Hong Kong can shift the source of equipment and technologies used for law enforcement to the Chinese mainland if the European Union (EU) implements a curb on exports of those products, experts said after media reports saying the bloc is about to impose technology export limits to Hong Kong.
While the firearms, ammunition and communication equipment currently being used by Hong Kong law enforcement are mainly from the EU, the city could shift the source of the products to the Chinese mainland, an expert familiar with the matter told the Global Times on Saturday, noting Hong Kong police have already used tear gas and bullet-proof vests that are made in China.
On Friday, Reuters cited an EU draft document – the bloc’s first concrete reaction to the national security law for Hong Kong – backed by EU member-country envoys, saying the bloc will be “further scrutinizing and limiting exports of specific sensitive equipment and technologies for end-use in Hong Kong.” The report said the export controls are expected to take effect on Tuesday.
However, experts noted that there will be limited impact on Hong Kong as local police have been using equipment made from the Chinese mainland since last year.
“Such products used to come from the US, UK, France and Germany mainly, but Hong Kong is able to find substitutes from the Chinese mainland, other countries and regions if the EU implements the limits,” Liang Haiming, a Hong Kong-based economist, told the Global Times on Saturday.
The EU’s latest measure is a response to US’ requests, but the EU doesn’t want to offend China just for pleasing the US, so the bloc only limited products that are not commonly used to avoid China’s countermeasures, Liang noted.
Hong Kong is a major export market for EU products which enter the city with no tariffs, according to Hong Kong’s Trade and Industry Department. In 2018, Hong Kong’s major imports from the EU were pearls and precious stones, non-electric engines, travel goods and handbags, silver and platinum, jewelry and aircraft and associated equipment.
In addition, the city is a vital entrepot for trade between the Chinese mainland and the EU. In 2018, more than 10 billion euros ($11.66 billion) of the mainland’s imports from the EU came through Hong Kong, said the department.
To aid its economy amid the COVID-19 pandemic, the EU will continue to cooperate with China, its second largest trade partner, according to Liang.
“The EU may want to consider whether China will continue to allow the import of luxury products like Hermes, LV, Swiss watches and wine in future. Are European countries willing to risk an all-round confrontation with China, just to help with the reelection of the US President Donald Trump?” Liang said.
Last year, the trade value between Hong Kong Special Administrative Regions and the EU reached HK$661.92 billion ($85.39 billion), accounting for 7.9 percent of Hong Kong’s total trade value, according to Hong Kong’s Trade and Industry Department. Exports from the bloc to Hong Kong totaled HK$304,284 million, accounting for 6.9 percent of the city’s total imports.
Photo taken on July 16, 2020 shows the Avenue of Stars in Tsim Sha Tsui of south China’s Hong Kong. Photo: Xinhua
