Posted by MoneyMachineMaker发发发 > 2020-06-09 09:59 | Report Abuse

With Hong Kong mainly serving as an entrepôt for the mainland Chinese market, direct trade in goods forms only a minor part of the economy. Its own manufactured goods could be subjected to US trade war tariffs, but the effect would be minimal.
Hong Kong’s government had anticipated “all the different scenarios” of Trump’s announcement, said Hong Kong Finance Secretary Paul Chan Mo-po, adding that revoking the city’s special treatment status would have little impact as the local economy was dominated by the services sector.

Posted by MoneyMachineMaker发发发 > 2020-06-09 09:59 | Report Abuse

Questions also remain as to whether the US can avoid sanctions on the financial sector because of the negative impact it would have on American firms.
Nonetheless, the move will sharpen pre-existing anxieties about Hong Kong’s long-term viability as Asia’s premier business hub.
Potential controls on access to American tech goods may also damage China’s plan to use Hong Kong as an R&D and financial spoke of its Greater Bay Area blueprint for South China.
“The biggest consequence is that the US decision is accelerating both the demise of Hong Kong’s importance to China and the world, as well as the decline of China’s economy,” said Chen Zhiwu, director of the Asia Global Institute at Hong Kong University.
The removal of Hong Kong as a buffer between China and the West had put two “conflicting regimes” on a collision course, he said. “When this mitigating role is gone as Hong Kong becomes just another city of China, the clash will be 100 per cent direct and literally face-to-face, which is detrimental to China’s development and undermines its ability to rise, peacefully or otherwise.”

Posted by MoneyMachineMaker发发发 > 2020-06-09 09:59 | Report Abuse

Earlier in the week, sources close to the White House said that revoking Hong Kong’s status was the “nuclear option”, which was on the table but likely to be kept in reserve.
Taken to its full potential, Hong Kong will lose its special customs status, but remain a free port and World Trade Organisation member, meaning it will continue to trade on most-favoured-nation terms with the United States.
“The US’ move to discontinue the separate trade status is more significant in the context of US export controls than it is with broader trade in goods,” said William Marshall, an export controls specialist at law firm Tiang & Partners. “Hong Kong will be subject to those controls applicable to China, which would certainly negatively impact China's vision for Hong Kong as an R&D hub under the Greater Bay Area plan.”
The peg of Hong Kong’s currency with the US dollar, in place since 1983, is unlikely to be affected, as
the local government is sufficiently well armed with US dollars to support it.
“The peg is very unlikely to be in danger. In the short-term, we could see increased volatility in capital flows and the Hong Kong dollar exchange rate against the US dollar, especially if the US government were to take bolder action on Hong Kong’s special status,” said Louis Kuijs, Asia economist at Oxford Economics.
“It is possible to see the HK dollar-US dollar exchange rate to hit the weak side of the trading band as a consequence. However, we think that the peg with the US dollar is unlikely to succumb, given the sheer size of foreign exchange reserves, at US$441 billion in April, is twice the size of the monetary base,” he said.

Posted by MoneyMachineMaker发发发 > 2020-06-09 09:59 | Report Abuse

Crucially, uncertainty regarding the city’s future as a global financial centre could “potentially jeopardise the ability of Chinese firms to access financing and purchase overseas deals” out of Hong Kong, said Carlos Casanova, Asia-Pacific analyst at insurance firm Coface.
About half of China’s total outbound investment flows through Hong Kong, with some of the world’s biggest deals over the past decade financed via the city, which also acts as the largest source of inbound investment to China.
Markets took Trump’s pronouncement in their stride. The Hong Kong dollar strengthened after the announcements, while the Hang Sang futures index was up 0.6 per cent on Saturday morning. Meanwhile, Chinese stocks listed in New York, including Alibaba (which owns the South China Morning Post), Baidu, and JD, all rose in Friday trading.
Tara Joseph, president of the American Chamber of Commerce Hong Kong, said that Trump’s announcement “did not mean US companies will be flipping a switch in Hong Kong and running for the exits”.
“There are many unanswered questions about how the US-Hong Kong special status could be unwound. The more clarity business receives, the more helpful it will be at this challenging juncture,” she said.

Posted by QueenElizebeth IV > 2020-06-09 10:01 | Report Abuse

Afraid of what??? USA not the only country and not the boss anymore.. Look at USA now.. Its hypocrats. Its lies. Its fake news. Hongkong Will be more. Prosper later after CCP clean up the traitors...

