§ Sir Thomas ArnoldTo ask the Prime Minister if he will make a statement on the Government's position regarding the renewal by the United States Government of China's most favoured nation status.
§ The Prime MinisterRenewal by the United States Government of most favoured nation status for China is of great importance to Hong Kong. We hope that both the House of Representatives and the Senate will give their support to this measure.
Hong Kong's economy is now inextricably linked with that of China. More than two thirds of Chinese exports to the United States are routed through Hong Kong. It has been estimated that non-renewal of China's MFN could result in a loss of some 43,000 Hong Kong jobs, a drop of up to half in Hong Kong's current GDP growth and a loss of US$9 billion to 12 billion in trade. American commercial interest and investment in Hong Kong would also be adversely affected.
There have been some calls for renewal to be made subject to conditions, but this, too, would be bad for Hong Kong. The resulting uncertainty would be a major disincentive to investment in Hong Kong.