Trade war won't impact Hong Kong's role as global hub for commerce: John Lee
Hong Kong's role as a major global centre for commerce remains unchanged amid a trade war, the chief executive told hundreds of tourism leaders on Tuesday as the city played host to one of the largest Chinese tourism summits.
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In his opening speech at the 2025 World Tourism Cities Federation Fragrant Hills Tourism Summit, Chief Executive John Lee Ka-chiu affirmed that Hong Kong would continue to be a 'major global trading centre' and 'a centre of free trade'.
'That's thanks … to the Hong Kong port in our harbour, to the Hong Kong International Airport, and to our varied and seamless transport links to China, our country,' he told a room of 800 tourism leaders.
'These seamless links, and our singular status as the city where East has long met West, are not going to change.
'In a world beset by trade woes and geopolitical crises, Hong Kong is determined to continue its dedication to free and open trade.
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'This was what also allowed Hong Kong to become 'one of the world's greatest centres for tourism.''
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Asia Times
an hour ago
- Asia Times
Price war sparks EV financial crisis concerns in China
BYD, the world's largest electric vehicle (EV) manufacturer, is facing growing challenges from an intensifying price war and a change in supplier payment regulations in China, raising market concerns about the company's financial stability. On May 23, the Shenzhen-based EV maker initiated a price war in China by offering discounts of 10 to 30%. It priced some affordable models under 150,000 yuan (US$20,890), and the Xia MPV (multi-purpose vehicle) at around 200,000 yuan. It also offers its Ocean range's Seagull at a starting price of 55,800 yuan, down from the official guide price of 69,800 yuan. BYD's Hong Kong-listed shares have fallen by 15.5% from their peak of HK$155 (US$19.7) on May 23. The company's market cap has decreased by some US$22 billion over the period. BYD executive vice president Stella Li told Bloomberg in an interview on June 12 that the 'very extreme, tough competition' in the Chinese EV market is unsustainable. Li did not say whether BYD would scale back its discount program, but she stated that the company will invest up to $20 billion to expand its operations in Europe over the next few years. She highlighted Germany, the United Kingdom and Italy as BYD's key European markets. 'If we decide to do something, we put all our resources behind it,' she said, referring to the company's commitment to after-sales service in Europe. 'We want to ensure it's successful in the long run.' Last October, the European Union imposed tariffs ranging from 17% to 35.3% on Chinese EVs (BYD: 17%, Geely: 18.8%, SAIC and others: 35.3%). China suggested setting minimum prices for the EVs it ships to the EU. Both sides are still negotiating the matter. In March, BYD said it is considering setting up its third European assembly plant in Germany. It has a factory in Hungary and is building another in Turkey. When BYD announced its price cuts on May 23, one of its rivals warned of a possible Evergrande-like debt crisis in China's auto sector on the same day. (Evergrande is China's highly indebted property company that has come to epitomise the sector's ongoing crisis.) 'An Evergrande of the auto industry already exists, though it has yet to explode,' Wei Jianjun, chairman of Great Wall Motors, said in an interview without naming any company. 'The current automobile industry is facing a serious problem of being coerced by capital,' Wei said. 'Some automakers are addicted to burning money for market share.' He said some Chinese automakers over-rely on financing from the capital market to boost production scale and market share, but ignore their profitability and technological innovation. He said these firms' capital chains will break if the market environment changes. He stated that the bankruptcy of any large auto firm would result in many people losing their jobs, harm upstream and downstream companies, and negatively impact the Chinese economy. Li Yunfei, general manager of BYD's brand and public relations division, responded to Wei's comments in a Weibo post on May 30. 'Following the stunning comments made by Great Wall Motors' Wei, many articles and videos said BYD is an Evergrande in the auto sector,' Li said. 'I feel confused and angry, and find these comments laughable.' 