(To watch the full media session with sign language interpretation, click here.)

Chief Executive John Lee today outlined a seven-pronged strategy that aims to meet any challenges in the face of the US’ move to impose a cumulative 54% tariff on products from Hong Kong.

Meeting the media ahead of this morning’s Executive Council meeting, Mr Lee expressed his concerns over the magnitude of the US tariff measures.

“Last week the US announced the imposition of so-called reciprocal tariff on trading partners around the world, including an additional 34% tariff on Hong Kong products.

“Together with the 20% tariff announced earlier, the total tariff imposed on Hong Kong products is up to 54%.

“The US no longer adheres to free trade, arbitrarily undermining the internationally established rules of world trade.

“Its ruthless behaviour damages global and multilateral trade. The reckless imposition of tariff affects many countries and regions around the world with huge tax rate increases covering a wide range of goods, disrupting the world’s economic and trade order.”

In response, the Chief Executive said that the Government will strengthen its strategy in seven areas.

“First, we shall fully seize the opportunities in our country, China’s development, and actively integrate into the national development.”

He also emphasised that Hong Kong will take full advantage of the Mainland & Hong Kong Closer Economic Partnership Arrangement to attract more foreign companies to set up operations in the city to capitalise on the benefits of “one country, two systems”.

“Second, we shall strengthen international exchanges and deepen regional ties and co-operation. We shall sign more free trade agreements with countries and economies.”

To this end, Mr Lee pointed out that the Government is currently negotiating investment agreements with Saudi Arabia, Bangladesh, Egypt and Peru, and will continue to push for Hong Kong’s early accession to the Regional Comprehensive Economic Partnership.

“Third, Hong Kong will accelerate industrial transformation by developing a high value-added, innovation-driven economic model. We will expedite the establishment of a high value-added supply chain service hub and promote the growth of a headquarters economy.

“Fourth, we will intensify efforts to develop technological innovation, attract top-tier talent and further strengthen Hong Kong’s competitiveness.

“Fifth, we will vigorously advance international financial co-operation to attract investments and capital.

“Sixth, we will seize the world’s major trend of geographical diversification, proactively attracting foreign companies and capitals to establish in Hong Kong because Hong Kong can provide security and stability to investors and enterprises under ‘one country, two systems’.

“Seventh, we will continue to provide various support to help Hong Kong enterprises to cope with the impact of tariff and external challenges.”