Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Hong Kong finance chief Paul Chan says city has nothing to fear from Donald Trump sanctions over national security law

Experienced in dealing with crises, city will aim to strengthen trade ties with Europe, Japan. ‘Little impact’ from Trump’s measures as exports to US account for only 0.1 per cent of total exports

The United States’ decision to revoke preferential treatment for Hong Kong will have “little impact” on the city’s economy, according to Financial Secretary Paul Chan Mo-po.

He said Hong Kong was experienced in handling financial challenges, had anticipated a fallout from worsening China-US trade friction, and had nothing to be afraid of.

Given US action targeting the city and restricting exports of high-technology products, he said Hong Kong should aim to strengthen ties with other trading partners, including countries in Europe and Japan.

He said this in an interview with Global Times, a nationalist tabloid affiliated with the Communist Party mouthpiece People’s Daily, hours before President Donald Trump’s official announcement on Friday that the US would begin eliminating Hong Kong’s special policy exemptions.

Earlier, amid concern over Beijing’s decision to draft a national security law tailor-made for Hong Kong, US Secretary of State Mike Pompeo declared that the city no longer maintained a high degree of autonomy from the mainland.

Chan told the mainland tabloid that Hong Kong products made for export to the US “accounted for less than 2 per cent of the city’s overall manufacturing”, worth about HK$3.7 billion, and were less than 0.1 per cent of the city’s overall exports.

“We have been preparing for all the different scenarios,” he added.

He reiterated the government’s position that Hong Kong’s status as a special administrative region (SAR) of China was enshrined in its mini constitution, the Basic Law, which has been in place since Britain returned the city to Beijing in 1997.

Referring to the World Trade Organisation, he said: “The law permits Hong Kong to join the WTO as Hong Kong, China, showing that the SAR’s independent tariff zone is granted by the mainland, not by any foreign country.”

Hong Kong enjoys a “special status” as a separate customs territory with zero-tariff trade with various other trading partners, and since 1997 had low or no tariffs with the US, unlike other mainland cities.

Given Trump’s latest moves and tightened restrictions on tech exports from the US, Chan said Hong Kong should strengthen trade relations with trading partners in Europe and Japan, which could provide alternatives to products from the US.

He was confident the measures imposed by the US would have little impact because Hong Kong’s economy was dominated by the services sector.

He also assured the city’s business sector that the proposed national security law would not result in restricted capital flows or foreign exchange control.

“When we talked with foreign business representatives last year, many raised the same concern about Hong Kong's investment environment: the city's security, which had been severely affected by the social unrest,” he said, referring to the months of increasingly violent anti-government protests triggered by an unpopular extradition bill which was withdrawn.

As for foreign investors in the city, he said: “As long as foreign investors are not engaged in activities relevant to national security matters, they have nothing to worry about.”

He added that there had been no palpable outflow of capital according to banking and asset management business representatives, but stressed that the city’s authorities remained “highly cautious” over security of the financial markets.

“Two years ago when China-US trade friction began, the Hong Kong SAR studied the situation, forecasting that confrontations might spread from trade to other sectors, likely finance. We've prepared for it,” he said.

“We have confidence and experience dealing with challenges as the financial market in Hong Kong has gone through a lot. With support from the whole country, we have nothing to be afraid of.”




AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×