Made in Hong Kong Label Will Vanish, New Tariffs Start

New Tariffs on Goods From Hong Kong

Under national security law: Hong Kong’s US exports to be relabelled ‘Made in China’ starting September 15.

The move, in accordance with the suspension of the Hong Kong Policy Act of 1992 and the invoking of US President Donald Trump’s executive order on “Hong Kong Normalisation”, will see Hong Kong companies subjected to the same trade war tariffs levied on mainland Chinese exporters, should they make products subject to these duties.

The move is “due to the determination that Hong Kong is no longer sufficiently autonomous to justify differential treatment in relation to China”.

The main drawback is US corporations will no longer be able to sell some exports to Hong Kong. 

Analysts have said that the more significant among the flurry of US trade actions against Hong Kong in recent weeks has been the rolling out of export controls, which means importers in the city cannot access certain sensitive American technology. This could hamper university research and even access to consumer technology, analysts and industry figures have warned.

Trumpian Logic in Question

Once again we have a peculiar Trumpian security setup.

If selling “sensitive” goods to Hong Kong is a security risk, it already was a security risk.

The Chinese crackdown on Hong Kong did not change any security risks. 

If there was no security risk last year, there is none now. If there is a risk now, the same risk existed a year ago.

Hong Kong Distances From US Suppliers 

Arthur Lee Kam-hung is the CEO of Hong Kong X’tals, a manufacturer of hi-tech components used in 5G base stations and autonomous vehicles. His firm sells some products out of Hong Kong, but he said the new rules will not affect him much, since the company has already distanced itself from an “outdated” and “volatile” American market.

Lee added that the trade war made him diversify some material sourcing away from the US, but that Trump’s policies and sanctions make him “very worried” about dealing with the US. “We will hold off on any investment or sourcing on the US market,” he said.

Trump already drove Hong Kong importers away from US producers. 

We call this a “Win”.

Mish

Subscribe to MishTalk Email Alerts.

Subscribers get an email alert of each post as they happen. Read the ones you like and you can unsubscribe at any time.

This post originated on MishTalk.Com

Thanks for Tuning In!

Mish

Subscribe
Notify of
guest

11 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
yopol15193
yopol15193
3 years ago

The U.S. cut off its exceptional exchange association with Hong Kong with an Executive Order on Hong Kong Normalization, given on July 14, because of the Chinese government’s choice “to singularly and self-assertively force public security enactment” there in the midst of support of vote based system fights. https://postalexperiencecompos.techCBP's documents in the Federal Register followed the leader’s request to clarify marking changes for shipments rolling in from Hong Kong.

yopol15193
yopol15193
3 years ago

The U.S. cut off its exceptional exchange association with Hong Kong with an Executive Order on Hong Kong Normalization, given on July 14, because of the Chinese government’s choice “to singularly and self-assertively force public security enactment” there in the midst of support of vote based system fights.https://postalexperiencecompos.tech CBP’s documents in the Federal Register followed the leader’s request to clarify marking changes for shipments rolling in from Hong Kong.

qnzromeovc
qnzromeovc
3 years ago

It is the same with his Aluminium tariffs against that security risk country of Canada. America’s Aluminium producers/manufacturers will be at a disadvantage against their international competitors. More losing. link to prepaidcardstatus.tips

link to prepaidcardstatus.tips

Webej
Webej
3 years ago

So the West is worried that Hong Kong is being drawn into China’s policy orbit, and to punish the Chinese, it will drive Hong Kong further into the China’s trade and economic orbit.

It’s like when your kid tracks dirt into the house, you punish him by making his boots muddy.

Augustthegreat
Augustthegreat
3 years ago

Hong Kong is among the few countries/regions with which America has been having trade surplus. In 2019, the USA export to HK was $30,782.8 M, while import was $4,734.5M, resulting in a surplus of $26,048.3M. tRump wants to destroy this surplus.

mapquestdirections
mapquestdirections
3 years ago

The US and China have a lot of clues about what will happen and which countries will benefit from it. https://mapquestdirectionss.com

Jojo
Jojo
3 years ago

Doubt this is mapquest. Some kind of spam or scam trick.

Registrar Information

Name: NAMECHEAP INC
IANA ID: 1068
URL: http://www.namecheap.com
Abuse Contact Email: abuse@namecheap.com
Abuse Contact Phone: +1.6613102107 

Felix_Mish
Felix_Mish
3 years ago

@Mish Watch out for going full Zeno’s Paradox. That’s when one fusses about a binary change of policy along a continuous spectrum. E.g. Objecting to someone saying, “It’s now night, not day.” Because, if it’s night, why wasn’t it night 10 minutes ago!?!

Sechel
Sechel
3 years ago

I don’t have a problem with Hong Kong goods saying Made in China per se. China essentially controls sovereignty except Trump’s motives are very suspect. So while I don’t have a theoretical issue I think Trump is using Hong Kong for his own political an personal reasons. He’s putting his interests above the nations and that troubles me. Trump is undoing everything Richard Nixon did in opening up China. And while some may lament a seemingly unfair balance of payments declaring war against China is not a winning strategy for the United States.

ColoradoAccountant
ColoradoAccountant
3 years ago
Reply to  Sechel

You thunk? Of course.

TonGut
TonGut
3 years ago
Reply to  Sechel

Nixon’s wining and dining did nothing? China opened up because Mao’s reign of mass repression, murder of millions and starving of tens of millions caused a violent backlash culminating at Tiananmen Square, which of course resulted in a healthy fear of “The People” ever since. Now, we are driving China back into autocracy. So, we’re not undoing Nixon, we are redoing Mao.

Stay Informed

Subscribe to MishTalk

You will receive all messages from this feed and they will be delivered by email.