‘Hong Kong must become global supply chain hub to navigate Trump's trade war'
Hong Kong must transform itself from a transshipment port into a global supply chain services hub to navigate a raging US-China trade war while leveraging its position as an international shipping and trading centre, industry leaders have said.
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Kennedy Wong Ying-ho, honorary president of the Hong Kong Chinese Importers' and Exporters' Association, said on Thursday that transitioning from being a re-exporting hub was crucial as the city was facing challenges amid growing trade protectionism worldwide and US tariff shock on small parcels.
'In the past, Hong Kong's trade was relatively simple. Our role as a 'superconnector' meant business was like buying with the left hand and being able to resell with the right. But now, the global supply chain is being reshaped,' Wong told a radio programme.
'Certain raw materials originate in one country or region, while a part of the manufacturing takes place in another country, and finally, the product goes for packaging and then transport to yet another location. Hong Kong needs to provide some high-quality services along the links of the supply chain.'
Earlier this week, the association released a study report on how Hong Kong could elevate its position from 'intermediary' to 'supply chain manager' by integrating advantages in professional services such as finance, law and insurance to provide comprehensive trade support throughout the entire cycle.
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The suggestions are in line with the budget blueprint by Financial Secretary Paul Chan Mo-po in February, in which mainland Chinese companies are encouraged to establish a presence in Hong Kong by setting up international or regional headquarters to facilitate offshore trading and supply chain management, and expand globally.
Wong, who is also an import and export sector lawmaker, added that Hong Kong should accelerate the development of new momentum in the 'airport economy' by building a highly efficient and high-value-added air cargo hub.
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