After months of intensifying fears over how the US trade war will affect Hong Kong and the rest of the country, local businesses finally received some good news this week. Read on for that story and details of others that led City desk coverage.

In today’s edition:

• Trade war truce

   

• Deeper Mideast ties

   

• Security law legislation

   

• UK settlement questions

Trade war truce

Hong Kong companies cautiously welcomed a 90-day pause in the US-China trade war, with exporters expected to front-load their shipments to America during the period of tariff reductions. Despite the announcement of the truce, Chief Executive John Lee vowed to press ahead with filing a complaint to the World Trade Organization over the US' imposition of "reciprocal" tariffs on Hong Kong, which is a free port. The government said the easing of trade tensions would benefit the city's exports as it announced the local economy grew by 3.1 per cent in the first quarter against a year ago, while warning uncertainties over the outlook for growth remained.

Deeper Mideast ties

Lee also ramped up efforts to diversify business opportunities for the city by leading a delegation to Qatar and Kuwait. We analysed how the latest trip yielded bigger results than his first official visit to the Middle East did in 2023.

Security law legislation

On the legal front, the government enacted subsidiary legislation for the domestic national security law. The step was aimed at better supporting the Beijing office overseeing the enforcement of the law. We examined what prompted the move, which came more than a year after the law was passed. 

UK settlement questions

Meanwhile, the bespoke visa pathway the UK offers to Hongkongers after Beijing imposed its national security law on the city in 2020 was back in the spotlight as Britain said it would cut net migration levels. The announcement has fuelled concerns over how the British National (Overseas) settlement scheme could be affected. 

Follow our trade war coverage and other highlights of the week at SCMP.com. Have a good weekend!
 

Politics

• Explainer | How will new subsidiary laws that bolster national security affect Hongkongers?

   

• Ordinary Hongkongers okay to take photos near ‘prohibited places’: authorities

   

• Beijing cautions Hong Kong’s CK Hutchison to ‘act with prudence’ over port deal

   

• Hong Kong vows enforcement of UN Iran sanctions, hits out at US measures

   

• Xia Baolong’s 4 ‘hopes’ viewed as ‘wake-up call’ for Hong Kong, Macau firms