The city believes that despite the geopolitical headwinds, businesses will be able to see the benefits of how global and China advantages can all be found in a single economy in Hong Kong.
This is a point that Micro-Pak’s Berman agrees with, having operated in Hong Kong for almost 30 years.
As an American, he said he believes the Trump administration “is making it difficult to do business no matter where you are”.
Although the city is increasingly being subjected to the same tariffs affecting China, Berman noted: “If you’ve decided that this is the part of the world you’re dealing in, honestly, I don’t see any risk factors beyond what you would see in any (other) place.”
But economists warned that as tensions continue to simmer between China and the US, the most viable path forward for Hong Kong may be doubling down on its China advantage – even if it comes at the cost of diluting its status as a global hub.
Gary Ng, senior economist at investment banking firm Natixis, said Hong Kong has been one of the biggest winners from the trend of globalisation over the past two to three decades, especially when geopolitical tensions were less.
“But what we see over the past years is that companies start to think and manage the risk between the Chinese market versus the rest of the world. So I think this change is really a very big challenge for Hong Kong,” Ng noted.
“If the world is still interested in the Chinese market, then Hong Kong can still be a greater China headquarters in that essence. So I think it really depends on which sector it is.
“But in general, definitely the attractiveness may be lower than before and the challenges will be more,” he added.
https://www.channelnewsasia.com/east-asia/hong-kong-future-global-hub-challenges-usa-china-tensions-5172216
