How the US-China Trade War Could Disrupt Technology Supply Chains for Hong Kong Businesses

The trade war between the United States and China continues to intensify, and while Hong Kong remains a separate customs territory, the city sits uncomfortably close to the heart of the geopolitical and economic fallout. For businesses here—particularly those reliant on US technology brands such as Cisco, Dell, HP, and Apple—the implications for procurement, pricing, and long-term support cannot be ignored.

Why Hong Kong Isn’t Immune to the trade war

Although Hong Kong operates under a different economic and legal system than mainland China, many US trade policies now take a broader view. In recent years, the US has tightened export controls on high-tech equipment and restricted trade with entities linked to China—even when operating from Hong Kong. This creates a grey area where uncertainty, rather than direct regulation, poses the greatest threat.

The Cisco Conundrum: Made in China, Branded in the US

Many US-branded products, including Cisco’s network switches and routers, are manufactured in China, even if their intellectual property and customer support are US-based. The same applies to servers from Dell, PCs from HP, and even some components used in Apple’s supply chain.

So, Does The Trade War Actually Affect Supply to Hong Kong?

In practice, yes—but not always directly. Here’s why:

• Tariff Impact Is Upstream
  Products may be assembled in China, but if they’re shipped to the US for distribution and then exported to Hong Kong, they can still carry embedded costs from US-China tariffs. Even when sourcing from a Hong Kong distributor, that cost might be passed downstream.

• Export Restrictions May Still Apply
  If the hardware includes sensitive components (like encryption, telecoms infrastructure, or certain processors), it may be subject to US export controls under the EAR (Export Administration Regulations), even if physically located in Asia.

• Increased Scrutiny Slows Supply Chains
  Regulatory and compliance checks—especially around the origin of components and end-use declarations—can delay shipments or make vendors more cautious about who they sell to.

• Vendor Policy Shifts Create Indirect Pressure
  US technology companies are increasingly adapting their global supply chain strategies to reduce exposure to China during the trade war. This could mean supply being rerouted, constrained, or even phased out for certain markets, depending on risk appetite.

What PTS Is Seeing Across Clients

From our position supporting clients across finance, professional services, and retail sectors in Hong Kong, we’re noticing:

• Price volatility and longer lead times for enterprise-grade Cisco and Dell equipment
• Requests from US-headquartered clients for assurance that hardware deployed in Hong Kong doesn’t pose a compliance or political risk
• Vendor-driven encouragement to shift towards cloud-based solutions, especially for network security and collaboration tools

Strategic Recommendations for Hong Kong Business

1. Review Your Vendor Dependencies

If your infrastructure is heavily reliant on one or two US brands, now is the time to assess alternatives. Not necessarily to switch—but to build optionality into your future roadmap.

2. Clarify Origin and Routing in Procurement

When ordering new equipment, verify the shipping route and final assembly location. In some cases, ordering directly from regional hubs in Singapore or Japan may avoid entanglements with US export rules.

3. Engage Local Distributors Early

Hong Kong-based resellers and authorised distributors often have more insight into potential bottlenecks or regulatory flags. We recommend early engagement for large projects or critical refresh cycles.

4. Plan for Stock Buffering

If you have Cisco switches, Dell servers, or HP desktops on your critical path, consider maintaining a rolling buffer of spares or replacements—particularly for models with long global lead times.

5. Explore China-Agnostic Infrastructure

Not all infrastructure needs to pass through the US-China corridor. Brands like Lenovo (with manufacturing in multiple locations), Ubiquiti, Fortinet, and Synology are worth considering for less politically sensitive deployments.

Cloud and Software Aren’t Entirely Immune Either

Even cloud services can be affected by the trade war. US-origin SaaS and cloud providers may face pressure to restrict access, enforce regional compliance restrictions, or demand more documentation for Hong Kong users. For example, services like Microsoft Azure or AWS may segment account access or impose additional contractual checks for certain categories of use or data.

The Trade War, In Conclusion

The trade war is less about hard borders and more about risk perception, compliance cost, and regulatory friction. For Hong Kong businesses, that means planning for unpredictability rather than assuming stability.

At PTS, we support clients across sectors with tailored IT procurement strategies, vendor risk assessments, and agile infrastructure planning. Whether you’re refreshing your network, evaluating cloud options, or preparing for office relocation, our team ensures you’re not caught out by shifting global policies.

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Need advice on navigating supply chain risk for US-branded IT hardware in Hong Kong?
Get in touch with us today at hello@ptsconsulting.com.hk or book a consultation via https://www.ptsconsulting.com.hk/contact-us/