USPS Suspends Inbound Shipments from China and Hong Kong as Panama Mulls Cutting Ties with Hong Kong Firm
Is Hong Kong the New Geopolitical Battleground in the US-China Rivalry?
Caught between the scissors, Hong Kong has become the new geopolitical battlefield as tensions escalate between the US and China. Recent developments suggest that Hong Kong’s role as a financial and strategic hub is under increasing scrutiny amid the deepening rivalry, with significant consequences already felt in global trade, key infrastructure, and financial markets.
On February 4, 2025, the U.S. Postal Service (USPS) announced the suspension of inbound international parcels from China and Hong Kong. The suspension, effective immediately, does not affect other courier services like UPS.
In a related development, the Panamanian government is considering ending a contract with Hutchison Ports PPC, a subsidiary of Hong Kong’s CK Hutchison Holdings. Hutchison Ports currently operates two of the five ports near the Panama Canal. This follows Secretary Rubio’s visit as U.S. concerns grow over China’s use of Hong Kong as a geostrategic tool for financial manipulation (particularly its role in internationalizing the Renminbi (RMB)), in controlling the global economy, and evading sanctions. The U.S. argues that China’s imposition of the National Security Law on Hong Kong in 2020 has severely diminished its financial autonomy and rendered the territory a global security threat.
The crucial questions remain: What’s next for Hong Kong businesses and their strategic assets as the tides continue to turn? In light of China’s expected retaliation, what should American or U.S.-affiliated businesses in Hong Kong or China prepare for?