Last day before 'Made in China' label kicks in for HK-US exports

Blank labels covers the words "Made in Hong Kong" on cases of sauce alongside the words "Made in China" at the Koon Chun Sauce Factory in Hong Kong, China. The US government's policy of imports from Hong Kong to be labeled as "Made in China" is scheduled to take effect on Tuesday (Nov 10, 2020) as one result of the removal of Hong Kong's special trading status following the imposition of a National Security Law on the city. - Bloomberg

HONG KONG, Nov 9 (dpa): Monday will be the final day for companies whose goods are produced in Hong Kong to change labelling to "Made in China" as exporters prepare for a new rule ordered by US President Donald Trump to take force, local media reported.

The labelling rule will effectively end preferential treatment of Hong Kong by the United States in response to a National Security Law imposed by Beijing in the territory which critics say has eroded the rights and freedoms of Hong Kong citizens and killed off semi-autonomous operations.

Hong Kong's new national security law was gazetted into an annex of its Basic Law on June 30, the eve of the 23rd anniversary of the former British colony's handover to China.

The law targets secession, subversion, terrorism and collusion with foreign forces.

Trump had issued an executive order in June declaring Hong Kong no longer sufficiently autonomous from the mainland after Beijing launched a crackdown against democracy supporters.

From Tuesday, goods made in the city will be subject to the same trade war tariffs levied on mainland Chinese companies, which necessitates the new labelling, according to the South China Morning Post (SCMP).

The formerly favoured treatment toward Hong Kong's trade-exports industry was part of a 1992 Hong Kong policy act which allowed the US to continue to have separate trade deals with Hong Kong and mainland China after Hong Kong returned to Chinese control.

In May, finance chief Paul Chan said the new labelling would have little impact, as exports from Hong Kong to the US account for only 0.1 per cent of total exports. - dpa
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