Secretary for Commerce and Economic Development Edward Yau Tang-wah elaborates on initiatives relating to the Commerce and Economic Development Bureau in the Chief Executive's 2018 Policy Address at a press conference in Hong Kong, Oct 11, 2018. (PHOTO/CEDB.GOV.HK)

Hong Kong Special Administrative Region (HKSAR) Commerce Secretary Edward Yau Tang-wah told CNBC on Monday that rising US-China tensions are “unhelpful” and that he will take up with the US government the matter of Hong Kong goods for export to the United States to be labeled made in China.

Goods made in the HKSAR for export to the United States will need to be labeled as made in China after Sept 25, according to a US government notice posted last week

Goods made in the HKSAR for export to the United States will need to be labeled as made in China after Sept 25, according to a US government notice posted last week.

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When asked about the development by CNBC, Yau referred to World Trade Organization rules which state that the HKSAR is entitled to use its own labeling for its exports.

He also said that the HKSAR’s growth slowed to an “unprecedented” nine percent decline in the second quarter.

Yau expressed concerns over escalating US-China tensions, saying that they were distracting from fighting the coronavirus pandemic.

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"As we are fighting the pandemic, I think the last thing one would want is a further distraction that would disturb or disrupt the trade," he told CNBC.

Tensions between Washington and Beijing have been rising over the handling of the coronavirus outbreak, trade war tariffs, the enactment of the National Security Law in the HKSAR and the subsequent US decision to end the city’s special status under United States law.

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