Gov't strongly objects to US tech investment ban

The government said it is rejecting the measure.

The Hong Kong Special Administrative Region (HKSAR) government said it rejected a US measure restricting investment in China, including the HKSAR, on semiconductors and microelectronics, quantum information technologies, and artificial intelligence systems.

The US Treasury Department recently finalised a new rule that bars US citizens and permanent residents as well as US-based firms from investing in China's tech sector including AI, semiconductors, and quantum computing.

In a statement, the HKSAR government expressed strong objection to the US for intentionally targeting China and the HKSAR 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 statement also noted that the US will reap the consequences, especially regarding the trade surplus it has achieved in its bilateral trade with Hong Kong over the years.

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

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

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

In addition, the US has realised a trade surplus of $2.1t (US$271.5b) with Hong Kong during the past 10 years, the largest among its global trading partners.

The HKSAR government noted that 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.

It said that 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 said 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 HKSAR government reiterated that it would work with the country to safeguard the national interests and protect the interests of Hong Kong enterprises.