Editorial | Net for foreign firms in Hong Kong cast wider by OASES
Faced with a sluggish economy and uncertain geopolitical landscape, reaching out to Europe and beyond may help broaden Hong Kong’s pool of strategic investments
It is no secret Hong Kong’s economy has slowed. A key part of its growth strategy is to attract outside companies offering innovation and advanced technology. Since the end of Covid restrictions, dozens of firms, enticed by the city’s myriad advantages, have set up shop here. They include such big names as food delivery giant Meituan and British-Swedish pharmaceutical powerhouse AstraZeneca.
That is mostly thanks to the efforts of the government’s Office for Attracting Strategic Enterprises (OASES). Most of these companies, though, have been from the mainland. Recognising the need to diversify its pool of outside firms, OASES officials are off to Europe, especially the United Kingdom and France.
They have picked an opportune moment to promote the city. When OASES was set up in 2022, there were concerns its work would be hampered by geopolitical tensions between China and the West. This was especially so with hostile rhetoric frequently coming from leaders of the European Union and the UK against Beijing.
But the return of Donald Trump to the White House and his less sympathetic stance have forced many European leaders to reassess their positions vis-a-vis China. They now need to hedge against an uncooperative, perhaps even hostile Washington not only geopolitically but also economically. France under President Emmanuel Macron has enjoyed good ties with China. Taking over from the less friendly Conservative government, British Labour Prime Minister Keir Starmer looks willing to reboot bilateral relations.
In this changed climate, OASES has its work cut out with those two countries, and Europe as a whole. Both sides need to recalibrate their business and strategic relations with Washington. And it is not just Europe. OASES is casting its net widely over the Middle East as well as countries involved in the Belt and Road Initiative in Asia and Africa.
While Beijing is building on global goodwill and promoting industries from artificial intelligence to 5G telecommunications worldwide, the US is sounding more confrontational by the day. Hong Kong can ride on this momentum. As a springboard to the tech-oriented Greater Bay Area and beyond, it’s time for our city to welcome the world back and shine again.