Once merely a source of low-cost labor, Asia has now a large role to play in the global economy, according to Hong Kong Monetary Authority chief Eddie Yue, who spoke about how the city fits in all of this as a financial hub.
From electric vehicles to artificial intelligence capabilities, most notably the recent emergence of DeepSeek in China, Asia’s economy has been maturing to play a more critical role in the global economy.
«Asia is no longer just the world’s factory or a source of low-cost labor. It has emerged as a powerhouse of innovation and consumption, with China leading the way,» said Eddie Yue, chief executive of the Hong Kong Monetary Authority (HKMA), in a speech at the ASIFMA Annual Conference.
New Growth Corridors
Exchange within Asia has been a driver of such economic developments leading to new growth corridors.
In 2024, ASEAN became China’s largest trade partner, accounting for 16.4 percent of Chinese exports and 15.3 percent of imports. This has resulted in deeper integration of supply chains and increased cross-border investments.
Hong Kong’s Role
Yue highlighted that Hong Kong has a unique role to play in Asian trade relations as an international center in functions such as cross-border payments and financing services. According to a working group established by the HKMA to study future supply chain shifts and develop policy recommendations, there are three emerging themes viewed as key to «capturing the opportunities from the new business corridors in the region».
First is the importance of digitalization and innovation in areas like electronic documentation and tokenization. Second is sustainability and Hong Kong’s commitment to «an orderly and inclusive transition». Third is engagement with mainland Chinese corporations and investors.
«To conclude, I would just say that the China-ASEAN corridor is definitely expanding at a rapid pace, and Hong Kong is right in the middle,» Yue added.
