Based on the opening remarks by the Secretary for Commerce and Economic Development at the Legislative Council Finance Committee special meeting on April 11, 2025, Hong Kong is implementing a multifaceted strategy to enhance its digital economy and international trade position. Key initiatives include:
1. Strengthening Hong Kong as an International Trade Hub
- Diversifying Trade Relations: Hong Kong is expanding its global trade network by establishing economic and trade offices in Malaysia and Saudi Arabia, and consultant offices in Egypt, Turkey, and Cambodia. These efforts aim to attract investments and facilitate business operations in emerging markets.
- Free Trade and Investment Agreements: To date, Hong Kong has signed nine free trade agreements covering 21 economies and 24 investment agreements with 33 economies. Recent agreements include those with Peru and Bahrain. Ongoing negotiations are underway with countries like Saudi Arabia, Bangladesh, Egypt, and Peru.
- Regional Comprehensive Economic Partnership (RCEP): Hong Kong is actively pursuing membership in RCEP, which encompasses economies accounting for approximately 70% of Hong Kong’s goods trade and 50% of services trade. The city aims to leverage its logistics, trade, and financial strengths to contribute to and benefit from this regional partnership.
2. Promoting the Belt and Road Initiative
- Facilitating Professional Services: Hong Kong continues to serve as a functional platform for the Belt and Road Initiative by organizing delegations, project matching activities, and forums. These efforts aim to showcase Hong Kong’s professional services and open up opportunities in ASEAN, the Middle East, Central Asia, South Asia, and North Africa.
- Upcoming Events: The 10th Belt and Road Summit is scheduled for September 2025, with encouragement for stakeholders to host related events to maximize collaborative opportunities.
3. Developing as a Regional Intellectual Property (IP) Trading Center
- Tax Incentives for IP-Intensive Industries: The government plans to review tax deduction arrangements related to intellectual property to accelerate the development of IP-intensive industries and promote IP trading in Hong Kong.
- Enhancing IP Protection and Commercialization: Ongoing measures aim to strengthen the protection of research and creative outputs, facilitating the commercialization and trading of intellectual property.
4. Boosting Economic Momentum through Digital Transformation
- Support for SMEs: The government continues to assist small and medium-sized enterprises (SMEs) through initiatives like the SME Financing Guarantee Scheme and the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund). The “E-commerce Easy” program, launched in July 2024, has expanded its regional coverage to include all ASEAN countries, encouraging SMEs to develop cross-border e-commerce projects.
- Increased Funding: An additional HK$1.5 billion has been allocated to the BUD Fund and the Trade and Industrial Organisation Support Fund, demonstrating the government’s commitment to supporting SMEs despite fiscal challenges.
- E-commerce Development: The Hong Kong Trade Development Council (HKTDC) is implementing the “E-commerce Express” initiative to address challenges faced by Hong Kong businesses in developing cross-border e-commerce in Mainland China. This includes specialized training seminars and research sharing sessions in collaboration with major e-commerce and social platforms.
- Electronic Trade Documentation: The government is studying legislative amendments to facilitate the electronic handling of trade documents, referencing the United Nations Commission on International Trade Law’s Model Law on Electronic Transferable Records. The goal is to submit relevant legislative proposals to the Legislative Council by next year.
5. Enhancing the Exhibition and Silver Economy Sectors
- Exhibition Industry Support: The “Regular Exhibition Incentive Scheme 2.0” is set to launch on July 1, 2025, pending Legislative Council approval. This scheme focuses on supporting newly established and regular large-scale international exhibitions to promote the development of the convention and exhibition industry and the broader event economy.
- Silver Economy Development: Following the 2024 Policy Address, a task force led by the Deputy Chief Secretary for Administration was established in November 2024 to promote the silver economy. The task force is implementing work plans across five areas and will report progress to the Chief Executive and the Legislative Council in early 2025-26.
These initiatives reflect Hong Kong’s comprehensive approach to strengthening its digital economy, enhancing international trade relations, and supporting various sectors to ensure sustainable economic growth.
Summary by DigitalTrade4.EU