Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, with the performance impact of the U.S. tariffs on Hong Kong’s exports, analysts expressed the belief that Hong Kong’s economic growth this year may not be able to meet the two percent target expected by the SAR government.
Leung Sak-ki, senior adviser to Hong Kong’s Hang Seng Bank, said that, under the China-U.S. tariff war, trade between the two countries has almost completely stopped. Hong Kong’s exports have fallen significantly, and the outlook for the 2-percent economic growth this year is not optimistic. Hong Kong companies have actively explored new markets in the past, and the proportion of the U.S. market in Hong Kong’s re-exports has decreased. Even if the U.S. tariffs cause Hong Kong’s exports to fall, the situation will not be as bad as the COVID-19 period. However, the tariff war may prevent mainland China from reaching its five percent economic growth target this year. In the long run, the Chinese authorities need to open up the market and stimulate domestic demand.
Source: Lianhe Zaobao, April 20, 2025
https://www.zaobao.com.sg/news/china/story20250420-6216837