China News Service, Hong Kong, April 12th Title: Facing the tariff challenges, Hong Kong's business community is calmly responding

China News Service reporter Liu Dawei

The United States recently announced the implementation of the so-called "reciprocal tariffs", provoking a global trade war, triggering a strong reaction from the international community, and the global financial market fluctuated sharply. As an outward-oriented economy, Hong Kong is also facing certain pressure. In recent days, Hong Kong political and business people have strongly condemned the abuse of tariffs by the United States; business people have said that Hong Kong needs to respond calmly and safeguard its legitimate rights and interests.

Business Transformation: Diversified Layout to Cope with Risks

In the view of Cai Guanshen, President of the Hong Kong Chinese Chamber of Commerce, the imposition of tariffs in the United States may have a great impact on traditional export-oriented industries. Re-export trade accounts for a high proportion of Hong Kong's exports, and the impact of tariffs may lead to a decline in the transfer of goods, which will affect the related service industry.

In recent years, Hong Kong manufacturers have eased tariff pressure by setting up factories in countries and regions such as Vietnam and Indonesia, and then exporting related products to the United States. According to statistics from the Hong Kong Special Administrative Region Government, the U.S. share of the overall goods export market in Hong Kong in 2024 has decreased from 8.6% in 2018 to 6.5%; while ASEAN's market share has increased from 7.4% to 8.7%, ranking second only to mainland China. Since 2019, ASEAN has surpassed the United States to become Hong Kong's second largest export market for goods.

After the US side threw out the so-called "reciprocal tariffs", the Hong Kong business community realized that it could not only rely on "moving factories" to solve the problem.

Hsieh Yaoqin, Secretary-General of the China Federation of Industry and Commerce of Hong Kong, believes that in addition to continuing to explore overseas markets and diversify risks, Hong Kong manufacturers can take a path of "domestic sales", introduce excellent products into the mainland market, stimulate domestic demand and consumption, and promote a new pattern of domestic circulation as the main body and domestic and international circulations mutually promoting development.

Enlightenment of innovation and science: high-quality "going overseas" for industrial upgrading

"In the new environment, both Hong Kong and mainland enterprises need to empower the industrial chain and product competitiveness through innovative technology to attract the demand of the international market." Chen Zuheng, chairman of the Hong Kong Productivity Promotion Bureau (Productivity Bureau), said.

In order to provide "one-stop" support to science and technology enterprises in Hong Kong and the Mainland, the Productivity Bureau officially established the "Overseas Service Center" in conjunction with Zhongguancun Beijing-Hong Kong-Macao Youth Innovation and Entrepreneurship Center, the Yangtze River Delta National Technology Innovation Center and the Guangdong-Hong Kong-Macao Greater Bay Area National Technology Innovation Center on the 11th.

This is not the first project of the Productivity Bureau to support enterprises to go overseas. In the past 10 years, the agency has completed more than 1,400 intelligent projects in the Guangdong-Hong Kong-Macao Greater Bay Area, and has promoted the establishment of a service base and R&D center for the "9+3+1 Development Plan" to support small and medium-sized enterprises to "go overseas" with high quality.

As far as Hong Kong is concerned, there are many possibilities for the development of innovation and science, and a new industry empowered by innovation and science is one of them. The SAR government previously announced that Hong Kong's "manufacturing and new industrial industries" revenue in 2023 will reach more than HK$76 billion, a year-on-year increase of 7.6%. Sun Dong, Director of the Innovation and Technology and Industry Bureau of the SAR Government, said: "No matter what the external environment is, Hong Kong's industries should move forward steadily in the direction specified by the blueprint for innovation and science development."

The government helps: take multiple measures to expand the market

While the business community calmly responds, the SAR government has also deployed and introduced a series of measures to take a multi-pronged approach to respond actively.

On April 8, the Hong Kong Monetary Authority worked with the Hong Kong banking industry to launch support measures for individual industries, further assisting more small and medium-sized enterprises in obtaining bank financing and upgrading and transformation; on the 10th, the Hong Kong Export Credit Insurance Corporation launched three measures to support Hong Kong's export trade; on the 11th, Chen Meibao, Director of the Transportation and Logistics Bureau of the SAR Government, pointed out in an interview that it will introduce five major strategies, including facilitating re-export of the amendment, strengthening cooperation with Greater Bay Area ports to "pull goods", and simplifying customs declaration, to assist the shipping industry in coping with tariff pressure.

In addition to policy support, Hong Kong Special Administrative Region Chief Executive Li Jiachao will visit the Middle East in May to "go global" with mainland enterprises to help small and medium-sized enterprises cope with difficulties.

"Hong Kong has experienced countless storms, and each time it can become more vigorous in challenges." Li Jiachao recently said when meeting with the media: "We will continue to pursue a free trade policy, attracting all over the world to come to Hong Kong for trade and investment, and enjoy Hong Kong and China's opportunities."