U.S.-China tensions are not good for Hong Kong, the city’s secretary for commercial and economic development said, urging everyone to recognize that the world’s common enemy ‘is the coronavirus pandemic.
“We are … seeing US-China tensions escalate, which is beneficial for Hong Kong, as well as for trade between the US and China. But while we are fighting the pandemic, I think the last thing you want is a further distraction that would disrupt or disrupt trade, “Edward Yau told CNBC’s” Squawk Box Asia “on Monday.
He pointed to the ‘economic scoreboard across the Pacific’, which shows a “very strong” correlation between how well a country has contained the outbreak versus its economic performance. He cited China as an example, where its economy was among the first to strike back after it was the first hit in the pandemic.
We must recognize that the common enemy … for the whole world … is the pandemic, it is the virus, not each other.
Edward Yau
The Secretary of Hong Kong for Commercial and Economic Development
But some other economies in the region have been hit by double-digit growth decline. Hong Kong’s growth slowed to an “unusual” decline of 9% in the second quarter, Yau said. The city’s economy has plummeted on a few fronts: pro-democracy protests, which are hurting businesses and tourism, and now the coronavirus. The city recently looked up again in cases, which led to restrictions again.
“If we can not contain Covid-19 individually and collectively, I think we are all taking the toll. So both sides, I say that well, maybe the economic tsunami that results from the Covid-19 … “I think that’s something we need to see, in particular that Hong Kong is so internationalized, so intertwined with our trade with the world,” Yau said. “I think we are well aware that we must take every step to combat Covid-19, as well as reduce all tensions that are unnecessary and unfair ().
Pedestrians wearing protective masks walk across a road in Hong Kong, China, on Friday, July 10, 2020.
Roy Liu | Bloomberg | Getty Images
Relations between Washington and Beijing have waned this year as both countries struggle over a range of issues ranging from the origins of the pandemic, to a controversial national security law and China’s claims to ownership in southern China. See.
Hong Kong has been embroiled in controversy. After Beijing imposed the National Security Act on Hong Kong, Washington said it would revoke the city’s special trade status with the US. This has raised fears that Hong Kong’s status as a financial hub could be eroded.
In addition, the U.S. government announced last week that goods made in the city and exported to the U.S. will have to be labeled as made in China instead of Hong Kong after Sept. 25.
When asked about this development, Yau referred to World Trade Organization rules stating that Hong Kong has the right to use its own labeling for its exports, adding that it “will deal with the US take over”
“We need to recognize that the common enemy … for the whole world … is the pandemic, it is the virus, not each other,” he said. “Unfortunately, I think we are being drawn into tensions on a geopolitical basis. But of course Hong Kong will be on soldier.”
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