Paul Chan: «Hong Kong Has All It Takes to Prevail»
Hong Kong’s financial secretary Paul Chan outlined moves that the city could take moving forward to stay competitive in an era of geo-economic fragmentation.
Hong Kong faces risks as a global hub especially as geopolitical tensions rise in an increasingly divisive world. According to local financial secretary Paul Chan, the challenges are underscored by geo-economic fragmentation which is reshaping trade, capital flows and talent flows.
«[These challenges] will push up costs, stifle innovation, and disrupt talent exchange, detrimental to global economic progress,» said Chan in a speech at the Hong Kong General Chamber of Commerce’s 30th «International Business Summit».«Now, the risks are looming larger, as the President-elect of the US expressed his intention, just this Monday, to impose tariffs not only on China, but also on its two neighbors.»
Three Observations
Nonetheless, Chan expressed optimism especially with regards to the «Global South asserting greater influence», underlining a promising outlook in regions like Southeast Asia and the Middle East. He also shared three observations that could continue to drive competitiveness in Hong Kong.
First is reinforcing and expanding connectivity, not only with ASEAN and the Middle East but also with the US and several European countries like the UK. Second is the accelerated development of the innovation and technology sector, though he noted that financial services would continue to be a key driver of growth. Thirdly, he highlighted alignment with the shifting industry chain and supply chain in the region.
«Ladies and gentlemen, it is true that we are navigating an uncertain world. But as a city that has always thrived on changes and challenges, Hong Kong has all it takes to prevail,» Chan added.
