In the Media

In 2023, AI has generated over 100million songs, and it is estimated AI will take over 50% of the music market by 2030. AI technology has opened up a new era in music creation, allowing anyone to generate music through a few text commands, challenging the music industries. However, the record companies shouldn't reject AI. Instead, they can seek new business models to reshape the industry with AI.

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.

Did you know that blaming others can be just as contagious as a cold? Psychological research has shown that when participants read about political failures, they are more likely to blame others, especially if they see politicians attributing their failures to outside interests. Similarly, when management easily blames employees, it sets a precedent, leading to a culture of blame within the organisation.

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 Trump’s recent victory in the U.S. presidential election, the new administration is set to appoint a fresh slate of department heads. However, the position of Federal Reserve Chair Jerome Powell will remain unchanged. Despite being Trump’s nominee, Powell has often found himself at odds with the President, particularly over interest rate hikes, which Trump has publicly criticized.

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.

Digital platforms help lesser-known cultural workers find their audience by reducing consumers' search costs, allowing products that struggle in traditional markets to enter at lower costs, thereby fostering a more diverse marketplace. However, as traffic becomes increasingly important, operations of digital platforms are becoming more biased. In China's digital arts and entertainment market, the platform's promotion and manipulation can dictate a creative work's success and may even hinder innovation.

Today, in the face of complex environmental, social, and governance challenges, ESG has become a central focus for businesses. In the past, businesses often improved their ESG ratings by following the criteria of various rating agencies. However, with around 600 ESG rating agencies worldwide, each with its own standards, rating inconsistencies are common. This means that even with significant efforts in ESG, companies may still receive varying ratings.

Chen Zhiwu, chair professor of finance at the University of Hong Kong, said the Hong Kong economy would inevitably be hurt as the US was likely to raise tariffs on Chinese goods and toughen policies on technology transfers and tech investments in China. But he said he also expected the new tariffs to be capped at 60 per cent. The former Yale University professor pointed to one of Trump’s biggest supporters, tech billionaire Elon Musk, as a possible taming force in policymaking related to China during Trump’s second term. He also anticipated more aggressive stimulus efforts from Beijing to counter the greater geopolitical uncertainty. “Thus, on balance, this US election outcome may actually be good for Hong Kong, at least to the extent that it makes the leadership in Beijing reprioritise economic development over politics,” Chen said.