APEC members bank on HK's 'superconnector' role in free trade network

Asia-Pacific Economic Cooperation members have banked on the Hong Kong Special Administrative Region's role as the pivotal gateway to the Chinese mainland under the "one country, two systems" policy, with trade between the city and APEC members continuing to surge in the past nearly three decades.

Irina Fan, director of research at the Hong Kong Trade Development Council, credited the city's professional services and supply-chain expertise for enhancing its appeal as a key gateway to the mainland for other APEC members.

"Hong Kong acts as a superconnector and super-value-adder," Fan told China Daily.

Hong Kong joined APEC in 1991. After the city's return to the motherland in 1997, Hong Kong's membership has been maintained under the name "Hong Kong, China", a testimony to Hong Kong's autonomy in external trade and economic matters under "one country, two systems".

This distinct status, allowing Hong Kong to participate in APEC as a separate economy from the Chinese mainland, solidifies its role as a premier two-way facilitator for the world's second-largest economy.

Fan noted that about two-thirds of mainland-related investments were channeled through Hong Kong in 2024.

Official data shows that re-exports of goods through Hong Kong from and to the mainland reached HK$3.78 trillion in 2024, accounting for 84.3 percent of the city's total re-export trade value.

For Hong Kong entrepreneurs, many of APEC's priorities are critical enablers for international growth, such as promoting trade and investment liberalization.

Hong Kong has expanded its free trade network to many APEC members, including Chile, Peru, Australia and New Zealand. In 2017, the city signed free trade and investment agreements with the Association of Southeast Asian Nations, or ASEAN, a move that has benefited seven APEC members — Vietnam, Thailand, Malaysia, Singapore, Indonesia, Brunei and the Philippines.

Kevin To, founder of Hong Kong-based electric vehicle maker One Energy, said his company has an assembly line in Thailand and imports parts from the Chinese mainland. As both the Chinese mainland and Hong Kong have signed free trade agreements with ASEAN, the import and export costs of his products have been significantly reduced.

Fan said that as companies adopt resilient strategies to diversify production, Hong Kong has become a critical hub for this restructuring, especially in the Asia-Pacific region.

The APEC agenda has shaped Hong Kong in many other ways. The city has been a pioneer in developing "Single Window "customs systems, a digital platform that fulfills a 2007 APEC strategy plan by eliminating trade choke points through a single document entry point.

Hong Kong also consistently advocates for the Free Trade Area of the Asia-Pacific, an initiative to integrate the region's patchwork of bilateral deals into a unified trade zone.

Concurrently, the city works to ensure the benefits of economic integration to its micro, small and medium enterprises, another APEC priority. The Hong Kong government has implemented funding programs to help them secure loans and explore new markets, alongside providing business information and technical advice.

This supportive ecosystem is a key advantage for innovators like To, whose startup has benefited from government policies and the resources of the Hong Kong Science and Technology Park.

lilei@chinadailyhk.com