Hong Kong firms urged to find alternatives due to US tariffs, software controls
In anticipation of export curbs on critical software, technology experts warn of a ‘painful’ transition for firms reliant on US-made systems
Hong Kong businesses have braced themselves for additional US tariffs, but experts are urging companies to develop alternative strategies due to proposed export controls on American-made critical software, warning of a “painful” adjustment.
Industry figures told the Post on Saturday that US President Donald Trump’s threat to impose an additional 100 per cent tariff on Chinese goods from November 1 would not significantly impact Hong Kong businesses, which were used to uncertainties from his administration.
The announcement followed China’s plans on Thursday to limit export controls on rare earths – raw materials that are essential for producing hi-tech goods such as electric vehicles, smartphones and spacecraft.
Allen Shi Lop-tak, honorary president of the Chinese Manufacturers’ Association, said that with the rare earth restrictions, China had already anticipated countermeasures from Trump.
“Trump might add another 100 or 200 per cent but it does not really have much effect any more,” he said, adding that the move was merely “ideological”.
“For manufacturers, those who needed to move production have already relocated to Southeast Asian countries.”