US-China trade breakthrough ‘could signal the worst is over’ for Hong Kong, says commerce chief Edward Yau
- But only after ‘existing high tariffs’ are cancelled can certainty be restored, says Yau
- Local economy has taken a beating from tit-for-tat tariff spat, as well as recent unrest
Friday’s trade war breakthrough between China and the US could mean the saga is bottoming out, signalling a more positive economic outlook for Hong Kong, the city’s commerce minister said on Saturday.
But he said that only after “existing high tariffs” were cancelled could certainty be restored for trade between both sides and Hong Kong, whose traders frequently act as middlemen in import and export between the world’s two biggest economies.
“The deal still hasn’t been signed. Practically, the tariffs still haven’t reversed. So it’s too early to say there will be an immediate recovery for the global or regional economy,” Yau said.
“But looking ahead, when it can bottom out and be relieved gradually with cancellation [of the tariffs] step by step, this helps next year’s economic outlook.”
