released October 18, 2020

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The government of the Hong Kong Special Administrative Region is considering countermeasures against the United States for the sanctions it imposed on the city, and will follow up if there's any need to do so, the city's commerce secretary said on Friday.
The Secretary for Commerce and Economic Development Edward Yau Tang-wah told China Daily that Hong Kong should stand up against such "unreasonable" and "unjust" measures.
However, the Hong Kong government will handle the situation in a prudent manner, he continued. "It may not be appropriate for me, at this point of time, to unveil the whole (countermeasure) plan because we are also seeing what other measures that the US is rolling out," Yau added.
"It's a matter not just for Hong Kong, but a matter for the entire multilateral trading system (of the world)," Yau said.
The US recently announced a series of sanctions on Hong Kong over the city's new National Security Law, including requiring the city's exports to the US to be labeled as "Made in China", and suspending or terminating three bilateral agreements with the city. The US Department of State announced on Wednesday the suspension or termination of Agreement for the Surrender of Fugitive Offenders, the Transfer of Sentenced Persons Agreement and the Agreement concerning Tax Exemptions from the Income Derived from the International Operation of Ship.
The major reason why Hong Kong is opposed to the unilateral measure by the US is that the right to use the product label "Made in Hong Kong" is not given by any trading partners on an individual basis, but conferred by the city's status as a separate customs territory, which is clearly stipulated in Hong Kong's Basic Law and recognized by the World Trade Organization, Yau said.
Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor on Tuesday revealed that the city will lodge a complaint to the WTO against the US' new requirement on the city's exports. Yau voiced support over the move, noting this will be a due process for the city to protect its own right, to fulfill its own duty as a law-abiding member, and to safeguard the WTO's rule-based system.
Such dispute between the US and Hong Kong might have implications for other WTO members, Yau said.
"Imagine some of the members being mistreated in the same way, what would they do?" he said.
"We certainly take exception to measures taken by the US against Hong Kong, because it is hurting Hong Kong, and it's contrary to the bilateral relations and the two interconnected economies," Yau said.
Yau said he understands the concerns of many foreign investors and chambers in Hong Kong, but he has confidence in investors deciding that the city still has a business-friendly environment.
Recalling last year's social unrest, Yau said some foreign companies and chambers came to him and expressed their concern. When the pandemic started early this year, the same group of people came to him again, saying they felt comfortable being in Hong Kong and that the city was a safer place than their home countries.
Instead of opting to leave the city, the same group of investors has come to him again recently to express their opinions, in the face of the growing hostility by the US, Yau said.
Yau added that containing the COVID-19 pandemic is the Hong Kong government's current priority. Only when the world is clear of the coronavirus can the city stand a chance of reviving its economy, he said.

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