Hong Kong has written a letter to U.S. trade representative Robert Lighthizer, formally asking Washington to withdraw its decision to require goods produced in the city to bear a “made in China” label.

The new rule is unreasonable and infringes the World Trade Organization’s regulations, said Hong Kong commerce minister Edward Yau after his meeting on Wednesday with the acting U.S. consul general, Paul Horowitz. Yau said he had requested Horowitz hand the letter to Lighthizer.

The U.S.'s new requirement on origin marking “goes contrary to the WTO regulations,” Yau said.

“It also infringes Hong Kong’s right as a separate customs territory and our rights under the WTO.”

The export-label requirement was announced after Beijing enacted a controversial national security law in the semi-autonomous city. Since the law was implemented, the U.S. has declared that Hong Kong was no longer autonomous enough to enjoy special trade privileges that were not extended to China.

The new rule was originally planned to come into force this month but its official implementation has now been delayed to November.

The new rule would have an impact on certain industries, and both Hong Kong exporters and U.S. importers were looking for solutions, said Yau.

Hong Kong goods enjoy excellent international reputations, said Daniel Yip, chairperson of the Federation of Hong Kong Industries, adding that the U.S. rule would negatively affect local brands.

He called for Washington to withdraw the decision and to maintain a mutually beneficial trade relationship with Hong Kong.

An earlier study by the Hong Kong Brand Development Council, a body under the FHKI, found that companies would have to change their product packages in a short period of time once the new regulation was implemented. Customs clearance would also become more complicated. However, the overall impact on industries was small, according to the study.

Dennis Ng, president of the Chinese Manufacturers' Association of Hong Kong, said the city should “defend its right” to properly label its products. The association fully supported the government in its complaint to Washington, he said.

Some companies, however, are already shifting their business strategies for when the regulation is implemented.

Quinn Lai, the founder of local watch company Eoniq, said U.S. customs had told him that he would not be able to continue labeling his products “made in Hong Kong.” As a result, he stopped his plan of entering the U.S. wholesale market and would focus on other countries instead.

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