Hong Kong needs ‘forward-looking’ plans amid changes in industrial chains: John Lee

Hong Kong should proactively plan and implement forward-looking strategies amid rapid changes in global industrial chains and the rapid development of technology and artificial intelligence, the city’s leader has said at an economic forum.

Speaking at the Hongqiao International Economic Forum in Shanghai, Chief Executive John Lee Ka-chiu said on Thursday that the government’s GoGlobal task force had helped more than 360 mainland Chinese firms establish or expand their businesses in Hong Kong since it was established last year, with about a third of them setting up regional or international headquarters.

“Faced with the severe, rapidly changing restructuring of the global industrial chain, and the high-speed development of technology and artificial intelligence, Hong Kong must proactively plan and implement forward-looking strategic layouts,” Lee said at the forum, which is taking place alongside the ninth China International Import Expo in Shanghai.

The national 15th five-year plan, supported by Hong Kong’s first five-year blueprint, aimed to strengthen the city’s status as an international financial, shipping and trade centre, while supporting its development into a global innovation and technology hub and a centre for top talent, he said.

“Hong Kong will continue to strengthen its role as the world’s largest offshore renminbi business hub, further enhance the capacity of the offshore renminbi market to support the real economy, and comprehensively elevate support in the areas of investment, financing and cross-border businesses,” Lee added.

“Hong Kong’s economic and trade network is not just a one-way channel but a multidirectional hub,” he said, noting that the city had signed free-trade agreements with 21 economies and investment agreements with 34 economies.

Lee pointed out that Hong Kong became the world’s largest cross-border wealth management centre this year, and the government was also accelerating the development of the low-altitude economy and the Northern Metropolis project.

Speaking at the same event, Trade Development Council Chairman Frederick Ma Si-hang said the organisation was leading a delegation of more than 70 Hong Kong enterprises at the trade fair this year, which had attracted a record-high number of exhibitors.

“We will on the one hand assist Hong Kong enterprises in seizing the opportunities of the country’s 15th five-year plan, and at the same time support mainland enterprises in making good use of Hong Kong’s professional services and international business platforms to open up new markets and enhance their international competitiveness,” he said.

Ma added that a new zone dedicated to Hong Kong brands had been set up at the food pavilion to introduce premium products from the city to the mainland market.

The council was also showcasing the city government’s GoGlobal programme at the services pavilion this year. The organisation was a core member of the task force set up by the Hong Kong government to help mainland enterprises expand overseas, Ma said.

The mainland companies could partner with Hong Kong to tap into the city’s professional services, flagship exhibitions and global network, he added.

The council would continue to optimise its network of 51 global offices, as well as its international exhibitions, conferences and support services, to promote the efficient flow of capital, talent and technology, and to deepen international economic and trade cooperation, Ma said.

The ninth China International Import Expo runs from November 5 to 10 at the National Exhibition and Convention Centre in Shanghai.

The trade fair features an exhibition area of more than 360,000 square metres, according to the official website.

As the world’s first national-level import-focused expo, CIIE was directly planned, proposed, arranged and promoted by Chinese President Xi Jinping, and has been held annually in Shanghai since 2018, according to the organiser.

It serves as a global platform for enterprises to showcase imported products, technologies and services.

Mark Wang Yunfeng, president and chief executive officer of HSBC China, told the South China Morning Post that the trade fair was an important showcase of China’s openness, connectivity and opportunities.

“This year’s record-breaking event not only brings a wider range of innovative products to Chinese consumers but also creates more opportunities for collaboration between local and international businesses,” Wang said.

“It is also an important platform for deepening trade and economic ties between the Chinese mainland and Hong Kong, a rapidly growing corridor.”

Wang added that as a participant for nine consecutive years, the bank had seen the growing value of the event in showcasing opportunities presented by the vast market in China to global businesses.

“We look forward to joining fellow exhibitors next year to celebrate CIIE’s 10th anniversary and mark this significant milestone in our shared journey,” he said.

The bank will host a panel discussion on how to support Chinese companies expanding overseas, focusing on localising production and operations as well as developing global brand strategies, according to the bank.

It will also present its latest artificial intelligence applications at its booth, while bringing a delegation of clients from the United Kingdom to the trade fair and hosting discussions on global supply-chain strategies and investment trends.

The Hongqiao International Economic Forum features speeches from dozens of state and government leaders, as well as heads of international organisations.

The forum is held concurrently with the country and business exhibitions as a core component of the China International Import Expo.