Posted by ChinaDragon > 2020-06-09 10:03 | Report Abuse

ChinaDragon speaking beep beep:
The best Trump decision made over the last three years, well done. I hope his decision would stop American products (eg. agriculture/seafood/fruit produces, electrical machinery, art and antiques, etc. etc.) selling to Hong Kong. This would definitely reduce Hong Kong trade deficit of $33.4 billion with US, Hurrah! HongKongers could save some more money for themselves or retiring their bank mortgages earlier.
Finally Trump should really mind his own business especially USA is ON FIRE over the week, for example, over 100,000 death of coronavirus, economy is still free fall, spreading conspiracy on Joe Scarborough in his tweets, Central Park racist incident, murder in Minnesota, Americans were outrage for Trump tweets threat that 'looting' will lead to 'shooting', inequality in USA, Twitter CEO finally told Trump his organisation will point out Trump’s Incorrect or Disputed Information, etc. etc. Any sensible responsible President/Prime Minister would fix up its own problems before minding other country’s own business. However Trump is consistently ignoring all American problems such as refusing to even acknowledge on the day when US coronavirus death reached 100,000, the seriousness of coronavirus earlier and kept playing down the coronavirus threat, but the best one must be advising Americans to inject disinfectant into their body to cure coronavirus, etc. etc.

Posted by WellingtonSky > 2020-06-09 10:04 | Report Abuse

Haaaaaa QueenElizebeth IV! Chinese prosperity is the majority of citizens living on less than $10USD/day. HK is richer than that, don't take them down with you.

Posted by ChineseKungFuMaster > 2020-06-09 10:08 | Report Abuse

hmmmm

Posted by ChineseKungFuMaster > 2020-06-09 10:09 | Report Abuse

US intervention is what the naive separatist youngsters want. Here it comes, enjoy!!.

Posted by ChineseKungFuMaster > 2020-06-09 10:10 | Report Abuse

But youngsters certainly don't qualify. They prefer their US boss not the weakened Brexit UK..

Posted by WellingtonSky > 2020-06-09 10:11 | Report Abuse

Time to make Taipei or Kaohsiung the new Hong Kong!

Posted by AndyChin77 > 2020-06-09 10:12 | Report Abuse

Hong Kong will wither and die. But that’s what the RIOTERS were leading the city to since last year already.

Posted by SunnyWong > 2020-06-09 10:13 | Report Abuse

AndyChin77 ... No, withering and dying was Beijing's plan.... Beijing wants Hong Kong to be just another Chinese city, problem with that is Hong Kong loses it competitive advantage when that happens.

Posted by DoubleProsperity > 2020-06-09 10:14 | Report Abuse

Eh, what?

Posted by AndyChin77 > 2020-06-09 10:14 | Report Abuse

SunnyWong So true, but these idiots are unemployed so they have little to lose.

Posted by FOOK YOU FOOK ME > 2020-06-09 10:15 | Report Abuse

According to the Chinese calculus, rather sacrifice Hong Kong a bit than to lose the whole country China. Trump's stupidity has cut American influence in the city. Not to mention, it hurts American business.

Posted by GothicRock > 2020-06-09 10:16 | Report Abuse

Yes and call KaoHsiung the IFCC. International Fried Chicken Center

Posted by XmenOrigin > 2020-06-09 10:17 | Report Abuse

AndyChin77 ,Hong Kong's advantage over mainland cities was rule of law, independent judiciary, common law, english language laws, and some protection from the autocratic regime across the border!. If just another Chinese city, those companies and investors that chose Hong Kong as a business hub will look elsewhere.

Posted by SunnyWong > 2020-06-09 10:18 | Report Abuse

Yes agree with XmenOrigin...

Posted by Zoologist > 2020-06-09 10:19 | Report Abuse

I think the measures announced by Trump is actually very lenient on HK. The largest sector which US businesses have the highest level of investment in HK is the financial sector and this is completely untouched by Trump’s measures.

Posted by QueenElizebeth IV > 2020-06-09 10:24 | Report Abuse

Go US UK wherever, China would gladly like to see this trouble maker out!

Posted by SweetMemoryLane > 2020-06-09 10:25 | Report Abuse

So - it is Trump that has cut American influence in HK? Because the Xi fantastic are saying that the Security Laws were necessary to drive out American spies from HK! lol

Posted by SweetMemoryLane > 2020-06-09 10:26 | Report Abuse

QueenElizebeth IV

Why did they riot in the first place? They rioted to defend Hong Kong from Communist aggression. End Communism = Protests Will End!

Posted by LOVE IS IN THE AIR..... > 2020-06-09 10:26 | Report Abuse

HK is rich because of its unique position and economic tie to China. Think again.

Posted by FantasticBeast > 2020-06-09 10:31 | Report Abuse

1. The National Security Laws - approved by the Communists - come into effect in August.
2. Between now and August Trump will cripple Communist Party influence in North America and cripple trade with the CPC.
3. This will seriously hurt the Communists and they need hard currency from foreign trade to finance their big domestic and BRI projects.
4. Most likely Trump is going to make the November Presidential and Congressional elections all about Xi, the Communists, the PRC's trade practices, their spies throughout America, their oppression of Hong Kong and their enslavement designs on Taiwan.
5. If Trump wins in November (and I hope he does) then Xi and the Communists are going to find the years 2021-2015 to be destructive of their ambitions and their careers!
6. Glory to Hong Kong! Freedom for all!

Posted by gooddaymate > 2020-06-09 10:32 | Report Abuse

Yes XmenOrigin and Singapore must be smiling.

