Editorial | John Lee keeps a level head in the face of multiple challenges in Hong Kong

Economic volatility and geopolitical tensions are hurting confidence around the world, and Hong Kong is no exception. It is good, therefore, that Chief Executive John Lee Ka-chiu, in an interview with this newspaper to mark his third year in office, has highlighted the many opportunities that are available to drive this city forward.

Despite growing US hostility and restrictions on trade and other areas, Lee is determined to build on Hong Kong’s many unique advantages under the “one country, two systems” governing principle. These include maintaining Hong Kong’s status as a free port that Lee believes is the city’s “successful DNA” and further enhancing integration with mainland China without losing sight of our international connections. Lee also vowed to do more to help businesses reduce reliance on the US and tap opportunities in new markets, including in the Middle East and Southeast Asia.

Lee is well aware of the economic and livelihood challenges facing this city, citing data that offers a mixed picture. Nonetheless, he sees an improvement in the overall economy, while conceding some sectors, such as the retail and restaurant trades, are under huge pressure.

With the unemployment rate ticking up and more shops, restaurants and cinemas closing, the predicament facing some industries must not be underestimated. How to divide the growing economic pie equitably and ensure all sectors of business and society can benefit remains a priority.

Lee has rightly resisted the temptation to retaliate against the United States, which has imposed tariffs on goods shipped from the city as well as preposterous sanctions against Hong Kong officials. It is also good to learn that the government, while not showing its cards, is preparing to deal with the worst-case scenario should US-China relations continue to deteriorate.

Lee’s pledge that the local currency’s peg to the US dollar will stay is the strongest assurance yet that the city’s role as an international financial centre will continue. But Lee also warned that private enterprises would harm their own interests if their business decisions did not align with national interests and security. These interests, he said, were not mutually exclusive. Earlier, CK Hutchison Holdings drew the ire of Beijing over its plan to sell overseas ports to a consortium led by the American investment firm BlackRock.