Opinion

Foreign firms will boost Hong Kong only if local industries benefit

For a ‘headquarters economy’ to work, foreign corporations must be encouraged to connect with local industry and local talent, and strengthen the local supply chain

Hong Kong’s true competitiveness does not lie in attracting more foreign companies but in building up a strong local economy

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People cross the road in Central on April 11. The government must ensure that incoming enterprises truly benefit the local economy and local talent. Photo: Jelly Tse

John Hanzhang Ye is a PhD student in science and technology history at the University of Minnesota, Twin Cities and also holds an MPhil degree in sociology from the Chinese University of Hong Kong.

Published: 3:30pm, 3 Nov 2023

In his policy address, Chief Executive John Lee Ka-chiu outlined the important task of creating a strong impetus for economic growth in Hong Kong. The measures introduced so far include making the city more attractive to foreign talent and large international corporations, furthering collaboration with mainland China and pledging more support for small and medium-sized enterprises.

With the government largely looking outwards, however, it needs to strengthen the link between incoming enterprises and local industries, helping the latter thrive to maintain a strong local economy. After all, it is easy for large corporations to leave.

Over the past several months, the government has invested in efforts to attract companies to set up their headquarters or regional offices in Hong Kong. This, said Lee, would develop a “headquarters economy” in the city and boost its competitiveness.