HK Economy- Highlight
12 Jan 2018
US President Trump signed the biggest overhaul of the US tax system in more than 30 years into law on 22 December 2017. It’s estimated that the newly-enacted Tax Cuts and Jobs Act will give the bulk of US households a tax cut for the next decade and deliver to most US corporations a lower after-tax cost of capital. However, it is being criticised for adding US$1.5tn to the current US national debt of US$20tn in the coming 10-year budget window.
Hong Kong and the Chinese mainland inked two new agreements on 28 June 2017, namely the Investment Agreement and the Economic Technical Cooperation Agreement (Ecotech Agreement) to progressively enrich the CEPA content over the years. The Ecotech Agreement does not cover market access commitments or substantive liberalisation measures, but set forth the direction for closer future co-operation between Hong Kong and the Chinese mainland.
The ability of the UK to weather the impending Brexit economic storm will not only determine the country’s economic future, but also the future prospects for HK-EU co-operation. Uncertainty and opportunity abound in the run-up to Brexit. Hong Kong, with its long-standing links with the UK, is in a prime position to help British companies develop a new free-trade based future and forge partnerships with investors and businesses in Asia.