India exports gem and jewelry to the USA. In 2018-19 India exported gem and jewelry to the USA worth $10.48 billion.US shares a larger pie for the gems and jewelry consumption from India. HK & China is also an important destination for India’s Gem & Jewellery Exports with nearly 27% of exports directed to that market. Many Indian Diamond and Jewellery companies have their offices in HK. The US move on higher duty imposition likely to impact India’s gem & jewelry businesses too. However, the ongoing US-China trade war, wherein U.S. law effectively ending Hong Kong’s preferential economic treaty anticipated creating an opportunity for the Indian gem & jewelry sector.
According to Colin Shah, GJEPC, Chairman, India has the natural benefit of ready infrastructure to cater to the global demand. It has the potential to become a trading hub due to the ready availability of raw material, manpower, and skillsets.
US President Trump Upping the Ante on China over its Handling of the Pandemic Outbreak
U.S. President Donald Trump accusing China of not being transparent about the pandemic. Donald Trump alleging China, not alarming the world about the upcoming deadly virus pandemic affecting US-China trade as well.
China’s National Security Law in Hong Kong.
The United States of America is all set to impose a 7.5% duty. Henceforth, the goods exported from Hong Kong will now be considered as goods made in China for duty purposes.
‘US-HK Policy Act’ of 1992
The US-HK Policy Act effectively sought to recognize Hong Kong’s status for several purposes under US law, including trade. Also, its role as an international financial center. However, the policy allows the US President to suspend or change Hong Kong’s status under US laws through an Executive Order.