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27 Dec 2024
EU Proposes Ending Hong Kong's Special Tariff Treatment
Keywords
The European Parliament recently passed a resolution concerning Hong Kong, with an overwhelming vote of 473 to 23. The resolution explicitly calls for the revocation of Hong Kong's special customs tariff treatment, drawing significant attention and concern.
【EU Parliament Passes Hong Kong Resolution】
The news that the "European Parliament has decided to cancel Hong Kong's special tariff treatment" has sparked widespread discussion. Hong Kong, as a critical trade hub for mainland China, plays an irreplaceable role as a "transit point" for international trade. The potential change in tariff policy raises questions about its impact on Chinese exports and how mainland export enterprises might adapt.
As an independent customs territory, Hong Kong enjoys special tariff benefits from the EU, with average import duties below 10%. Furthermore, Hong Kong operates as a duty-free port, exempting both imports and exports from tariffs. This has allowed Hong Kong to serve as a vital "gateway" for Chinese exports, enabling goods to bypass tariff barriers by first passing through Hong Kong before reaching global markets.
In 2023, Hong Kong's total global trade in goods reached HKD 8.8224 trillion. Its major trade partners include mainland China, ASEAN, the EU, and the United States. Customs data revealed that in 2023, the total trade volume between Hong Kong and mainland China was RMB 2.88 trillion, while bilateral trade between Hong Kong and the EU amounted to HKD 510 billion.
Should the EU revoke Hong Kong's special tariff privileges, both sides are likely to incur economic losses. However, as the European Parliament is a subordinate body within the EU, its resolutions cannot unilaterally dictate EU policy. For this proposal to take effect, it must be submitted and approved at the EU level.
【Other Countries Follow Suit】
During his re-election campaign, former U.S. President Donald Trump proposed several aggressive "de-sinicization" measures, including revoking China's most-favored-nation status, imposing significant tariffs on Chinese goods to reduce the trade deficit, and promoting manufacturing repatriation to eliminate reliance on China's supply chain.
In tandem, Trump advocated for monetary policy adjustments to increase the dollar's attractiveness, countering the BRICS bloc's de-dollarization efforts. Several nations have already aligned with these proposals. For example:
- Mexico: Announced the complete removal of Chinese components from its supply chains.
- Malaysia: Declared it would reject Chinese products from transshipment through its territory.
Given Trump's track record of fulfilling campaign promises during his first term, these measures are widely expected to materialize if he secures a second term.
【Hong Kong SAR Government Responds】
The Hong Kong SAR government strongly condemned the EU Parliament's resolution, denouncing it as unfounded, malicious, and defamatory. The government expressed firm opposition and intense dissatisfaction, stating it would not be intimidated by such actions.
A spokesperson criticized unilateral sanctions against SAR officials based on baseless accusations, labeling them as unreasonable and unjust. The spokesperson further emphasized that Hong Kong remains resolute in upholding national security and will not yield to threats.
The Hong Kong SAR government highlighted that the bilateral trade between Hong Kong and the EU reached HKD 510 billion in 2023, and any actions undermining the mutually beneficial relationship would inevitably harm the EU and its businesses.
Hong Kong's Economic and Trade Office in Brussels will continue to promote Hong Kong's unique advantages, counter misinformation, and clarify misunderstandings where necessary. It aims to foster closer economic and trade relations with the EU, guided by principles of mutual benefit and win-win cooperation.
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