'If BYD's debt-to-asset ratio (70%) is a sign of high risk, are Ford (84%), General Motors (76%), and Geely (68%) all at risk?' he said. He said many malicious commentators ignored that BYD's interest-bearing debts and accounts payable are lower than many other players. He added that Chinese EVs have become mainstream products overseas and will continue to see good prospects. The Ministry of Industry and Information Technology (MIIT) said on May 31 that automakers should avoid disorderly price wars and maintain fair competition. The People's Daily commented that consumers would not benefit from price wars, which would drive automakers to use low-quality parts, reduce after-sales service and cut research and development expenses. Citing industry data, the newspaper reported that the average net margin of Chinese automakers fell to 4.3% in 2024, down from 5% in 2023. For 2024, BYD's net profit rose 34% to 40.3 billion yuan, while revenue grew 29% to 777.1 billion yuan. At the end of 2024, the company's total debt rose 10.3% to 584 billion yuan, and its total assets increased 15.3% to 783 billion yuan. Its debt-to-asset ratio, or debt ratio, fell 3.2 percentage points to 74.64%. For the same period, Nio, a Shanghai-based EV maker, had a debt ratio of 87.45%, and Great Wall Motors' was 65.96%. Heavily indebted Chinese property developers have around 60-90% debt ratios. However, accounting consultancy GMT Research said in January that BYD's net debt might be 323 billion yuan as of mid-2024, contrasting with the official figure of 27.7 billion yuan. It stated that the company's Dilink platform, a supply chain financing system, may conceal a substantial amount of off-balance sheet debt. In other words, BYD may have delayed supplier payments. Wang Guo-chen, an assistant researcher at Taiwan's Chung-hua Institute for Economic Research (CIER), said BYD is only one of the many Chinese firms struggling to survive in an oversupplied market. On March 25, China's State Council amended the Regulation on Ensuring Payments to Small and Medium-Sized Enterprises, requiring companies to pay their suppliers within 60 days, effective June 1. BYD said on June 11 that it will standardize its payment period for suppliers to 60 days. 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HKFP
an hour ago
- HKFP
Hong Kong Originals: The 85-year-old flask brand that bears witness to rise and fall of city's manufacturing era
As Hong Kong's economic boom faded and manufacturing moved to China, some long-established, family-run companies preserved their traditions as others innovated to survive. In our new series, HKFP documents the craftsmanship and spirit behind the goods that are still proudly 'Made in Hong Kong,' as local firms navigate the US-China trade war. Few guests staying at the Camlux Hotel in Hong Kong would know that a giant glass furnace once lay beneath where they are spending the night. The Kowloon Bay hotel was formerly the factory building of Camel, an 85-year-old local metal kitchenware brand. The company moved into the premises in 1986 and vacated the property in 2013. Four years later, Camel opened a hotel in its place as part of a government revitalisation plan for the industrial district. Speaking to HKFP at the hotel on Monday, Raymond Leung – Camel's third-generation director – said his grandfather, Leung Tsoo-hing, founded the company Wei Yit Vacuum Flask Manufactory in 1940 after seeing a demand for vacuum flasks. Back then, electricity was a luxury, and few households had fridges and kettles. An insulating container thus emerged as a common household item for keeping drinks hot or cold. 'Being Chinese, being Asian, we drink a lot of hot drinks,' the younger Leung said, adding that his grandfather – who had been exporting vacuum flasks from Hong Kong to Penang, Malaysia – 'wanted to create his own brand of thermal flasks.' The brand name 'Camel' was chosen to reflect the flask's function and the company's resilience. Camel became one of the few manufacturers to make flasks with an inner glass wall allowing the container better insulation than those with just a metal body, said Leung, 47. 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Today, like many of the city's homegrown brands, part of Camel's production takes place across the border in mainland China – a move that is neither new nor avoidable, the director said. Former manufacturing hub Hong Kong saw its manufacturing heyday from the 1950s to the 1970s, with factories – concentrated in areas such as Sham Shui Po, Mong Kok, Kowloon City and Western – producing everything from clothes and toys to watches and electronics. Its rise as an export-oriented economy came amid World War II's destruction of industrial bases in Europe and America. Hong Kong seized the opportunity, resuming production and supplying goods to the world. The director's father, Philip Leung, studied engineering in the UK and later completed a postgraduate degree in glass technology. He returned to the city in the 1960s, when he was in his late 20s, to help with the family business. 