HK can be China-ASEAN trade 'superconnector'

Hong Kong can play a key role in bridging the Association of Southeast Asian Nations (ASEAN) with the Chinese mainland to enhance supply chain resilience amid tariff challenges, said a Hong Kong lawmaker.

"The United States is becoming not a reliable partner … and I think ASEAN countries and China should be working very closely together in terms of reshaping a proper, efficient supply chain," said Sunny Tan, a Legislative Council (LegCo) member of China's Hong Kong Special Administrative Region.

Since the US government announced a series of tariff hikes on its trading partners in early April, Tan said the situation has been constantly evolving, prompting countries and regions to look for a Plan B.

"Hong Kong plays a very important role in this area because Hong Kong has a very unique 'one country, two systems' advantage," said Tan, who is also chairman of the Hong Kong Productivity Council.

Tan spoke to China Daily during the 2025 ASEAN Leadership and Partnership Forum in Kuala Lumpur, Malaysia.

The May 25 event was organized by the ASEAN Economic Club, the ASEAN Business Club, the ASEAN Business Advisory Council, and the KSI Strategic Institute for Asia Pacific. China Daily was a co-organizer.

Tan said Hong Kong can be flexible in catering to the needs of ASEAN countries at different economic development stages and jointly work to develop new supply chains or bring their products into the Chinese mainland market.

According to data from the SAR's Trade and Industry Department, re-export trade between ASEAN and the Chinese mainland through Hong Kong amounted to HK$620.8 million ($79.5 million) in 2024.

This shows that Hong Kong, which has zero tariffs on imported ASEAN goods, is an important entrepot for merchandise trade between the two economies.

Noting that it takes time for a supply chain to be efficient, Tan said it is important for China and ASEAN countries to have better planning with a long-term view to come up with a win-win solution.

"At the same time, Hong Kong will be a very important 'superconnector' as to how we bring the newest generation of technologies, logistics, and professional services to enhance such arrangement," he said.

As a LegCo member representing the textiles and garment sector, Tan said he has been working to encourage businesses in ASEAN's textile industry to take part in a recent immigration program launched by Hong Kong for ASEAN countries.

In March, Hong Kong announced the Immigration Facilitation Scheme for Invited Persons. The scheme provides more convenient immigration arrangements for individuals invited to Hong Kong from ASEAN, promoting economic and trade exchanges, as well as cultural cooperation between the city and the bloc.

With manufacturing being an important economic driver for both ASEAN and the Chinese mainland, Tan said the HKPC is also ready to partner with companies from both regions to boost productivity through technology application.

"Technology is a means that can be applied to so many different industries, especially in the manufacturing sector," said Tan.

Noting China's advances in artificial intelligence and robotics, Tan said the SAR is uniquely positioned to bridge domestic and global markets by leveraging its expertise as an international trading hub.

He said the SAR's strategic role allows it to help these technologies to be internationalized while adapting to the demand of the target market.