Hong Kong's Secretary for Commerce and Economic Development, Algernon Yau, stated that trade with the Middle East accounts for only 2% of Hong Kong's total merchandise trade, indicating that the Middle East conflict has limited impact on Hong Kong. He expressed confidence that Hong Kong can maintain its trade growth momentum this year. However, Yau noted that rising energy prices have increased shipping costs, which, if passed on to buyers, could weaken demand and put pressure on trade. Additionally, geopolitical uncertainties, global trade unilateralism, and protectionism also pose risks to Hong Kong's overall trade. He highlighted that Hong Kong's exports grew by 33.8% and 24.7% year-on-year in the first two months, reflecting its status as an international trade hub. Yau emphasized that there is room to further deepen trade with ASEAN and Northeast Asia, while actively expanding into emerging markets such as Kazakhstan, Uzbekistan, and Hungary, as well as other economies in Central Asia, Eastern Europe, and Africa. He also revealed that Uzbekistan intends to establish a consulate in Hong Kong to strengthen bilateral relations. Furthermore, Yau indicated that Hong Kong is striving to become a regional intellectual property (IP) trade center. The government is expanding the scale of IP trade and valuation, and consultations on IP tax deductions were completed last month, with legislative amendments expected to be submitted to the Legislative Council within the year.
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