Hong Kong Financial Secretary Paul Chan announced on Saturday that the territory will not respond with countermeasures to the United States’ recent imposition of new tariffs on Chinese imports. Speaking at a seminar, Chan emphasized Hong Kong’s commitment to open and rules-based trade, signaling a desire to avoid further escalation in global trade tensions.

“The government remains firmly committed to promoting free trade and supporting a transparent, rules-based trading system,” Chan stated. While he acknowledged opposition to the US’s decision to implement a 34% tariff on Chinese goods, he noted that Hong Kong would not mirror such measures or adopt retaliatory actions.

Chan’s comments follow the latest chapter in the ongoing trade conflict between Washington and Beijing. The United States recently introduced the 34% tariff targeting Chinese imports, to which China responded by imposing a similar tariff on American products. Despite the intensifying situation, Hong Kong’s leadership has chosen a more neutral stance, highlighting its distinctive economic approach and global financial standing.

“In an interconnected global economy, maintaining stability and open markets is essential,” Chan added. He emphasized that Hong Kong’s role as an international financial hub relies on predictable policies and resistance to protectionist pressures.

Analysts view Hong Kong’s measured response as a strategic effort to differentiate its economic policy from those of mainland China and the United States. By avoiding retaliatory tariffs, the city aims to preserve its trade relationships and avoid additional strain on its economy, which has faced challenges in recent years due to geopolitical pressures and shifting global markets.

Chan concluded that while Hong Kong opposes Washington’s latest trade move, the best path forward lies in upholding international norms and encouraging dialogue over confrontation. His remarks underscore the city’s broader commitment to free-market principles amid rising economic nationalism worldwide.