HK hope as China cuts import tariffs

Staff reporter and Bloomberg

China will lower import tariffs on 1,020 products for next year, including various medicines.

And some experts believe Hong Kong's export figures might improve in the wake of that move.

On the list for action on January 1 are raw materials for medicines that are said to work against cancer, the coronavirus and also painkillers in addition to foodstuffs and some home appliances.

The tariffs on materials and products used in advanced manufacturing will also be lowered or be removed as well.

The announcement came as data from Hong Kong's Census and Statistics Department showed SAR exports and imports slumping more than 20 percent in November from the corresponding months in 2021.

Exports plummeted 24.1 percent to HK$360 billion for November - the seventh consecutive month - while imports were down 20.3 percent.

The falloff last month widened from 10.4 percent in October, making it the worst decline since 1954.

The decline in shipments to the mainland was 29.7 percent - far worse than October's drop, which was 12.9 percent.

Meanwhile, the Hong Kong Export Credit Insurance Corp has extended enhanced measures to June 30 next year to support local exporters.

Under the measures the corporation increases the credit limit of each buyer by 100 percent, or up to the amount applied for by a policyholders, whichever is smaller, subject to a cap of HK$100 million.