Hong Kong re-exporters urged to remain cautious despite US-China trade talks
Economists suggest deal may benefit city, but warn of lingering volatility amid US President Donald Trump’s history of ‘creating crises’
The latest US-China trade talks may have alleviated concerns among some Hong Kong re-exporters, but the sector should remain cautious as American President Donald Trump’s administration has been accused of creating crises to gain bargaining power, observers have said.
High-level officials from the two nations concluded two days of talks in London on Wednesday, and Trump later announced a trade agreement had been reached with China.
Lin Jian, the spokesman for China’s Ministry of Foreign Affairs, said on Thursday that Beijing had always been true to its word and acted decisively on agreements.
“Since a consensus has been reached, both sides should adhere to it,” he said.
“[We] hope the US side will work with China to implement the important consensus reached during the phone call between the two heads of state, leveraging the role of the China-US economic and trade consultation mechanisms to enhance understanding, reduce misunderstandings, and strengthen cooperation through communication and dialogue.”
According to Trump, tariffs on Chinese exports to the United States would increase from 30 per cent to 55 per cent, while levies on American exports going the other way would remain at 10 per cent, pending his and Chinese President Xi Jinping’s approval, he said.