Published: 01:49, April 23, 2025
Xia’s remarks reveal the impact of US tariffs on Hong Kong
By Yin Zihan and Kacee Ting Wong

It came as a great surprise to some observers that Xia Baolong, director of the Hong Kong and Macao Work Office of the Communist Party of China Central Committee, condemned the unilateral tariffs imposed by the Trump administration on imports from the Hong Kong Special Administrative Region, slamming the move as “extremely arrogant and shameless”.

In a speech to mark the 10th National Security Education Day, Xia said “the US is not after our tariffs — it is after our very survival.” He further stated that the United States was the biggest sinister manipulator undermining human rights, freedom, the rule of law, prosperity and stability in the HKSAR.

Political communication is not just what a leader says, it is how the message shapes the people around him. Since some residents in the city do not believe that the HKSAR will be directly caught in the crossfire of an escalating trade war between China and the US, Xia’s timely reminder serves as a wake-up call to warn those living in an echo chamber not to seek messages that are consonant with their attitudes. The cruel reality is that the US is trying its utmost to isolate and weaken China. According to US Treasury Secretary Scott Bessent, the US wants trading partners to limit China’s involvement in their economics in exchange for concessions on reciprocal tariffs. The imposition of reciprocal tariffs is a very unreasonable attempt to slap tariffs on all US imports or on goods from countries that have a trade surplus with the US.

This cruel reality has been seared into the minds of Beijing. Not surprisingly, China has abandoned illusions about an easy settlement of the complicated trade disputes with the US. Besides, Trump’s unpredictability raises the concern that “strategic surprise” is dangerous for Sino-American relations. Beijing will face tremendous geopolitical headwinds if Washington succeeds in forming a US-dominated trading bloc against China and manages to extract economic gains on a global scale. Unwilling to negotiate with the US on bended knee, Beijing has adopted an assertive attitude toward Trump’s trade offensive. President Xi Jinping spoke out against bullying and hegemony — apparent references to the US — during his recent trip to Southeast Asia.

From the perspective of persons in the know, the tariff war will adversely affect the interests of the city. In response to Xia’s speech on the tariff war, Zheng Yanxiong, director of the Liaison Office of the Central People’s Government in the HKSAR, highlighted measures against the US as the agency hosted a study session of Xia’s speech. Zheng said Xia’s remarks urged people to fully support Chief Executive John Lee Ka-chiu and the HKSAR government in fulfilling Beijing’s expectations.

Analysts have interpreted Xia’s speech as essentially a “battle mobilization order” for Hong Kong. Lau Siu-kai, consultant for the Chinese Association of Hong Kong and Macao Studies and professor emeritus of sociology at the Chinese University of Hong Kong, said he believes the remarks to be “a clear directive” that neutrality is no longer an option for the city. Hong Kong must now prepare for sustained economic warfare and strengthen its national security infrastructure. To help the city steer away from troubled security waters, Xia did bring the issue of national security to the fore in his speech. He called for courage from all sectors to safeguard national security.

Xia’s speech ignited a sense of patriotism among the residents of the HKSAR. He said the “shameless levies” imposed by the US would only unite the nation as the Chinese people would never accept bullying. Big businesses in the city should not sit on the sidelines. According to Xia, Hong Kong’s business community and entrepreneurs will continue to play a leading role in promoting economic development, carry forward the fine tradition of patriotism and love for the SAR, and correctly understand the relationship between their own enterprises and the development of the SAR and the country.

At a closed-door seminar held on April 17, Lee said US measures showed the true face of its hegemonic barbarism. Attendees proposed strategies to mitigate risks and fight side by side with the central government. These measures included: increasing the diversification of production and sales network, shifting from processing to independent brands, and upgrading from “Made in China” to “Famous brands in China”. It is also worthy of note that Hong Kong decided to file a complaint to the World Trade Organization against the US tariffs.

As mentioned earlier, the HKSAR should not remain neutral because the tariff war will pose a serious threat to the city and the State. Though the HKSAR has decided not to follow Beijing’s lead in retaliating with a 125 percent levy on American imports, exports from Hong Kong are now subject to the same 145 percent tariff the Trump administration has slapped on imports from China. The tariffs on small parcels have also dealt a blow to local businesses that rely on e-commerce. Standing on the right side of history, the American Chamber of Commerce in Hong Kong has supported the SAR government’s stance that the city should remain as a separate customs entity distinct from the mainland. Our think tank urges more fair-minded Americans to renounce the jungle law propagated by Trump and voice their support for Hong Kong.

Xia also wanted us to bear in mind that bullying has never worked on Chinese people. We couldn’t agree more. We should thank Trump for taking malicious measures to make our life difficult because the bullying acts will eventually make us stronger and more resilient. Finally, we are highly confident that Hong Kong can meet the expectations of the central government.

Yin Zihan is a co-leader of the Rainbow Pair Mentorship Program launched and administered by Chinese Dream Think Tank.

Kacee Ting Wong is a barrister, a part-time researcher of Shenzhen University Hong Kong and the Macao Basic Law Research Center, chairman of Chinese Dream Think Tank, and a district councilor.

The views do not necessarily reflect those of China Daily.