Hong Kong aligns economic development with China's technological growth

Hong Kong is positioning itself to align its development priorities with China’s national ambitions, particularly in emerging technologies like artificial intelligence, as part of its Five-Year Plan for 2026–2030. The city aims to contribute to China’s industrial upgrading and technological innovation while maintaining its status as an international financial and commercial hub.

Under the ‘One Country, Two Systems’ framework, Hong Kong leverages its common-law legal system, freely convertible currency, and international business networks to serve as a gateway for investment between mainland China and the global economy. This approach seeks to make Hong Kong’s distinctive strengths complementary to China’s shift toward higher-value production and economic self-reliance.

Additionally, Hong Kong remains a competitive destination for business due to its two-tiered profits tax system, which applies an 8.25% rate on the first HK$2 million of assessable profits and 16.5% thereafter. The region offers a business-friendly environment with no value-added tax (VAT) and allows for 100% foreign ownership, facilitating access to major Asian markets.