Hong Kong Chief Executive John Lee’s recent four-day visit to Zhejiang province demonstrated the city’s commitment to strengthening collaboration with mainland China amid the ongoing US-China trade war. The trip, which took place in late April, was seen as a significant step towards building a broader strategy between Hong Kong and mainland cities to overcome trade obstacles posed by the United States.
During his visit, Lee, accompanied by senior officials and business leaders, met with representatives from Zhejiang’s top tech startups, known as the ‘Hangzhou six little dragons.’ These startups include AI firm DeepSeek, video game developer Game Science, and robotics firms Unitree and Deep Robotics. While few details were released about the discussions, it is understood that the engagement was aimed at understanding how Hong Kong could support these companies in expanding internationally and mitigating disruptions caused by US trade policies.
Key Developments from the Visit
- Hong Kong and Zhejiang agreed to establish a new mechanism providing tailored supply chain services to help mainland companies bypass US trade blockades.
- Lee emphasized Hong Kong’s position as an international trade center and supply chain hub, combined with Zhejiang’s strengths in the digital economy, as a powerful combination to help Chinese businesses diversify away from the US market.
- The two regions signed agreements covering over 50 projects across more than a dozen areas, including technological innovation, trade, and housing.
Expert Insights
“John Lee’s trip to Zhejiang is just the beginning of a more comprehensive plan to strengthen the logistical supply chain between Hong Kong, the Greater Bay Area, and the rest of mainland China,” said Professor Sonny Lo from the University of Hong Kong’s politics department. The partnership is expected to accelerate Hong Kong’s integration with the mainland, aligning with Beijing’s goals for the city.
Experts highlight that Hong Kong can assist Zhejiang enterprises in areas such as financing supply chains and accessing AI chips, particularly those from US tech company Nvidia, which have become increasingly difficult for mainland firms to obtain due to US export controls. Hong Kong’s financial flexibility and fewer trade restrictions make it an easier route for exporting these chips compared to mainland China.
The visit marked a significant step in Hong Kong’s efforts to leverage its unique position as a financial and trade hub to support mainland China’s technological advancements while navigating the complexities of the US-China trade war. As the situation continues to evolve, the collaboration between Hong Kong and Zhejiang is expected to play a crucial role in shaping the regional economic landscape.
