US TECH INVESTMENT CURBS REJECTED

The Hong Kong Special Administrative Region Government today rejected a US measure restricting investment in China, including the Hong Kong SAR, on semiconductors and microelectronics, quantum information technologies, and artificial intelligence systems.

In a statement this evening, the Hong Kong SAR Government expressed strong objection to the US for intentionally targeting China and the Hong Kong SAR using various excuses out of political interests, causing damage to normal trade and investment activities as well as severely undermining the principles of a free market and economic order.

The US will ultimately reap the consequences, in particular the impact on the trade surplus it has realised in bilateral trade with Hong Kong throughout the years, the statement added.

It pointed out that in 2023, the US was Hong Kong's third-largest trading partner, with the total merchandise trade value amounting to HK$472.2 billion or US$60.3 billion.

Meanwhile, Hong Kong is the 27th largest trading partner of the US. As at end 2022, the US ranked sixth in inward direct investment (IDI) into Hong Kong, with an IDI stock of HK$351.4 billion, or US$45 billion.

The US was placed eighth in outward direct investment (ODI) from Hong Kong, with an ODI stock of HK$164.2 billion, or US$21 billion.

In addition, the US has realised a trade surplus of US$271.5 billion with Hong Kong during the past 10 years, the largest among its global trading partners.

These figures demonstrate the close economic interaction between Hong Kong and the US, as well as the vast business interests of US businesses in Hong Kong, the Hong Kong SAR Government noted.

It said US politicians once again have shown that they have acted out of their own political interests, causing damage to normal trade and investment, the free market and economic order.

The so-called restriction not only causes damage to normal business activities between Hong Kong and the US, but also affects the stability of the global supply chain.

Such a restriction, which would also harm US enterprises, as well as their business interests, and adversely impact bilateral economic activities, was politically driven and in nobody’s interest, it added.

The Hong Kong SAR Government reiterated that it would work with our country to safeguard our national interests and protect the interests of Hong Kong enterprises.

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