ASEAN rises as HKSAR trade undergoes diversification

The export markets of the Hong Kong Special Administrative Region (HKSAR) are undergoing a diversification process, with more focus shifting toward emerging markets amid a decrease in exports to traditional markets such as the US and Europe, Hong Kong Financial Secretary Paul Chan Mo-po said in a post on his blog over the weekend.

He highlighted expanding trade ties with the Association of Southeast Asian Nations (ASEAN), whose share of exports by value reached 7.9 percent in 2023, compared with 6.1 percent in 2022, making it Hong Kong’s second-largest export market after the Chinese mainland.

As the global trade landscape evolves, the city’s exports to the US dropped from 18.6 percent of the total in 2003 to just 6.5 percent last year, while exports to the EU decreased from 10.5 percent to 6.6 percent in the same period, according to Chan.

The changes in Hong Kong’s trade structure reflect the changes of the global economic landscape and an adjustment in Hong Kong’s role, Liang Haiming, an expert on the Hong Kong economy and chairman of the China Silk Road iValley Research Institute, told the Global Times on Sunday.

The prospects of Hong Kong’s industrial and export development are promising, Liang said, while taking note of Hong Kong’s unchanged status as an international financial and commercial hub, which will continue to attract multinational corporations.

Hong Kong’s active participation in regional cooperation also opens up more trade opportunities. By actively participating in the Belt and Road Initiative and trade cooperation with ASEAN member countries, Hong Kong explores broader markets and investment opportunities for local businesses, Liang stated.

Amid the rapid shifts in exports, Hong Kong’s trade has seen a quick recovery, with exports in January seeing a year-on-year increase of 33.6 percent, the largest rise since February 2021, to HK$388.7 billion ($49.7 billion).

Its imports grew by 21.7 percent, reaching HK$385.1 billion, according to the Census and Statistics Department of the HKSAR government.