HK firms ready to fight trade turmoil: industry groups
HK firms ready to fight trade turmoil: industry groups
Wingco Lo said Washington's volatile trade policies have eroded the trust that anchored a once solid relationship between Hong Kong and the US. Photo: RTHK
Steve Chuang said trade tensions are nothing new for Hong Kong firms, citing the opening round of tariffs during the first Trump administration. Photo: RTHK
Hong Kong firms are well-positioned to weather trade disruptions brought by US tariffs, with some already pivoting to emerging markets such as the Middle East and the Global South, according to two industrial groups.
The Chinese Manufacturers' Association of Hong Kong, which represents more than 3,000 companies, said while the United States remains an important trading partner for the SAR, things have now become unpredictable.
"Rising geopolitical risks and volatile trade policy have eroded much of the trust that once anchored this relationship," the association's president Wingco Lo told RTHK.
"There's a clear pivot towards the emerging regions, including the Middle East and Global South, such as Asia, Africa and Latin America.
"These markets are increasingly attractive, not only as a way to spread risk, but also to tap into rising consumer demand and more stable trade environments."
Lo said Middle Eastern nations are also trying to diversify their economies and wean off their reliance on oil exports.
"These countries are rolling out ambitious urban development projects, and Hong Kong's strength in urban planning, construction, (information and communications technology) and fintech makes us a natural partner," he said.
Lo is among dozens of Hong Kong and mainland business leaders joining Chief Executive John Lee's delegation to Qatar and Kuwait this Saturday.
Lo outlined areas where the SAR can shine in the Middle East.
"As capital from the region looks for global investment opportunities, services like asset management, insurance, legal and compliance, which are areas where Hong Kong excels, are in greater demand than ever," he said.
Steve Chuang, chairman of the Federation of Hong Kong Industries who is also on the delegation, said SAR firms have been looking for new markets since US President Donald Trump first took office in 2017.
'Asean [nations] have become the biggest trade partner to China, so that reduces our independence to the Western markets. And I think Hong Kong's business, they are really looking forward to build the new network. And the Middle East as a part of the Global South becomes critical because this market is a new emerging market,' he said.
Chuang added Hong Kong and mainland enterprises should complement each other by utilising their unique strengths.
"We play different roles. They (mainland firms) may be very good in technology, but we can offer them the right platform and to provide the financial services, we provide the legal services, we are very good in connecting to the world," he explained.
"That can really reflect Hong Kong as a super connector and a super value adder."
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