If one word could capture the essence of Hong Kong, it would be courage.
Just two years ago, much of the international community wrote off Hong Kong. A widely circulated newspaper commentary was headlined: “It hurts me to say Hong Kong is over”. Although the author later changed his opinion, the piece captured the optimism about the city’s future as the center of the world.
Hong Kong’s fascinating recovery is well documented. According to the Boston Consulting Group, the city has beat Switzerland as the largest cross-border asset management center in the world, with US$2.95 trillion in offshore assets last year. This increase was fueled by the flow of wealth from Mainland China and increased inventories. Hong Kong also rose to second place in the International Institute for Management Development’s global competitiveness rankings, its highest since 2019. These milestones signal not only recovery, but new momentum.
Geopolitical tensions have, in some ways, worked in Hong Kong’s favor. Over the past two years, Chinese companies have increasingly withdrawn from the US list, with many choosing Hong Kong. Anecdotal evidence points to an increasing number of Chinese overseas financial professionals and scholars – Many US-born Chinese or Native Americans – moving to Hong Kong, drawn by its unique position as an East-West bridge.
Now, the city stands at another important moment to raise its international status. This opportunity comes from the summit between Chinese President Xi Jinping and US President Donald Trump in Beijing in May. The meeting set a more positive tone for the relations between the two countries, thus creating an opportunity for rational participation. Hong Kong should take this window to repair and strengthen relations with the United States and its Western partners.
Relations had soured after the national security law of 2020. US sanctions against Hong Kong and mainland officials, including Chief Executive John Lee Ka-chiu, damaged the image of the city and made many foreign leaders, businessmen and tourists hesitate. Although these sanctions had little direct economic impact, they reinforced serious concerns about Hong Kong’s transparency and predictability.
