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Hong Kong is a highly developed economy with close to 94% of its gross domestic product (GDP) generated by the service sector. However, in the current service sector structure lies a “binary structure trap”.

Prof. Heiwai Tang, Associate Dean of HKU Business School, said during a TV interview that, night-time consumption vouchers might only be a band-aid solution in boosting the local economy.

China’s economy is currently in a period of deep structural transformation. Despite the potential of its 1.4 billion-strong domestic market, the contraction of the wealth effect triggered by the real estate correction, together with a high household savings rate (exceeding 43% in 2024) and weak consumer confidence, is constraining the release of domestic demand.

Prof. Heiwai Tang, Associate Vice-President (Global) of The University of Hong Kong and Associate Dean (External Relations) of HKU Business School, believes Hong Kong should first focus on promoting IP development in the cultural industries and life sciences technology.

The Chinese economy is in a state of “strong supply and weak demand”. While production capacity continues to leap forward, domestic demand has not expanded in tandem. Data from the General Administration of Customs shows that on 11 January 2025, China’s trade surplus reached a new high of US$1.076 trillion.

At the New Vision Economic Summit 2025, hosted by Sing Tao News Corporation, Prof. Heiwai Tang, Associate Vice President (Global) of The University of Hong Kong and Associate Dean of HKU Business School, and Prof. Zhenhua Mao, Professor of Practice in Economics at HKU Business School and Member of the Chief Executive’s Policy Unit Expert Group, shared insights on how fierce domestic competition is driving Chinese enterprises toward global markets.

In an article published by Bloomberg’s Newsletter, Prof. Heiwai Tang, Associate Vice-President of The University of Hong Kong and Associate Dean of HKU Business School, was interviewed about his thoughts on Hong Kong’s potential to become a global hub for higher education. “We have always been a university city,” he said, adding that what’s perhaps different now is that the ingredients are in place to catapult the city into the top tiers of higher education worldwide.

Two years ago, we wrote the article “Commercialization of Intellectual Property Benefits High-quality Economic Development” in this newspaper column and, together with the Hong Kong Young Industrialists Council, published the “IP Commercialization: A Boost for Hong Kong Re-Industrialization Strategy” research report.

In an interview with the Hong Kong Economic Journal, Prof. Heiwai Tang, Associate Vice-President of HKU and Director of the Asia Global Institute, explained that China's focus on technological development is driven by strategic geopolitical goals for long-term independence, rather than immediate economic growth. While innovations like AI enhance future prospects, they have not yet resulted in significant near-term economic recovery. Tang noted that prioritizing technology may temporarily widen wealth disparities, as AI could replace traditional workers.