Hong Kong authorities have rolled out three new measures to insure local small and medium-sized enterprises (SMEs) against pre-shipment risks amid the escalating US-China trade war, including providing a 50 per cent premium discount and extending the free protection period.
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The measures, which took immediate effect on Thursday, were revealed a day after US President Donald Trump announced that he would be applying a 125 per cent tariff for China while implementing a 90-day pause that set levies at a “baseline” 10 per cent for most countries.
The pre-shipment risk insurance protects businesses from financial losses if an order is cancelled before shipment due to reasons from the buyers’ side, such as insolvency, repudiation of contract and country risks.
Separately, Chief Executive John Lee Ka-chiu called on Hongkongers abroad to promote free trade in the international arena while actively investing in their home city.
He also appealed to Chinese overseas to advance global cooperation to allow more international companies and talent to settle in Hong Kong and mainland China.
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The three measures for SMEs, launched by the Hong Kong Export Credit Insurance Corporation, include extending the free pre-shipment risk cover for policyholders of the “Small Business Policy” to June 30, 2026.