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The Hong Kong government is expecting a deficit of nearly HK$100 billion for the current year, significantly higher than the initial estimate of HK$48.1 billion made last February. The IMF has highlighted the necessity for Hong Kong to enhance its tax revenue to address increasing spending pressures linked to an ageing population. Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of the Asia Global Institute, supports raising revenue either by raising tax rates or by broadening the tax base to address the issue of possible structural fiscal deficits. He highlighted a “mental trap” among government officials who believe that higher taxes would harm productivity, and he pointed out that Singapore’s implementation of a goods and services tax (GST) did not hinder productivity in the medium run. He stated, “Broadening the tax base, especially introducing the sales tax, will be a one-way street,” emphasising the need for sustainable revenue sources as government expenses grow.

Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of the Asia Global Institute, pointed out that many mainland enterprises have sought to raise funds and "go overseas" through Hong Kong in response to the mainland's economic transformation and recent growth slowdown. He emphasised, "Mainland companies adopt a dual-headquarters concept, with many R&D and manufacturing headquarters in the Greater Bay Area, and their foreign trade and fundraising operations based in Hong Kong. This is because Hong Kong's international financial market can facilitate their business expansion."

Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of the Asia Global Institute, commented in a recent media interview that “Hong Kong does not have a solid industrial base, which hinders technology commercialisation.” However, he stressed that creating market demand for technology is vital. Hong Kong must leverage the talent and capital resources, as well as manufacturing and technology capacity in the Guangdong-Hong Kong-Macao Greater Bay Area, to accelerate economies of scale in technology commercialisation. “When there are more strategic enterprises established here, they create high-end technology positions for homegrown and overseas talent in basic science and applied science, thus fostering technology commercialization,” said Prof. Tang.

港大經管學院副院長（對外事務）鄧希煒教授表示，由於地緣政治因素，加上內地本土市場過度競爭，不少當地龍頭企業希望「出海」開拓市場。他舉例，近期來港掛牌的美的集團（00300）及順豐（06936）在內地上市多年，擇此時機在港掛牌，希望作全球部署。他直言，若只在上海或北京設置總部，內地資本管制下，資金較難投資外地，「幾十億資金難以到馬來西亞或越南」；以香港作為地區總部，就可集資及投資外地市場，擴展商業版圖。

Hong Kong's economy is facing a series of significant challenges, including an ongoing fiscal deficit, not being able to fully leverage the composite advantages of the Greater Bay Area, a shrinking middle class, and a drain of international talent.

Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of the Asia Global Institute shared in an interview with the TVB Pearl programme that the trade war has deteriorated with decoupling notably underway in the technology sector like semiconductors, AI and robotics. However, he believes that Hong Kong can still capitalise the opportunities ahead, positioning the city as a centre for supply chain management and professional services such as financial services and tax advisory consulting.

In a recent interview with CNA, Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of the Asia Global Institute, shared that he was not surprised that Trump will raise tariffs on China. As he expected, Trump would increase tariffs on China gradually to gain bargaining power for the U.S. Increasing tariffs is an inefficient measure because they will increase the cost of production and the prices of goods for the U.S. He thinks that the U.S. tariffs on Mexico may not last for too long, as the two governments may agree on a deal soon, given the relatively smaller economic size but much more dependence on exports to the U.S. for Mexico.

With Donald Trump returning to the White House, US-China relations are set to grow more tense. Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of the Asia Global Institute, noted in a HKEJ interview that Trump’s hawkish cabinet may escalate pressure on China in trade, technology, and geopolitics. China must strengthen alliances and boost domestic demand, while Hong Kong needs to uphold its role as a “bridge between East and West.” A Global Shift: “One Globe, Two Systems” Prof. Tang highlighted that the world is entering the “One Globe, Two Systems” era, where the US-led technological ecosystem competes with China’s independent system. Trump’s policies may accelerate decoupling in AI and semiconductors. China must bolster self-reliance, restructure supply chains, and deepen ties with Europe and ASEAN, while Trump’s isolationist stance may weaken US alliances, offering China new opportunities.

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.