Hong Kong is positioning itself as a vital hub connecting mainland China with global markets, with a particular focus on expanding trade ties with countries in the Global South. This strategic shift is driven by evolving geopolitical dynamics and slower growth in developed markets such as Europe and the United States.
The Hong Kong Trade Development Council (TDC), which plays a central role in promoting the city’s trade, is adapting its approach to support both local and mainland firms in exploring new global opportunities. Despite the introduction of fresh U.S. tariffs, TDC chairman Frederick Ma Si-hang anticipates a 20 percent increase in Hong Kong’s annual exports, attributing much of the expected growth to emerging markets in Africa, Central Asia, the Middle East, and Central and South America. Additionally, emerging opportunities in Nordic countries, Poland, and Turkey have been identified as potential growth areas.
Trade between Hong Kong and African nations reached US$6.53 billion last year, buoyed by Beijing’s policy of offering zero tariffs to 53 countries across the continent. To bolster ties, the TDC will expand its international presence to 52 offices worldwide, including a new center planned for Cairo. This aligns with the city’s investment promotion agency, InvestHK, which already operates in the Egyptian capital. Central Asian markets have also gained prominence due to their strategic position in China’s Belt and Road Initiative. Earlier this year, Chief Executive John Lee Ka-chiu led a delegation to the region to explore further collaboration.
To enhance efficiency, the council is reorganizing its trade promotion work into six industry clusters, each managed by dedicated personnel focused on finance and professional services, global supply chains, technology and digital innovation, wellness and creative industries, consumer goods, and corporate development. This structure aims to deliver more targeted support and specialised programmes.
Southeast Asia continues to be a cornerstone of Hong Kong’s trade strategy. Malaysia, in particular, stands out as the city’s second-largest foreign investor after Singapore, with investments totaling US$34.8 billion. The TDC is preparing to launch a major business matchmaking campaign in Kuala Lumpur next month to strengthen commercial ties across the region. Furthermore, the Hong Kong stock exchange is set to open its market to secondary listings from Bursa Malaysia, following similar arrangements with exchanges in Indonesia, Singapore, and Thailand.
While geopolitical tensions with Western countries have complicated the operations of Hong Kong Economic and Trade Offices abroad, the TDC, as a statutory body perceived as more neutral, is seen as having an advantage in navigating these challenges. Marking its 60th anniversary, the council is embracing a broader mandate, representing not just the city but the nation’s interests in the global trade landscape.