As the most significant revenue stream among the city’s merchandise exports, the electronics industry is of critical importance to Hong Kong. Fortunately, the global electronics sector is expected to resume growth in 2024, a development acknowledged by many of the participants in the Hong Kong Electronics Fair (Spring 2024) survey.

Consumers in China’s central region are more cautious and strategic than those in the mainland’s fiercely competitive first-tier markets. They tend to be more concerned with product quality than brand image and are highly price-sensitive, favouring items that are value-for-money. When making a purchase, these consumers’ main aim is to get satisfaction for themselves rather than to please others.

On 30 May 2024, the EU Council of Member State ministers adopted a new Directive promoting the repair of broken or defective goods, also known as the right-to-repair (or R2R) Directive. This legislation will, the Council has claimed in a press release, make it easier for consumers to seek repair instead of replacement of defective goods. Moreover, repair services will become more accessible, transparent and even attractive. The Council’s adoption of the Directive is the last step in the legislative decision-making process.

The Environmental Coalition on Standards (ECOS), an international non-governmental organisation (NGO) advocating for environmentally friendly standards, policies and legislation, announced the publication of their report earlier in May, on how Regulation (EU) 2023/1542 concerning batteries and waste batteries (the EUBR) could ensure circularity. ECOS’ report evaluates the EUBR’s effectiveness, with a particular focus on electric vehicle (EV) batteries in view of the decarbonisation of the transport sector.

The Federal Communications Commission on 23 May proposed new rules to ensure that wireless equipment authorisations “are not compromised by entities that have been found to pose national security concerns.” In practical terms, this regulatory action would permanently prohibit entities on the FCC’s Covered List, including various mainland Chinese telecom companies, from playing any role in the programme that authorises wireless devices to be marketed in or imported into the U.S.

The European Commission (“the Commission”) has launched an initiative to review the functioning of Regulation (EU) No 617/2013 (“the existing Regulation”), which addresses ecodesign requirements for computers. An identical Initiative has been opened concerning energy labelling requirements for computers. Since identical, they will be referred to as “the Initiative.” In sum, the Initiative seeks to add energy labelling requirements for computers in conjunction with revised ecodesign rules to increase energy efficiency and decrease waste from electrical and electronic equipment (“WEEE”). Hong Kong traders should note that feedback is sought, as part of the review process, from any interested party, with a deadline of 18 July 2024.

On 7 May 2024, official guidance interpreting the EU’s rules on a common charger was published in the Official Journal. The new guidance, provides non-binding interpretation of the Common Charger Directive 2022/2380 ( “the CCD”). The CCD, which entered into force on 28 December 2022, amended the EU’s Radio Equipment Directive (“the RED”) by imposing requirements for a single charger for a wide range of equipment. The guidance answers common questions regarding the CCD.

The U.S. Department of Defense, the General Services Administration and NASA are considering amending the Federal Acquisition Regulation to implement a law that prohibits U.S. executive agencies from procuring or obtaining certain products and services that include covered semiconductor products or services, including those from various mainland China entities, effective from 23 December 2027.

On 9 May 2024, Commission Regulation (EU) 2024/1103 entered into force, although most of its provisions will begin to apply from 1 July 2025 . The new Regulation lays out ecodesign requirements for local space heaters. It revises the existing ecodesign requirements for local space heaters that are found in Regulation (EU) 2015/1188. In accordance with Article 7 of that Regulation, the European Commission (“Commission”) reviewed it and analysed the technical, environmental and economic aspects of local space heaters as well as real-life end-user behaviour, leading to the adoption of new Regulation 2024/1103.

On 30 April 2024, for the first time since the entry into force of Regulation (EU) 2023/1542 concerning batteries and waste batteries (the EUBR), the European Commission (the Commission) has published on its Public Consultations and Feedback (‘Have your say’) website the draft text of a related Commission Delegated Regulation (CDR). The draft text supplements the EUBR by establishing the methodology for the calculation and verification of the carbon footprint of electric vehicle batteries and its accompanying Annex.