Strategic firms race to HK despite tariffs

Aiden He

Hong Kong will tomorrow unveil a new batch of more than a dozen strategic enterprises that include companies specializing in fields such as smart transport, service robots and cancer treatment devices, according to Financial Secretary Paul Chan Mo-po.

The fourth batch, which has pledged to set up or expand their business in the city, will sign a partnership agreement with the Office for Attracting Strategic Enterprises - or Oases.

Among them are a company focusing on developing high-precision artificial intelligence with its smart transport products and solutions already deployed in over 50 cities across the mainland, and a commercial service robotics firm whose products are exported to more than 40 countries and regions, Chan posted on his blog.

A medtech company specializing in surgical equipment that has been used to treat more than 300,000 tumor cases globally is also part of the latest batch, he said, adding that the organization has filed for more than 900 patents.

These enterprises bring with them cutting-edge technologies, internationally competitive products, and innovative services, Chan pointed out. In just over two years, Hong Kong has successfully attracted more than 80 key enterprises, which are expected to invest nearly HK$50 billion and create over 20,000 jobs in the coming years, he said.

These companies will also help accelerate the territory's push for new industrialization and inject fresh momentum into Hong Kong's development, Chan added.

Oases was established in 2022 to attract high-potential and representative strategic enterprises from around the globe, particularly those from certain industries, to expand their presence in Hong Kong.

A total of 66 strategic enterprises were drawn to the city in the first three batches, including 22 from the life and health technology sector, 24 from the AI and data science field, 12 from the advanced manufacturing and new energy technology area, and eight financial technology firms, according to Deputy Financial Secretary Michael Wong Wai-lun.

Among the firms that Oases has attracted, nearly half are leading enterprises, and 80 percent of them planned to establish their global or regional headquarters in the city, Wong said in a written reply to lawmakers in December. All but two of the enterprises had already commenced their operations, Wong noted at that time.

While most of them are from the mainland, there are also at least 12 foreign companies, including 10 from the United States, and one each from France and Britain.

Government officials have made it clear that Hong Kong does not need to offer any special incentives to the strategic enterprises as they were attracted to the city by its future development opportunities.

Chan vowed to further strengthen Hong Kong's investment promotion efforts, leveraging its unique position as a highly internationalized platform that bridges China and the world. Chan also said he strongly opposed the US-imposed reciprocal tariffs while pledging that the city will remain free and open despite that.

He noted that rising geopolitical tensions are clouding the global trade outlook, and as an international trading hub, Hong Kong will inevitably feel some short-term impact.

He said the Hong Kong government has been closely monitoring and assessing the situation, while providing multifaceted support to local businesses.

He pointed out that the US share of Hong Kong's total goods exports had already declined from 8.6 percent in 2018 to 6.5 percent last year.

aiden.he@singtaonewscorp.com