Photographer: Daniel Acker / Bloomberg
Photographer: Daniel Acker / Bloomberg
The US will rule that imports from Hong Kong will be marked as ‘Made in China’ according to a government document, in the latest escalation of trade tensions between the two nations.
De notice, published in the US Federal Register, says that goods produced in Hong Kong and imported into the US must be marked to indicate that their origin is China. This will begin after September 25, the document said.
The actual impact of the new rules on trade as Hong Kong’s economy is likely to be limited, as there are not many direct exports from the city to the US. The vast majority of shipments from the city to the US consist of re-exports, or goods shipped through their territory with no substantial modifications.
Of Hong Kong’s roughly HK $ 304 billion ($ 39 billion) in exports to the US last year, only about 1.2% were domestic exports, according to data from the Hong Kong Census and Statistics Department. Nearly 80% was re-exports from China to the US
The change was made because of President Donald Trump’s presidential order in July ending Hong Kong special status with the US “due to the finding that Hong Kong is no longer autonomous enough to justify differential treatment in relation to China,” the statement said.
The Hong Kong government protested the announcement, saying it ignored Hong Kong’s “unique role” as a member of the World Trade Organization. The city government will discuss the decision with the U.S. through its Washington DC office, according to its statement, and has not ruled out taking action against the U.S. decision.
Trump ends Hong Kong’s special status with US to punish China
The US decision comes to China announced sanctions on 11 Americans in retaliation for similar measures imposed Friday by the US.
– Using Chelsea Mes, and Apple Lam
(Updates with comment from Hong Kong Government in penultimate paragraph.)
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