Opinion | Hong Kong must embrace digitally-enabled trade to tap belt and road opportunities

Hong Kong has long been one of the key conduits for trade between China and the rest of the world. And although its role as the hub for manufacturing trade may be waning as the growth of global trade in goods slows, that doesn’t mean there isn’t room for reinvention.

The “Belt and Road Initiative” obliquely refers to the historic, often romanticised Silk Road, which put China at the centre of trade. This new route once again puts Greater China at the epicentre of connectivity between more than 60 countries from Asia to Europe via Southeast Asia, South Asia, Central Asia, West Asia and the Middle East. As the Hong Kong Trade Development Council notes, “Hong Kong is the perfect launch pad to assess feasibility, potential and risk of Belt and Road projects”.

The image of camels crossing a desert or ancient wooden sailing ships spring to mind when one thinks of the Silk Road – and if you think of the belt and road without including digital solutions, then you’re planning is nearly as archaic as those camels and wooden ships.

The share of global service trade in industries such as banking, media, and consulting grew from 42 per cent in 2001 to nearly 50 per cent in 2015. But trade in services has yet to take off in Asia. In the past 15 years, the share of services trade as a percentage of total trade hovered around 39 per cent in Asia. In China, this percentage was even lower – 31 per cent.

The global shift to digitally-enabled trade presents a great opportunity for Greater China management teams. We’re already seeing early leaders, whom management teams should emulate.

Think of how Chinese payment companies are expanding their mobile payment offerings to Southeast Asia, Europe, and North America. In additive manufacturing, Matsuura Machinery and KoiWai Co, two Japanese companies, are delivering their world-class 3D printers and systems to Germany and India. Digital solutions can transcend borders; they can help grow businesses quickly without the need for bricks and mortar. And they are the ultimate disruptors of industry.