Broad estimate of Special 301 Action's potential impact on HK's economy completed
The Government has completed a broad estimate of the potential impact on Hong Kong's economy, if the US impose punitive tariffs on Chinese products on the retaliation list which the US Government published on February 4 under its Special 301 provisions.
The US list of Chinese products includes such articles as plastic articles, answering machines and cellular phones, sporting goods, wooden articles and bicycles, with a total value of about US$1.08 billion.
"If the US list was to be implemented, because of the 100 per cent punitive tariff, it is possible that up to 2.3 per cent or HK$4.5 billion (US$0.58 billion) of Hong Kong's re-exports from China to the US would be affected," a Trade Department spokesman said.
"Taking into account the likely spill-over effects on other trading and economic activities, this could affect up to 4,700 jobs in Hong Kong and up to 0.14 of a percentage point of the GDP growth in the year of incidence." "The actual impact on specific sectors would vary, depending on the circumstances of the individual industries or companies in Hong Kong," the spokesman said.
On Government's further action, the spokesman reiterated that the matter was a bilateral trade issue between China and the US, and should be resolved by the two sides through bilateral negotiations.
"We are pleased to note that the two sides will continue talks on February 14. It remains our hope that there the talks will lead to a mutually satisfactory solution, thus averting any retaliation," the spokesman said.
"At the same time we have been providing the trade with information and analyses. We are also aware, through contacts with the relevant trade associations, that some industries would like to have specific, technical advice on how they might be affected, if the list was implemented.
"We have approached these trade organisations to offer such advice. Where possible we will consider providing similar specific information and advice to traders who are concerned about the matter," he said.
"The Government will continue to take vigorous enforcement action within Hong Kong to stamp out violations of intellectual property rights," the spokesman added.