In the Media

Prof. Heiwai Tang, Associate Dean of the HKU Business School and Director of the Asia Global Institute, has highlighted the need for Hong Kong to diversify its economy beyond its current narrow structure. To drive sustainable growth, he calls for the development of "new industries" and introduces a groundbreaking method to assess their economic contributions. This innovative approach enables the government to track industrial trends, design targeted policies, and measure their effectiveness with precision. Applying this method, Prof. Tang’s research uncovers the substantial potential of new industries to expand Hong Kong’s GDP. Fueled by rapid advancements in innovation and technology, sectors like "research, design, testing, and environmental engineering" saw their value added soar from HK$3.3 billion to HK$13.3 billion between 2000 and 2023. Similarly, "computer programming, data, and industrial internet services" has surged from HK$5 billion to HK$25.5 billion in the same period. Beyond these emerging sectors, Prof. Tang underscores Hong Kong’s pivotal role in the global supply chain. He notes that productive services, ranging from logistics to legal services, are essential in supporting not only local industries but also worldwide supply networks, making them a vital component of Hong Kong’s economic future.

Earlier, the U.S. and China engaged in tariff talks in Geneva and unexpectedly reached a consensus for a truce, temporarily lowering tariff rates to levels prior to the so-called "Liberation Day" in the U.S. However, the global situation remains difficult to restore to its previous state. U.S. President Trump has been employing so-called negotiation tactics, fluctuating offers between high and low, and using both genuine and deceptive strategies to create negotiation space for his side. Yet, due to a lack of confidence and logical inconsistencies, the trade war resembles a poorly executed circus act, pushing the global economic policy uncertainty index to a historic high.