Amid global economic and geopolitical uncertainties, Hong Kong Special Administrative Region Chief Executive John Lee Ka-chiu’s upcoming visit to Laos, Cambodia and Vietnam marks a pivotal moment for East Asian economic cooperation. This visit, his third to Southeast Asia since taking office, holds significant promise for advancing regional growth, stability and collaboration.
The 10-nation Association of Southeast Asian Nations has long been integral to Hong Kong’s trade, finance and tourism sectors. Historically, Hong Kong has served as a crucial intermediary between ASEAN and the Chinese mainland, fostering economic synergy across the Asia-Pacific region. With recent political and social stability reinforced in Hong Kong, the city is better positioned to expand its economic potential and forge stronger partnerships with ASEAN.
According to Hong Kong’s Commerce and Economic Development Bureau, ASEAN is the city’s second-largest trading partner after the mainland, with bilateral trade in goods reaching a record high of HK$1,294 billion ($165.7 billion) in 2022, underscoring ASEAN’s vital role in Hong Kong’s economy and highlighting opportunities for further growth.
Lee’s visit coincides with Hong Kong’s efforts to join the Regional Comprehensive Economic Partnership, the world’s largest free trade agreement comprising 15 Asia-Pacific economies, which will offer vast opportunities for Hong Kong businesses by providing access to a broader market with preferential tariff treatments. ASEAN’s support for Hong Kong’s RCEP accession underscores the mutual benefits of this integration, heralding an era of increased trade and investment.
Lee’s commitment to enhancing economic ties aims to leverage these opportunities. His visit, on which he will be accompanied by a high-level diverse delegation from various sectors, including industry, commerce, finance, transport, logistics, law and the creative industries, underscores Hong Kong’s multifaceted approach to fostering business opportunities and expanding its influence in ASEAN markets. By showcasing Hong Kong’s versatile capabilities and strengths, the visit is aimed at boosting investment, stimulating trade, and promoting the city as a superconnector and super value-adder in the region.
Recently, at the invitation of the Chinese General Chamber of Commerce (CGCC) in Hong Kong, Federation of Filipino-Chinese Chambers of Commerce and Industry President Cecilio K. Pedro led a business delegation to participate in the CGCC World Chinese Entrepreneurs Summit 2024 in Hong Kong to discuss economic cooperation opportunities under RCEP. The Philippines, a key ASEAN member, maintains robust economic ties with Hong Kong and has historically been one of the leading sources of tourists to the city.
The implications of Lee’s visit extend beyond economic gains. Strengthening ties with ASEAN is crucial for regional stability, particularly in light of ongoing conflicts in Europe and political uncertainties in the United States. As ASEAN surpasses the European Union to become Hong Kong’s second-largest trading partner, the potential for deeper cooperation in fields such as technology, infrastructure, and green energy becomes increasingly evident. This alignment not only brings economic benefits but also fosters regional solidarity and stability.
Hong Kong’s role in the Belt and Road Initiative also enhances its strategic importance in Asia. By leveraging its position, Hong Kong can contribute significantly to regional development projects, facilitating infrastructure development and economic integration within ASEAN. This collaborative approach aligns with the broader goals of regional development and mutual prosperity.
Lee’s recent engagements reflect a forward-thinking vision emphasizing inclusivity and growth. His visit to three ASEAN countries is part of the efforts to boost Hong Kong’s economy through dynamic “diplomacy”. In his recent meeting with ASEAN Secretary-General Kao Kim Hourn, Lee expressed gratitude for ASEAN’s support and reiterated Hong Kong’s commitment to deepening trade and investment ties. Lee’s proactive approach is beneficial for both his city and ASEAN.
Hong Kong is strategically promoting its role as the connecting partner for ASEAN members seeking opportunities in the ongoing economic modernization and high-tech revolution in the mainland, particularly in the flourishing Guangdong-Hong Kong-Macao Greater Bay Area.
RCEP is expected to eliminate more than 90 percent of regional tariffs within 20 years, benefiting Hong Kong and all 10 ASEAN countries. To enhance the city’s position as a superconnector, the HKSAR government has rolled out various initiatives and funding programs, including the Hong Kong Investment Corp. A co-investment fund of HK$30 billion has also been established to attract and invest in promising companies.
Lee’s visit to Southeast Asia is a significant step toward solidifying Hong Kong’s traditional role in regional economic and trade dynamics. By strengthening ties with ASEAN countries, promoting cooperation, and exploring new business opportunities, Hong Kong is poised to enhance its economic environment and contribute to regional stability. This visit symbolizes a strong commitment to mutual growth and prosperity, paving the way for a more integrated future for Hong Kong and ASEAN.
As a superconnector linking the booming megalopolis region of the GBA and ASEAN, Hong Kong’s potential for enhanced cooperation and economic growth is immense, which promises not only sustainable economic growth but also fosters dynamic cultural and technological exchanges, ultimately contributing to a more stable, harmonious, and prosperous Asia-Pacific region.
The author is an award-winning columnist for the Philippine Star and Abante, an economics and politics analyst, book author, and honorary chairman of the Anvil Business Club.
The views do not necessarily reflect those of China Daily.
