People

In a recent interview with Radio Television Hong Kong (RTHK), Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of Asia Global Institute, provided an in-depth analysis of the implications of Donald Trump winning the US presidential election. He mentioned that Trump advocates for an "America First" policy, and the implementation of high tariffs and trade wars could disrupt global supply chains. However, this might benefit financial markets, as Trump is likely to use monetary policy, particularly interest rate cuts, to stimulate economic growth. Prof. Tang emphasised that while tariffs will undoubtedly impact Chinese exports, the effects may not be as severe as anticipated. He highlighted the conflict Trump faces between inflationary pressures and the desire to lower interest rates. He believes that while Trump will certainly impose tariffs on China, they are unlikely to reach the 60% level he suggests. Furthermore, he indicated that Trump may hesitate to implement a 10% tariff on allies in the short term. Regarding US-China relations, Professor Tang predicts that complete decoupling is unlikely because the US will continue to purchase non-sensitive items from China. He also suggested that Trump's policies could have a mildly positive effect on the global economy and could potentially aid Hong Kong in reclaiming its status as a financial hub.

E-commerce sales in Hong Kong currently represent only 8% of total retail sales, significantly lower than in markets like mainland China, the UK, and South Korea. This suggests substantial growth potential for e-commerce and digital trade in the region. The city should seize future trade trends and focus on digitizing trade by achieving three KPIs: the realization of paperless trade, the development of cross-border e-commerce, and the advancement of digital services trade.

Hong Kong’s economy grapples with several long-standing structural challenges, such as monopolies by large corporations and an over-reliance on the financial sector, which presents a pressing need for economic diversification. Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of the Asia Global Institute, notes that despite the Central Government’s push for multi-industry development, including high-tech advancements and enhancing collaboration with the Greater Bay Area, talent loss due to emigration and a conservative civil service culture are hindering significant breakthroughs. While the government has launched various talent attraction policies, such as the “Top Talent Pass Scheme”, Prof. Tang highlights the need for Hong Kong to attract leading enterprises to the city, which will naturally draw in the skilled professionals required for sustainable growth. As Hong Kong adapts to geopolitical shifts, a two-legged approach is recommended to strengthen its ties beyond the West, extending connections to ASEAN and the Middle East. This involves improving academic research and education related to Islamic culture and finance.

In recent years, Hong Kong's economy has entered a period of uncertainty, with increasing reports of layoffs and business closures. However, while the public's perception of the job market is less than positive, the unemployment rate is kept at a low level. What is happening? The unemployment rate refers to the ratio of the number of unemployed individuals to the total labour force. Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of the Asia Global Institute, explained that the low unemployment rate is largely due to recent emigration, which has decreased both the labour force and the number of unemployed individuals. He highlighted that ongoing business closures are likely to exert upward pressure on the unemployment rate. Many emigrants are skilled professionals, while new arrivals often prioritise settling their families, leading to job mismatches.

China in 2017 laid out an ambitious plan to turn the Greater Bay Area into a high-tech powerhouse, aiming to rival Silicon Valley and Tokyo Bay. With 2035 set as the target, is the region on track to meet those goals, or are there hurdles slowing progress? Professor Heiwai Tang, the director of Asia Global Institute, discussed the prospects and challenges of the Greater Bay Area amid growing geopolitical rivalry in the region.

The gig economy is rapidly growing, raising critical questions for policymakers about balancing workers' rights, business interests, and technological advancement. By 2027, gig workers are expected to make up 51% of the US workforce. Hong Kong faces similar challenges, necessitating improvements in its traditional labour protection system.

The gig economy is rapidly growing, raising critical questions for policymakers about balancing workers' rights, business interests, and technological advancement. By 2027, gig workers are expected to make up 51% of the US workforce. Hong Kong faces similar challenges, necessitating improvements in its traditional labour protection system.

Professor Heiwai Tang was recently interviewed by RTHK on the development of the semiconductor industry in Hong Kong. He mentioned that the development of the semiconductor sector could drive growth in both the upstream and downstream industries.

The 20th Central Committee of the Communist Party of China adopted a resolution on further deepening reform comprehensively to advance Chinese modernization at its third plenary session. In an interview with Southern Finance 南方财经全媒体, Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of Asia Global Institute, believes that the resolution charted a clear course for Hong Kong's development.

HKU Business School recently announced its forecast for Hong Kong's economy in Q3 2024. In an interview with Now News, Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of Asia Global Institute, believes that investment and consumer confidence are key factors for economic recovery. "Affected by the wealth effect, due to the negative conditions in the stock and property markets, the public's investment and consumption confidence is naturally not high. In the long run, it will depend on the government's economic transformation policies over the next three years, which will provide new drivers of economic growth."