'He wanted to bring back the knowledge from the Western world,' Raymond Leung said. Under Philip Leung's leadership, Camel ramped up its manufacturing, expanding its production of metal flasks, ice buckets, and plate covers to supply hotels around the world. In the 1980s and 1990s, Hong Kong's manufacturing industry began losing its edge to mainland China, as the latter modernised under the government's reform policies. Many companies in the city relocated their production across the border, attracted by cheaper labour and other costs, but the Leungs stayed put. While minor parts were sourced from mainland China, Camel products' main components were always made in-house. But over the decades, it became clear that it would not last. In 2006, Camel turned off its glass furnace, which was operating on the third floor of what is now the Camlux Hotel, for good. The company was unable to find enough people to operate the furnace after some of its workers passed away. 'Because it's a furnace, you can't turn it off. 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'You can't always go back to your archive,' Leung said. 'You have to move on.' Original reporting on HKFP is backed by our monthly contributors. Almost 1,000 monthly donors make HKFP possible. Each contributes an average of HK$200/month to support our award-winning original reporting, keeping the city's only independent English-language outlet free-to-access for all. Three reasons to join us: 🔎 Transparent & efficient: As a non-profit, we are externally audited each year, publishing our income/outgoings annually, as the city's most transparent news outlet. 🔒 Accurate & accountable: Our reporting is governed by a comprehensive Ethics Code. We are 100% independent, and not answerable to any tycoon, mainland owners or shareholders. Check out our latest Annual Report, and help support press freedom.
HKFP
11 hours ago
- HKFP
Thousands evacuated as Typhoon Wutip nears south China, state media report
Chinese authorities on the southern island of Hainan have evacuated thousands of people, closed schools and halted rail services ahead of the expected landfall of Typhoon Wutip later on Friday, state media said. More than 16,000 people have been moved from 'construction sites, low-lying flood-prone areas and regions at risk of flash floods', Xinhua news agency said, while over 40,000 working on boats had been moved ashore. Footage from state broadcaster CCTV showed palm trees in Hainan waving violently in the wind, while other trees had toppled onto deserted roads as workers raced to clear the debris amid pouring rain. Other images published by CCTV showed China National Offshore Oil Corporation workers with backpacks and other luggage leaving a ship and waiting at the port to board buses. Wutip is expected to bring torrential rain exceeding 100 millimetres across six cities and counties, as well as winds of up to 63 miles per hour (101 kmh), Xinhua said. Hainan has stopped high-speed rail services and its southernmost city of Sanya closed schools and tourist sites, as well as suspending all flights at its airport. Wutip, the first typhoon to make landfall in the country this year, formed over the South China Sea on Wednesday, the China Meteorological Administration (CMA) said. It may make landfall again along the coast from western Guangdong to Guangxi on Saturday, maintaining 'severe tropical storm intensity' before turning northeastward and gradually weakening, the CMA said. Guangdong raised its emergency response level on Friday morning, preparing rescue vessels and more than 30 tugboats for potential emergencies, Xinhua said. More than 49,000 fishing boats in the province have returned to ports, with 10,000 of their crew members coming ashore, it said. China has endured spates of extreme weather events from searing heat and drought to downpours and floods for several summers running. The country is the world's largest greenhouse gas emitter but also a renewable energy powerhouse, seeking to cut carbon dioxide emissions to net zero by 2060. Torrential rains last August triggered by Typhoon Gaemi, which moved from the Philippines and Taiwan to make landfall in eastern China, killed at least 30 people and left dozens missing.
