Hong Kong warned to ‘prepare for worst’ amid trade war uncertainty

Hong Kong warned to ‘prepare for worst’ amid trade war uncertainty

05/10/18

Luke Foddy, Communications Manager

Edward Yau, Hong Kong’s Secretary for Commerce and Economic Development, has issued a warning to the city as the US-China trade war begins to bite.

Unveiling measures aimed at protecting Hong Kong’s SMEs amid cooling investment, Yau predicted a long road ahead in the dispute between China and the US, the South China Morning Post reports.

“After discussing with the various chambers of commerce for the ninth time in the last seven or eight months, I think the general consensus is that the dispute between the US and China over trade is unlikely to be resolved in a short period of time,” he said.

“We therefore have to prepare for the worst and for this battle to be played long.”

His comments echo those of Larry Kudlow, the White House’s economic advisor, who said on Monday that President Trump is not satisfied with the progress being made in trade talks with Beijing, CNBC reports.

Asked if a breakthrough deal was close, Kudlow replied: “Nothing is imminent on China.”

Relations sunk further this week when US Vice President Mike Pence accused China of engaging in “predatory trade” practices and made wider political and military criticisms, as reported by CNN.

His remarks prompted a fierce backlash from Beijing, with state media outlet Xinhua reporting that China “firmly opposed” his claims and that “any malicious slander on China is futile.”

Relations between the US and China, and the impact of the trade war, will be key points of discussion at Asia House’s major trade dialogue in Singapore this November. Find out more