Breaking Through US Blockade: HK Backs Zhejiang Tech Firms But Details Are Scant

HK leader's trip to Chinese province signals strategy to overcome global trade turmoil

- Magdalene Fung

HONG KONG - Hong Kong leader John Lee's recent visit to mainland China's tech powerhouse Zhejiang province signaled his commitment to more closely collaborate with Chinese cities amid the global trade turbulence.

Mr Lee, who was accompanied by senior officials and business leaders, was there for four days in late April to find ways to work with the industry to circumvent disruptions from the ongoing tariff war between the United States and China.

But while the Hong Kong Chief Executive's trip was big on its symbolism, it has, for now, comparatively little to show by way of specifics on how it will help businesses diversify their supply chains.

Analysts say it is a first step, however, towards building a broader strategy for Hong Kong and mainland cities to work together to overcome the trade and business obstacles posed by the US, including the latest tariffs imposed by President Donald Trump.

During the trip, Hong Kong and Zhejiang agreed to set up a new mechanism by which Hong Kong will provide tailored supply chain services enabling mainland companies to bypass the US blockades.

Hong Kong is "well positioned to offer mainland enterprises new supply chain services and lead these businesses in exploring emerging markets, breaking through the US blockade", Mr Lee told a forum of some 600 government and business leaders in the Zhejiang port city of Ningbo on April 25.

"Utilizing Hong Kong's advantages as an international trade centre and multinational supply chain hub, along with Zhejiang's strengths in the digital economy" would help Chinese businesses diversify away from the US where investment risks have risen, he added.

Following the visit, the state-run China Daily published an opinion piece describing Mr Lee's move as a smart, "prudent and proactive response" to the US tariffs. The US has imposed as much as 145 per cent tariffs on goods from China, including Hong Kong.