Hong Kong’s economic recovery is likely to be hindered by America’s decision to impose a 10 per cent tariff on Chinese goods, with the move to also exacerbate the woes of small and medium-sized enterprises, business leaders and lawmakers have warned.
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They also said on Saturday that the local government was facing increasing pressure to improve its financial health with the next budget, which will be unveiled later this month.
The city recently posted the latest growth estimate for 2024, predicting a rise of 2.5 per cent year on year – a figure at the lowest end of the government’s forecast.
Willy Lin Sun-mo, chairman of the Hong Kong Shippers’ Council, said the tariffs would increase the burden on small and medium-sized businesses as they lacked the capital and manpower to expand their manufacturing facilities to locations outside mainland China.
“We will face more uncertainties under US measures as they have many ‘weapons’ and tools to take various actions,” he said.
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Lin said larger companies had already expanded their production facilities to places in Southeast Asia, Latin America and the Middle East to cater to the regulations of various countries.