U.S.-China Agreement Buoys Hong Kong : * Trade: Hopes rise for more business after the settlement of a longstanding dispute over intellectual property.

HONG KONG — Trade officials and business leaders in Hong Kong expressed optimism Friday over resolving other trade disputes between the United States and China following an agreement between both countries to protect American intellectual property rights.

Brian Chau, Hong Kong’s secretary for trade and industry, said the news of the agreement has helped ease the mood of uncertainty hanging over Hong Kong trade and paves the way for a brighter future.

“We hope that this agreement will create a better atmosphere in the U.S. Administration this year in which to deal with other questions affecting China and Hong Kong trading,” Chau said.

American and Chinese negotiators are still discussing U.S. demands that China lift trade barriers. The U.S. Congress has also said it will try this year to tie China’s most-favored-nation (MFN) trade status to human rights.

“The bulk of Chinese exports to the U.S. are re-exported through Hong Kong. . . . If China lost its MFN status, it would have much more of an impact on Hong Kong,” Chau said.

The resolution of the Special 301 Intellectual Property Rights negotiations between the United States and China on Thursday eliminated the threat of tariffs and averted a trade war, in which Hong Kong would have been in the cross-fire.

In response to the agreement, the Hong Kong stock market’s Hang Seng index soared 42.75 points Friday, or 1%, to a record 4,454.89.

But loss of China’s MFN status would cover the whole Sino-U.S. trade spectrum. For China, the privilege is worth millions of dollars; for the United States, it keeps prices of many consumer goods low, and for Hong Kong, it ensures continued re-export trade between China and the United States.

The Federation of Hong Kong Industry and the American Chamber of Commerce in Hong Kong plan to lobby U.S. leaders in the next couple of months in support of renewing China’s MFN status without conditions.

“The American Chamber in Hong Kong will strongly support that position and will initiate our activities both here and in Washington to ensure this year’s MFN will be renewed without conditions,” said Gareth Chang, chamber president.

Chang, who is also president of U.S. aircraft maker McDonnell Douglas’ Asia-Pacific operation, said at least half of the estimated 900 American companies in Hong Kong have a business relationship with China.

The copyright agreement “is an important step in the mutually beneficial long-term relationship between the U.S. and China,” said Chang. Chang said he is further encouraged that President Bush will hold a bilateral meeting with Chinese Premier Li Peng at the United Nations on Jan. 31.

“I think the significance of this meeting is that we haven’t had a senior-level Sino-American meeting since China’s 1989 crackdown. . . . I’m optimistic that both countries are looking for ways to improve their relationship politically and economically,” he said.