Fri, Mar 22, 2019 page10

• Lam warns of risk to HK from US-PRC dispute

  COLLATERAL DAMAGE: Deep differences between the two nations would continue to cause tensions, and would not be easy to resolve, Carrie Lam said

  • Bloomberg
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  Hong Kong Chief Executive Carrie Lam (林鄭月娥) cautioned that the territory continued to face the risk of collateral damage from the China-US trade dispute, saying the tensions were one reason why she has joined the ranks of those tracking US President Donald Trump’s tweets.

  “Last night, he was shouting to the media that things were good,” Lam said of Trump during an interview on the sidelines of the Bloomberg Invest Asia forum in Hong Kong. “I certainly want to see this trade discussion leading to some positive outcome.”

  “But I don’t think the problem will go away just like that. We will probably be seeing more tension in other areas,” she said.

  

  Hong Kong Chief Executive Carrie Lam speaks during a panel session at the Bloomberg Invest Asia forum in Hong Kong yesterday.

  Photo: Bloomberg

  “We know that trade issues aside, there are other deep-seated differences between China and the United States,” Lam said. “These will not be easy to resolve, especially in the short term.”

  The increased strategic jockeying between the US and China has also fueled questions in Washington about whether the territory should continue to enjoy a special trading status as a distinct entity from mainland China.

  US Consul General Kurt Tong said last month that signs of political encroachment by Beijing had raised cautionary flags for some US observers about the future of Hong Kong’s “high degree of autonomy.”

  Lam sought to reassure investors that Hong Kong still adhered to the rule of law and has an independent judiciary. She said she told a visiting US congressional delegation that Hong Kong remained an important source of US trade.

  “I said: ‘Nothing has changed, come on,’” Lam told Bloomberg Television. “What have we done to cause that sort of considerable worry to the extent of upsetting this very strong and close relationship between the United States and Hong Kong?”

  Lam defended a proposed extradition law, saying it would not undermine business freedom.

  Her government in January proposed allowing the transfer of fugitives to Taiwan, Macau, mainland China or any jurisdiction with which Hong Kong does not have an extradition agreement, sparking concerns from the EU, the local business community and some opposition politicians.

  “We don’t want Hong Kong to become a haven for fugitive offenders,” she said. “We are doing this with a very good purpose, and if there are concerns it is obligatory of the government to address those concerns.”

  In the interview, Lam outlined a list of policy priorities for her government — including new trade offices in Southeast Asia and tax breaks — meant to signal that Hong Kong remained an open and global financial hub.

  She said Hong Kong’s asset-management business could grow, and touted the territory’s potential as an offshore hub for trading the Chinese currency.

  Lam also touted the benefits of the “Greater Bay Area,” Chinese President Xi Jinping’s (習近平) plan to better integrate Hong Kong and Macau with China’s mainland.

  China’s long-awaited plan to create a high-tech megalopolis rivaling California’s Silicon Valley has generated optimism among Hong Kong’s business community, but thorny issues have so far been left out of the plan — including complex questions about which customs, tax and legal systems will predominate.

  “Work on the Greater Bay Area is progressing well and progressing fast,” Lam said.
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