Eric Chan: Hong Kong can leverages seven strategies to counter US tariff measures
Amid the global economic challenges posed by the US-China trade war initiated by US President Donald Trump, HK is turning adversity into opportunity with its unique advantages. Speaking at the press event yesterday (April 26), Chief Secretary for Administration Chan Kwok-ki emphasized that countries worldwide are reassessing the risks of investing in US markets and assets while accelerating discussions with other trade partners. HK is actively responding to these shifts, maintaining vigilance, and aiming to attract foreign enterprises and capital to the city, capitalizing on the global trend of risk diversification.
Chan, along with Acting Financial Secretary Wong Wai-lun, Secretary for Commerce and Economic Development Algernon Yau, and Secretary for Financial Services and the Treasury Christopher Hui, shared insights during an interview at the HKSAR Government headquarters. Chan criticized the US's "reciprocal tariffs," calling them illogical and a severe disruption to the multilateral trade mechanism and global supply chains built over decades. He quoted President Xi Jinping's remarks during a meeting with Spanish Prime Minister Pedro Sánchez: "There is no winner in a tariff war, and going against the world will only result in self-isolation." Chan noted that countries are responding to the US's extreme measures by reassessing their reliance on American markets and assets, while expediting trade negotiations with other partners.
HK, as an international free port, faces pressure on its re-export and logistics sectors. However, Chan highlighted that US tariffs present both risks and opportunities. With global capital reallocating investments beyond the US, HK is positioned to seize the moment and attract funds by leveraging the trend of countries diversifying their risks.
Leveraging HK's strengths in asset protection to support businesses
In response to the arbitrary imposition of tariffs by the US, Chan outlined seven key strategies by which the HKSAR Government plans to mitigate risks. In addition to attracting capital to HK, these measures include further accelerating integration into the country's national development strategy; strengthening international engagement and cooperation to expand HK's economic and trade network by signing more free trade agreements with other countries and economies; accelerating industrial upgrading and transformation to develop high-value-added and innovative economic models, as well as enhancing digital trade; increasing investment in technological innovation to attract high-caliber talent and bring in more key enterprises to boost HK's competitiveness; vigorously promoting international financial cooperation to consolidate HK's position as a global financial center.
Chan emphasized that HK possesses an irreplaceable advantage as a safe haven for asset protection and will continue to support industries and assist businesses in addressing challenges.
Expanding into ASEAN, Middle East, and exploring North Africa
To harness opportunities from the Belt and Road Initiative, the HKSAR Government, alongside local business and professional sectors, will deepen engagement with ASEAN and Middle Eastern markets while exploring potential in Central Asia, South Asia, and North Africa.
Algernon Yau added that InvestHK plans to visit Medellín in Colombia, Lima in Peru, and Buenos Aires in Argentina later this year to co-host promotional events with local chambers of commerce as part of efforts to enhance investment promotion in Latin America.
On developing the virtual asset market, Christopher Hui mentioned that the government will regulate stablecoin issuers and custodians while consulting the market on measures for regulating over-the-counter virtual asset transactions.
Boosting HK's event industry and cultural appeal
With a series of high-profile events recently launched, including the opening of the Kai Tak Sports Park, Wong Wai-lun expressed optimism about the city's future in hosting world-class events. He highlighted HK's ability to blend Eastern and Western cultures, focusing on event quality rather than quantity.
Wong revealed that a new state-of-the-art performance venue near the AsiaWorld-Expo at the airport will be completed in about three years, with a capacity to host 20,000 attendees. Referring to the success of the Coldplay concert, he noted that HK has a large audience base and the ability to attract high-spending tourists from other regions.
Under the "multi-destination" development strategy, HK is strengthening ties with other cities in the Greater Bay Area, combining their respective strengths to make unique contributions to national development.
(Source: Wen Wei Po)
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