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Hong Kong manufacturers are shifting from the US and European markets to the emerging Belt and Road markets – Central Asia, for its abundant natural resources, said Wingco Lo Kam-wing, president of the Chinese Manufacturers' Association of Hong Kong.
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Kazakhstan and Uzbekistan are the two largest economies in Central Asia, Lo noted, adding that the countries’ abundance of natural resources and rapidly developing industries are ideal for Hong Kong firms to explore new business opportunities.
While the region’s trade volume is smaller than that of other emerging regions, such as Asean and the Middle East, Lo said Central Asia’s rapid development is often overlooked.
“The trade volume between Hong Kong and Central Asia has tripled compared to 10 years ago,” Lo said.
He also mentioned that Hong Kong’s double taxation agreements stimulate bilateral commerce and investment by providing tax certainty, reducing cross-border costs, and mitigating the financial risks of overseas operations.
Apart from financial and professional services, Lo said Kazakhstan’s core export and revenue drivers – crude oil and natural gas – offer China and Hong Kong an alternative energy source alongside the Middle East, contributing to a stabler energy supply and pricing.
He cited the Central Asia-China gas pipeline, a major transnational energy network that transports natural gas from Turkmenistan, Uzbekistan, and Kazakhstan to China’s Xinjiang region.
Lo said he looks forward to engaging with local officials to develop better investment strategies and leveraging Hong Kong’s role as a super-connector to deepen trade in innovative technology, light industries, green development, and commodities. He added that CMA will sign memorandums of understanding with local firms for long-term cooperation.
