4
Most papers attributed the threat to the preferential trade status to China's human rights record and her trade surplus with the US. It was worried that cancellation of the trade status would seriously undermine HK's economy.
The HK Economic Times (22.4) noted that local manufacturers who had relocated their production lines to mainland China would face heavier taxes should anything happen to China's preferential trade
status.
The paper predicted that insurance, transport and other service industries for trade and finance would suffer. While HK investors kept their fingers crossed, the paper said that they should prepare for the
worst.
Sing Pao (22.4) noted that HK's re-exports of Chinese origin to the US in 1990 amounted to HK$82 billion. Without the MFN status for China, HK's GPD growth could be adjusted downward by 1.3 to 1.8 percentage points. The paper said this indicated the extent of damage should it occur. The paper hoped that like last year, China would be granted the MFN status.
The HK Economic Journal (20.4) was more optimistic. It said that should China's MFN status be revoked, the impact on HK, however, serious, would be short-term. This was because HK manufacturers who used to set up factories in China could easily move their factories to South-east Asia or South America.
The paper added that it would be interesting to see whether China would adjust her political measures in order to secure MFN treatment by the US. If China was prepared to put its economy first and politics second, this would auger well for HK after 1997 and HK people could look forward to continuing the present systems under China's pursuit of economic prosperity. Should China put politics first, a lot of doubts would arise among HK people over the future, the paper said.
On local efforts to fight for renewal of the MFN status for China, Wen Wei Po (20.4) noted that the lobbying work by Omelco members had a special significance. The paper said that as the interests of HK and China were closely tied together, efforts to secure the trade status for China would also benefit HK.
The Express (22.4) said that lobbying efforts by HK would help encourage President Bush to renew the MFN status for China. The paper, however, regretted that despite HK's efforts, China did not seem to trust HK in many areas.
The HK Times (22.4) noted that it was unlikely that the HK businessmen who lobbied the US on China's behalf would advise China to improve her human rights record. The paper said that by doing so, these HK businessmen would also have to take up part of the blame for China's deeds as far as human rights were concerned.
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