business

John Lee: Hong Kong leader vows to shore up global business role

July 9, 2022
Anita Leslie

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The previous British colony’s reputation as an worldwide economical center has been battered through the previous two years by its adherence to China’s unbending Covid limitations. They have produced the city much less attractive for expats and substantially tougher for overseas executives to go to.

Speaking in Mandarin at his inauguration, attended by Chinese President Xi Jinping, the chief executive of the Hong Kong government said he would “consolidate” the city’s “inherent useful industries.”

Lee did not give any policy detail, nor did he deal with escalating pushback from the city’s controversial Covid policies and border controls that have alarmed a lot of worldwide companies.

Before this yr, a study of European corporations in Hong Kong uncovered that practically half of them have been contemplating relocating in the subsequent yr.

That tracked with a identical report from the American Chamber of Commerce in January, which located that 44% of expats and organizations were being likely to leave the town.

“Hong Kong nonetheless holds enterprise chances but an array of concerns, in particular draconian journey limits and worsening US-China relations, weigh on sentiment,” the US report said.

Hong Kong has only one real rival for businesses thinking about leaving

Hong Kong’s quarantine regulations are notorious between residents and expats. At a single stage, the governing administration expected most inbound travelers to isolate in hotel rooms, on their have dime, for three months, one particular of the world’s longest isolation intervals.

Whilst Hong Kong officials have lifted flight bans and scaled back again the quarantine requirements, an outflow of expertise is previously enjoying out.

Even without the need of the Covid crisis, headhunters had been acquiring problems bringing expertise to Hong Kong due to the fact of Beijing’s growing oversight of the semi-autonomous territory.

Xi, in his speech at Lee’s inauguration ceremony on Friday, claimed Beijing would “completely guidance Hong Kong” in “consolidating its status as an international money, delivery and trade centre” and “preserving a cost-free, open up and controlled business atmosphere.”

Aside from maximizing Hong Kong’s recent position in finance and shipping, Lee reported his authorities would also make up the city’s technological know-how and innovation industries.

“We will develop rising industries, and make Hong Kong into an global innovation centre,” Lee claimed.

In the course of his speech, Lee extolled China’s Belt and Street and Greater Bay Location initiatives, which he said have specified Hong Kong “unlimited alternatives and unlimited development area.”

— Alex Stambaugh, Charlie Fong, and Allison Morrow contributed to this report.

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