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US rescinds Hong Kong's special trading status

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  1. #1

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    US rescinds Hong Kong's special trading status

    https://www.scmp.com/news/world/unit...y-act-and-ends

  2. #2

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    What is the practical implication?


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    Quote Originally Posted by pin:
    What is the practical implication?
    Most likely actions? Ending extradition treaty and implementing mandatory sanctions on Chinese and HK officials seen as undermining HK's autonomy. How effective? Hard to say at this point and one can certainly be skeptical about whether Beijing will even notice this. Its also probably nowhere as severe as attempting, for example, to undermine the peg ( rather unlikely scenario at this point). Although US can take other actions down the road that can impact HK more seriously.

    One thing might be a little more tricky though. The banks and firms caught between the US act and the NSL. They are between a rock and a hard place. If they comply with the US Act, they violate the NSL. If they refuse to comply with the US Act, they will face sanctions from the US.
    Last edited by Coolboy; 15-07-2020 at 08:19 AM.

  4. #4

    Maybe if Trump had not given Xi a free pass earlier when he was hoping to cut a great trade deal it would not have come to this. .


  5. #5

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    Quote Originally Posted by pin:
    What is the practical implication?
    No more duty evasion by "adding value" to stuff made in Dongguan and shipping it from HK. I would think that cross border freight and the container terminal will have less business. HK import and export of goods and services is 188% of GDP at the moment. For comparison the value is 47% in Germany.

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    If the US does treat HK re-exports as Mainland Chinese then probably a similar effect to the ASEAN / China Free trade deal where shipments that did go through HK moved to Shenzhen. They never came back even after HK was allowed to sign a free trade deal with ASEAN some time later.

    A lot of 'sales & marketing' (transhipping) offices will close along with them the tax and legal support needed to enable such activity.

    Last edited by East_coast; 15-07-2020 at 09:28 AM.

  7. #7

    Re-exports were supposed to have tariffs all along - so of course they will be tariffed now.

    latex likes this.

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    Quote Originally Posted by Elefant&Castle:
    Re-exports were supposed to have tariffs all along - so of course they will be tariffed now.
    Do manufacturers still use bonded warehouses in China (long time since I looked at this)?

  9. #9

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    Here's the full text ... a LOT of suspensions on paper - A lot of things suspended or to be suspended.

    A couple of random bits... not sure what the real life implications are.

    (b) amend the regulation at 8 CFR 212.4(i) to eliminate the preference for Hong Kong passport holders as compared to PRC passport holders;
    (Randomly wondered if this will affect Nancy Kissel - the milkshake lady)

    (f) give notice of intent to terminate the Agreement Between the Government of the United States of America and the Government of Hong Kong for the Transfer of Sentenced Persons (TIAS 99-418);

    https://www.whitehouse.gov/president...normalization/

  10. #10

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    Not sure this punishes China. I think it just punishes HK.

    Hoista, Mk.hk and blandy62 like this.

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