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Alex Lo

Another day, another provocation from Washington. The House of Representatives has passed a bill that could close Hong Kong’s trade offices in the United States.
It’s part of an onslaught of bills from the US Congress targeting the city and Beijing. There are so many of them now it’s getting difficult to keep track of them, though most are just grandstanding from US politicians to boost their anti-China credentials.
In this case, though, it might not be such a bad thing. The question is, what would be the cost for Hong Kong, if any, should those US offices close?
And that can’t be answered unless we know whether they are actually value for money.

I admit it would be hard to determine how much actual economic benefit they have provided the city over the years. But we do know exactly how much they cost local taxpayers – a total of HK$601.5 million (US$77.1 million) a year, for all 14 such offices around the world. Of these, there are three Hong Kong trade missions in the US – New York, San Francisco and Washington.
So, if each such office averages out to roughly HK$43 million annually, those in the US still add up to a whopping sum of HK$129 million a year.
Let’s consider what some experts say about the US bill and its potential effects on the Hong Kong economy, and then we may have at least some idea about how effective – or not – those trade missions have been.
Executive Council member Jeffrey Lam Kin-fung, who also represents the commercial sector in the legislature, has played down the potential impact and said past sanctions against Hong Kong had only limited fallout, adding local firms that had been doing business in the US did not need help from the trade offices.
The Executive Council is sometimes described – not entirely accurately – as the cabinet of the executive branch of the Hong Kong government.

Kevin Tsui Ka-kin, an economist and director of economic research at local think tank Pagoda Institute, said the bill was “more symbolic” than anything else. “Closing down these offices won’t directly affect Hong Kong people investing in the US,” he said.
Lau Siu-kai, of the semi-official Chinese Association of Hong Kong and Macau Studies think tank, believes public Hong Kong organisations such as the Trade Development Council – with offices in Los Angeles, Chicago and New York – and InvestHK could take up some promotion and investment duties from the trade missions.
Does that mean there have long been some redundancies in the functions of those different groups? Who knows?
There are also Hong Kong trade offices in Brussels, London, Berlin, Toronto and Sydney. Will they follow the American example? Probably not, at least for now.

The US Senate probably will pass the bill. Should it become law, the next administration will make some determination or another about Hong Kong’s autonomy – whatever that means – to shut down those missions. And we can be sure there will be a fair and objective evaluation in the process, can’t we now?
But given the extreme distrust and paranoia of the entire American political class about all things Chinese, and that includes Hong Kong, the influence and functions of those trade offices have already been severely curtailed, even if they are allowed to continue.
Now, it’s true that traditionally, a brief stint in an overseas trade mission has been considered a cushy job and a promise of better things to come for a rising star within the Hong Kong civil service. So closure may have a negative impact on a few of those privileged individuals.
But for Hong Kong taxpayers? Let’s just say it won’t be the end of the world.


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Hong Kong

Possible closure of Hong Kong trade missions in US is no big deal

The US House of Representatives has passed a bill that could close Hong Kong’s trade offices in the United States. Photo: AFP

Hong Kong’s economic and trade office in San Francisco, in the US state of California. Photo: Handout

Lau Siu-kai, of the Chinese Association of Hong Kong and Macau Studies think tank, says he believes public Hong Kong organisations such as the Trade Development Council and InvestHK could take up some promotion and investment duties from the trade missions. Photo: Elson LI

The US Senate probably will pass the bill. Should it become law, the next administration will make a determination affecting the fate of Hong Kong’s US trade missions. Photo: Shutterstock

Hong Kong trade offices, academic exchange targeted in bills passed by US House

The US House of Representatives passed a bill on Tuesday that could result in the closing of Hong Kong’s three trade missions in the country.  Photo: Shutterstock

An undated photo of the Hong Kong Economic and Trade Office (HKETO) in Washington. Photo: Handout

US congressman Bennie Thompson, a Mississippi Democrat, has voiced concern about the bill that cuts Department of Homeland Security funding for schools partnering with Chinese institutions. Photo: Getty Images via AFP)

Republican presidential nominee and former US president Donald Trump championed the first China Initiative, a now-defunct US Justice Department programme focused on tackling economic espionage. Photo: Reuters

What are Hong Kong’s trade offices and why are they in cross hairs of US bill?

The Hong Kong Economic and Trade Office in San Francisco, one of three that could close if a bill is signed into law. Photo: Handout

The bill must also clear the full Senate, Congress’ upper chamber, before it can be sent to President Joe Biden’s desk to be signed into law. Photo: AP

Drop bill closing Hong Kong trade offices or face countermeasures, Beijing warns US

The Hong Kong Economic and Trade Office in Washington is among those facing closure if the bill passes. Photo: Handout

The US Senate will still need to clear the bill before the president can sign it into law. Photo: AFP

Opinion

Hong Kong Opinion

The annual high cost of running these offices with diminishing value for money in a hostile America could be a blessing in disguise


The annual high cost of running these offices with diminishing value for money in a hostile America could be a blessing in disguise.


US-China relations

Executive Council of Hong Kong

Hong Kong politics

Macau

United States

Trade

US Politics

Expresses the views, ideas and conclusions of the author. (Eg. Enough of Crazy Rich Asians, think of crazy poor Hongkongers.)


Column

My Take

My Take | Possible closure of Hong Kong trade missions in US is no big deal

The annual high cost of running these offices with diminishing value for money in a hostile America could be a blessing in disguise