Hong Kong’s role in the Belt and Road: from super-connector to value-adding partner

Policy and institutional framework

With policy supporting in consolidating and enhancing its international status and developing a diversified economy as well as promoting B&R coordination, Hong Kong capitalizes on its sound legal and institutional environment to establish communication mechanisms and information exchange platforms between the Chinese mainland and the international community. These platforms align regulations, planning, standards and policies, fostering connectivity and mutual trust across regions and business communities.

Financial hub

Hong Kong has evolved to a comprehensive financial platform connecting the Chinese mainland and B&R partner countries. It has built a complete value chain across financing, investment and risk management, providing strong support for regional connectivity and sustainable development. As a world-class financial center and offshore renminbi (RMB) hub, Hong Kong provides comprehensive financing channels for B&R projects – from equity financing and bond issuance to asset management. Its mature insurance and reinsurance markets also offer risk protection for large-scale infrastructure projects.

Industry and trade

In 2024, its trade with B&R partner countries surpassed US$300 billion – a nearly 60% increase compared to less than US$200 billion in 2013, showing strong growth momentum¹. Since the launch of the BRI, Hong Kong’s cumulative mergers and acquisitions in partner countries have exceeded US$90 billion, with increasingly close trade and investment ties. Renowned for its robust operations, stringent regulation and high efficiency, Hong Kong’s international shipping and aviation hubs support the flow of goods, data and services along the B&R, facilitating resource allocation and operations across multinational and regional supply chains.

Professional services

Hong Kong brings together top-tier professionals in law, accounting, arbitration, consulting and engineering, offering internationally compliant “one-stop” solutions for complex cross-border projects and providing strong backing for enterprises going global.

Talent and culture

With its unique blend of Eastern and Western cultures and globally minded talent pool, Hong Kong nurtures professionals with cross-cultural and multilingual communication skills for the B&R development, while promoting “people-to-people connectivity” among participating countries.

Hong Kong is leveraging its unique ecosystem strengths to build multi-level cooperation with more B&R partner countries. The Middle East, with its strategic location and energy transition advantages, has emerged as a new global growth engine. In recent years, economic and trade cooperation between Hong Kong and the Middle East has continued to deepen, especially with six Gulf Cooperation Council (GCC) countries.

In 2024, the gross domestic product (GDP) of the GCC countries is projected to reach US$2.2 trillion. Saudi Arabia and the UAE are the two largest economies in the GCC, together accounting for about three quarters of the region’s GDP. All six GCC countries have a per capita GDP exceeding US$20,000, higher than the global average of US$14,000. Qatar has the highest per capita GDP, at approximately US$70,000². The Chinese mainland has long maintained its position as the largest trading partner of the GCC, with its share of trade rising steadily from 7.5% in 2018 to 11.4% in 2023¹. According to MOFCOM, China is actively working to conclude a free trade agreement (FTA) with the GCC. Looking ahead, as cooperation continues to deepen, China-GCC trade is expected to maintain strong growth momentum.

All six GCC member states have signed bilateral tax agreements with the Chinese mainland. The UAE, Saudi Arabia, Kuwait, Qatar and Bahrain have signed bilateral tax agreements with Hong Kong. When investing in GCC countries, Chinese companies must closely monitor the tax systems and ongoing reforms to make decisions that are both compliant and conducive to business growth.

Meanwhile, Hong Kong and Middle Eastern countries, particularly GCC member states focus on key industries, jointly shaping a high-quality and sustainable global investment landscape. In finance industry, Hong Kong has achieved landmark progress in facilitating capital flows between China and Middle Eastern countries, made ongoing innovation and breakthroughs in cross-border financial products, continued institutional cooperation and promotion of strategic investment, and expanded new frontiers in fintech and wealth management cooperation.

In the infrastructure industry, with a surge in demand for both physical infrastructure and digital systems, Hong Kong enterprises are well-equipped to provide tailored solutions through their extensive experience and innovative technologies in transportation and logistics, architectural and design solutions, energy and power, agricultural infrastructure, smart cities, artificial intelligence and other sectors.

Looking ahead, to achieve a strategic upgrade from “super-connector” to “Value-adding partner,” Hong Kong must transform into a core hub that actively aggregates, allocates and enhances global resources. This transformation involves deepening connectivity with the Greater Bay Area, the Middle East, ASEAN, Eurasia and Latin America, while consolidating its leadership in international finance and high-end professional services and strengthening competitiveness in innovation, technology and the digital economy. Key initiatives to support this vision include establishing a Green Technology Board, creating a Cross-Border Green Bond Connect mechanism, building cross-border digital service platforms, promoting mutual recognition of professional service standards, attracting large enterprises to set up captive insurance companies in Hong Kong, launching a B&R Fast-Track Program for enterprise setup, and establishing a B&R Training Center. Through industrial upgrading, institutional optimization and functional enhancement, Hong Kong will become a vital platform for B&R collaboration – effectively linking the Chinese mainland with partner markets and driving high-quality regional economic development.

Summary 

Over the past 12 years, Hong Kong has been deeply engaged in national strategies and has evolved from a participant to a key driver and value creator in advancing the BRI. Across five key areas – policy and regulation, financial services, industrial trade, professional services and talent and culture – Hong Kong has built a mature and diversified ecosystem.