Independent trade-oriented Hong Kong braces for Trump's escalating tariff attacks
In the ongoing global trade disputes, Hong Kong finds itself at a critical juncture. The city's interests, primarily advocated by its government and economic agencies, international trade chambers, and business delegations such as the German Chamber of Commerce Hong Kong (GCC) and the German Industry and Commerce Delegation (GIC), are centred around a free and open multilateral trading system.
With international trade amounting to a staggering 359% of Hong Kong's gross domestic product, the city ranks among the most trade-dependent economies in the world, trailing only behind Luxembourg and San Marino. This heavy reliance on international trade makes Hong Kong particularly vulnerable to the protectionist measures being proposed by certain world powers.
One such power is the United States, under the leadership of President Donald Trump, who has unleashed a wave of protectionist measures on the global trading system. The suspension of US parcel shipments is expanding as the end of tariff exemptions approaches, posing a significant threat to Hong Kong's economy.
France, on the other hand, has a trade dependency of 60%, a lower figure compared to Hong Kong. However, both economies pale in comparison to the US and Mainland China, the world's largest exporters, whose economies are less dependent on international trade (25% and 34% respectively).
The World Trade Organization (WTO) is currently under threat from these protectionist measures proposed by the US administration. If the WTO is dismantled and international trade is mired in tariffs and protectionism, Hong Kong stands to lose significantly. Yet, Hong Kong's voice seems to be absent in the ongoing debate about the future of the global trading system.
Some argue that despite being a special administrative region of China, Hong Kong does not defer to Beijing's leaders in the global trade battle. The city's government, however, appears to be absent in the face of this protectionist assault on the global trading system.
In the face of these challenges, it is crucial for Hong Kong to assert its interests and push back against the chaotic trade protectionism initiated by President Trump. The city's business community, represented by chambers such as the GCC and GIC, will play a pivotal role in advocating for Hong Kong's interests in the global trade arena.
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