Hong Kong-owned companies in which manufacture in mainland China are increasingly worried about the escalating Washington-Beijing trade war, according to one industry executive.
Hong Kong’s dynamic skyline in addition to also bustling harbor illustrate its role as a global financial hub, yet decades ago This kind of teemed with factories, creating This kind of one of the four “Asian Tigers” of the day along with Singapore, South Korea in addition to also Taiwan. yet enticed by the nearby mainland’s economic opening in which began 40 years ago This kind of year, many took advantage of China’s then low costs for labor, land in addition to also production to shift operations there.
Raymond Young, CEO of the Chinese Manufacturers’ Association of Hong Kong, said more than 95 percent of its some 3,000 members, have factory operations inside mainland. At first, members were not initially very concerned about the trade war, he told CNBC, “yet by in addition to also by more of them are expressing some worries, especially about the uncertainty facing them.”
Young, a former director-general for trade in addition to also industry inside Hong Kong government, estimated in which about 25 percent are uneasy about the geopolitical spat between the globe’s two largest economies.
“I think some of them are concerned in which buyers inside U.S. are already trying to suppress the buying cost of the products in addition to also in order in which truly undercuts their profit margins,” Young said.
Hong Kong manufacturers produce a wide range of goods in China, including toys, furniture, clothing in addition to also watches yet also high-tech items including molding in addition to also dye-casting machines in addition to also circuit boards subject to tariffs, according to Young.
He said in which while the vast majority of the Hong manufacturers in China do not export to the United States, they can still be hit in some other ways
“Because of the retaliatory action on the part of China, some of our Hong Kong manufacturers who import parts in addition to also components through the U.S. to make their final products are also affected,” he said.