Concerns grow among American Chamber of Commerce members over US-China relations

Nearly 70 percent of members of the American Chamber of Commerce in Hong Kong anticipate a deterioration in US-China relations, according to a recent survey conducted by the association. 

The survey, carried out over the past two months, gathered insights from senior corporate members on a range of topics, including Hong Kong’s business outlook, business environment, legal considerations, US-China relations, human resources, and the Greater Bay Area.

The findings reveal that 67 percent of members expect US-China relations to worsen, while 25 percent foresee stability, and only 8 percent are optimistic about improvement. 

Also, 85 percent believe the Hong Kong government can enhance US-Hong Kong relations by prioritizing economic issues over national security.

Confidence in Hong Kong's rule of law has increased by 4 percent compared to last year, with 70 percent of respondents saying their operations have not been negatively impacted by the national security law or ordinance. 

The survey indicates that 48 percent of respondents cite US government policies as the primary influence on Hong Kong's business environment, followed closely by Chinese central government policies at 43 percent and HKSAR government policies at 40 percent. 

Consistent with last year’s findings, 79 percent of respondents do not plan to relocate their headquarters outside of Hong Kong in the next three years.

The survey also revealed "a tone of cautious optimism" among respondents, with 75 percent reporting either stable or increased revenue last year compared to 2023.

"Many attribute Hong Kong’s competitive edge to its robust international connectivity, free flow of capital, low taxation, strategic positioning as a gateway to and from China, effective legal and regulatory framework, and free flow of information and data," the association said.

The survey was distributed to top representatives of over 500 corporations, achieving an 18 percent response rate.

(Henry Siu)