Trump’s Trade War Tariffs Send Firms to Hong Kong for a Little-Known Legal Loophole


This segment was pulled from The South China Morning Post. For the full article, please click here.

There were a few worried faces on the 23rd floor of a skyscraper in the business hub of Hong Kong’s Taikoo Place last Wednesday afternoon.

One of the most worried faces belonged to a supply chain manager for a Canadian technology company which manufactures the bulk of its products in China for export to North America.

A few years ago, in an effort to combat rising labour costs in the southern mainland province of Guangdong, his company shifted some of its production to Laos, only to find that the quality and support was nowhere near the level in South China.

“We wanted to move back to China,” he said. “Yes it is more expensive, but the support is much better.

“But then they started talking about tariffs.”