Algernon Yau Ying-wah, Secretary for Commerce and Economic Development, said Hong Kong’s economic growth will be heavily weighed on re-export trade, warning against over-reliance on the AI boom and urging the city to explore new trade corridors.
Yau mentioned on a local radio show on Sunday that Hong Kong’s exports in September surged 64.9 percent from a year earlier – the fastest single-month increase in 40 years – and that artificial intelligence significantly contributed to the growth momentum.
Slow Down AI Development and Explore New Industry Drivers
Yau highlighted that AI-related electronic products underpinned Hong Kong’s re-export trade this year, lifting the trade value to over HK$700 billion, equivalent to 1.4 times the city’s gross domestic product.
However, he cautioned that the AI boom may eventually slow down amid the constantly evolving global landscape and divergent views on its advancement worldwide, noting that Hong Kong remains subject to external influences.
Although AI development is currently on an upward trajectory, Yau questioned whether the boom will gradually subside. He stressed that Hong Kong should adjust its strategies when necessary and further broaden its trade connections.
Yau pointed out that, as a super connector and super value-adder, Hong Kong serves as a conduit for global trade while also providing access to the Chinese mainland market.
He added that re-export trade contributes significantly to Hong Kong's economy, driving employment in finance, legal, and accounting sectors, as well as the development of the airport, port, and freight industries.
