The hottest topic in Hong Kong recently is inevitably the trade-war between China and the US. From steel and aluminum to fashion, food, and fruit, the United States has imposed tariffs on a total of USD 250 billion worth of Chinese goods, some effective from July 6^th. 2018.

Technically, Hong Kong is to be shielded by a US deal, called the United States-Hong Kong Policy Act, which means the country has treated the city separately from China in terms of trade, export, and economics since the return of its sovereignty from Britain to China in 1997. Hence, the tariffs the US slapped on China do not apply to Hong Kong.

However, Hong Kong, which has served as the re-export hub between the two nations for decades, and whose biggest trade partner is China, is inevitably sandwiched between the two sides.

Many companies and associations have started altering their business strategies with less reliance on Hong Kong’s economic health may slow down in the second half of the year under the “dark cloud” of a deteriorating US-China trade war. nance Minister, Government officials, major chambers of commerce and small and medium enterprise associations held many meetings these days to discuss the impact of trade-war to Hong Kong. Said by Hong Kong FiUS market and the Middle East would be one of their options.

With the uncertainty of upcoming movement, US-China trade war can be a threat or an opportunity for UAE-based companies, OTO HK continues to keep watch all opportunities for exporters and provides assistance when requires.

Source: South China Morning PostHKSAR Government News Portal (http://news.gov.hk)