HONG KONG: Hong Kong manufacturers who slashed...

HONG KONG: Hong Kong manufacturers who slashed costs in the 1980s by shifting factories to southern China might have to pack their bags again if Beijing loses its most-favored-nation trade status with the United States next month. Loss of the trade status would raise U.S. tariffs on Chinese goods to between 30% and 90%, compared to an average tariff of below 20%, a government survey said. The survey estimates that Hong Kong’s China-U.S. re-export trade plunge by as much as 44%--between $3.5 and $4.6 billion. Higher costs would force many manufacturers, especially in the toy industry--where 80% of production is in China--to move back to Hong Kong or to southeast Asia.