China Is Buying Up Chips Before Hong Kong Route Shuts
- Data show re-exports of semiconductors surging this year
- U.S. sanctions could mean Hong Kong hub role lessens
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Chinese importers of computing chips are ramping up their purchases of equipment through Hong Kong, in the expectation that U.S. sanctions on the territory will soon make the trade much harder.
Re-exports of semiconductors through Hong Kong to the mainland jumped by 11% in the first half of the year from the same period in 2019, almost double the increase in total chip purchases, according to Bloomberg calculations using official data. Re-exports rose by 21% in June alone. The Hong Kong trade represents more than 38% of China’s total chip imports on average.