the 23rd anniversary of Hong Kong's return to the motherland. (RAYMOND CHAN / CHINA DAILY)

HONG KONG – Sanctions by the United States will have little impact on the city’s manufacturing industry and HK-US research and science collaboration, business leaders and a leading engineer in Hong Kong said on Tuesday. 

In an attempt to pressure China over a tailor-made national security law for Hong Kong, US Department of Commerce on Monday announced the start of eliminating Hong Kong’s special trade status under the US law, halting defense exports and restricting the territory’s access to commercial-military dual use technologies.

According to Louis Chan, assistant principal economist (global research) of Hong Kong Trade Development Council, only 1% of the products imported from the US needed export licenses last year. Thus, the sanctions imposed will only have impact on the 1% products, he said.

Louis Chan, assistant principal economist (global research) of Hong Kong Trade Development Council, estimated the sanctions will have limited impact on the city as it affects only non-mainstream products exported to the city.

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According to Chan, only 1 percent of the products imported from the US needed export licenses last year. Thus, the sanctions imposed will only have impact on the 1 percent products, he said.

According to Raymond Young Lap-moon, chief executive officer of Chinese Manufacturers' Association of Hong Kong, the city’s business sector has prepared itself for such sanctions. 

No member of the association has complained yet about having difficulties due to the sanctions, he added.

Wong Kam-fai, associate dean of Faculty of Engineering of the Chinese University of Hong Kong, said the sanctions related to hi-tech products will have little impact on the city’s scientific cooperation with the US as the two sides have established mutual-trust based on many years of collaboration and clearly understand how Hong Kong side use those products. 

The new measures may hit the business of some companies, which planned to manufacture products basing on these technologies, in short term, but, in long run, the impact will be limited as the rise of technology in Asia offers the city more options, added Wong.

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