Posted by gooddaymate > 2020-06-09 10:32 | Report Abuse

good day matey

Posted by gooddaymate > 2020-06-09 10:33 | Report Abuse

......Capital flow and movement is not as free in Taiwan as it is in HK. The only place capable of taking the crown jewel from HK in the region is Singapore. Hooray....

Posted by RAMPAGE GODLIKE ! > 2020-06-09 10:34 | Report Abuse

QueenElizebeth IV, Are you sure your referring to the USA? It seems when you write USA your truly saying China and the Communist Party!

Posted by RAMPAGE GODLIKE ! > 2020-06-09 10:36 | Report Abuse

hehe

Posted by alipay88 > 2020-06-09 10:37 | Report Abuse

"he did not set a timeline, nor did he announce specific details as to which economic privileges would be removed, leaving uncertainty over what the US would actually do." I see Trump is leaving enough room to later backtrack or basically imposed trivial "slaps on the wrists" just to say he did something on the matter, lol.

Posted by Zillionaire > 2020-06-09 10:38 | Report Abuse

alipay88 ,Once you cut trade ties to Hong Kong, you lose your influence. Period.

Posted by SweetiePie > 2020-06-09 10:39 | Report Abuse

Cik QueenElizebeth IV, It is not communism that these idiots are fighting. They are fighting for independence. That is why China wants the NSL in HK after violent protest to ensure a peaceful environment.

Posted by DatoSriLuvGuru > 2020-06-09 10:40 | Report Abuse

Love peace and joy......

Posted by DatoSriLuvGuru > 2020-06-09 10:40 | Report Abuse

NAMASTE

Posted by FortunerLiew > 2020-06-09 10:40 | Report Abuse

Why end communism? Communist government has done a great job containing the pandemic. It has its problems. But it has its successes. Trump is just bumping his head onto a brick wall. He ain't ending anything.

Posted by FortunerLiew > 2020-06-09 10:41 | Report Abuse

Guys......Do you know what the U.S has on its hands right now? An out-of-control pandemic, a 30% unemployment and riots across the country. If the USA wants an all-out trade war, it will send the U.S into chaos.

Posted by XxXTripleXxX > 2020-06-09 10:43 | Report Abuse

China always say HK is unimportant yet now says HK affects the whole of China. What exactly has HK done to make china so insecure? HK always gone on with their ways of life and it is only these few years that HK had been affected by the mainland............

Posted by AndyChin77 > 2020-06-09 10:44 | Report Abuse

There are many reasons to be worried about HK’s future. First of all , HK will be just another Chinese city. There will be no special about HK. Businesses will prefer Chinese cities like Shenzhen due to cost factor. Financial institutions will move out of HK to other places .

Posted by RangeRover222 > 2020-06-09 10:45 | Report Abuse

I reckon someone is eyeing our trillions in fiscal reserves and Exchange FUND.

Posted by RAMPAGE GODLIKE ! > 2020-06-09 10:46 | Report Abuse

AndyChin77......Nothing stays on forever. Preserving HK as it was is like preserving a dead fossil?

Posted by QueenElizebeth IV > 2020-06-09 10:47 | Report Abuse

HK will thrive with the national security law! end

Posted by FOOK YOU FOOK ME > 2020-06-09 10:47 | Report Abuse

GUYS! That was always going to be the case, irregardless of the US stripping HK of its special status. HK was already in decline, it would've been a long and slow death either way.

Posted by XmenOrigin > 2020-06-09 10:48 | Report Abuse

wow

Posted by QueenElizebeth IV > 2020-06-09 10:49 | Report Abuse

Maybe after the crash and burn HK and be reborn without being a 1 - 2 trick monkey aka parasitic economy that actually have something of value to offer to China and the world?

Posted by QueenElizebeth IV > 2020-06-09 10:49 | Report Abuse

.....Well cities like Shenzhen, Shanghai, etc has much to offer unlike HK which is basically just a low tax heaven......

Posted by QueenElizebeth IV > 2020-06-09 10:50 | Report Abuse

2021-2015.... times works backward for Chinese hating yellow ribbons, that explains why they think HK is as irreplaceable as decades ago. haha

Posted by Kenny Chua > 2020-06-09 10:51 | Report Abuse

QueenElizebeth I, your saying Hk is being ruined by the US supported democratic riots. With the new security law, hopefully hk will regain the stability n security it had been enjoying before the riots.
US is going to contain China as it threatens the former 's leadership. Whatever the excuses, an all out strike by uncle sam to China is inevitable. For example, mainland companies will not be able to get capital from New York Stock Exchange. Instead , they will come to hk.
All in all, with the loss of preferential status from US but the return of security n stability , hk is likely to thrive in the other way. I think your wrong in many ways!

Posted by Kenny Chua > 2020-06-09 10:52 | Report Abuse

plus us$23 trillion ever increasing debt.....

Posted by traderstrades > 2020-06-09 10:53 | Report Abuse

Zoologist, Not lenient but dares not to do so. Though he is insane, he wouldn't shoot on his own foot.