Globalization has transformed the world into an interconnected network, with cities serving as crucial nodes that foster extensive transnational and local cooperation. Consequently, cities are increasingly pivotal in global governance and diplomacy, leveraging their inherent inclusivity and capacity for global engagement. Hong Kong, in particular, functions as a vital bridge between mainland China and the international community. The 20th CPC National Congress report underscores Hong Kong's role in leveraging its strengths to enhance its international standing in finance, trade, shipping, innovation, culture, and tourism, thereby fostering closer global interactions. Hong Kong's city diplomacy is built upon its economic and business environment, cultural richness, educational excellence, and scientific research capabilities, supported by a well-established system of external cooperation that has significantly boosted its global connectivity, strength, and visibility. Currently, Hong Kong's city diplomacy is navigating a new and critical phase, prompting reflection on its future interactive strategies amidst various challenges and risks.

The Practice and Strategy of Hong Kong’s City Diplomacy

Cultural Exchanges: Hong Kong's culture, a dynamic fusion of Chinese (Lingnan Cantonese) roots and Western (British colonial) influences, continues to evolve under the “One country, two systems” framework. This unique blend enables Hong Kong to serve as an “East-meets-West center for international cultural exchange.” The city's cultural promotion strategy actively cultivates international partnerships. A notable example is the 2024 Hong Kong International Cultural Summit organized by the West Kowloon Cultural District Authority (WKCDA), which gathered over 2,000 participants globally and resulted in Memoranda of Understanding (MOUs) with 21 arts and cultural institutions from 11 countries. These MOUs span co-production, touring exhibitions, collection sharing, conservation, digitalization, research, and educational exchanges. Hong Kong also hosts influential events like the International Arts & Collectibles Expo, the Hong Kong Arts Festival, and the Hong Kong International Film Festival. Local NGOs further contribute by fostering international connections and supporting an inclusive domestic atmosphere through collaborations with foreign artists, often backed by embassies.

Economic and Business Environment: Hong Kong’s distinct advantage lies in its extensive connections with mainland China and the world, coupled with a high degree of internationalization. Situated centrally in Asia, it maintains robust trade relations globally and plays a significant role in facilitating trade between China and the United States, with billions in exports and imports routed through the city. Amid heightened China-US tensions, strengthening this gateway role is crucial. Hong Kong's financial markets have demonstrated resilience, with a significant rebound in IPOs in 2023. The city is positioning itself as a leading fintech hub in Asia, ranking 3rd globally and 1st in Asia-Pacific in the 2024 Global Financial Centres Index, and 9th in fintech. The Hong Kong Monetary Authority (HKMA) notes approximately 1000 FinTech firms operating in diverse sectors, benefiting from supportive international jurisdictions, sandboxing environments, and unrestricted capital flow. Startups thrive due to low taxation, a simple tax system, and government funding, fostering innovation and positioning Hong Kong as a key node in the global supply chain, influencing trade and regional negotiations.

Cooperation in Education and Scientific Research: As a globally competitive city, Hong Kong hosts several of Asia Pacific’s top universities. A key policy initiative aims to establish Hong Kong as an international tertiary education hub. This ambition is reflected in global rankings, with four Hong Kong institutions in the top 10 most international universities (Times Higher Education) and five in the top 100 (QS World University Rankings 2025). Approximately 25% of university students in Hong Kong are international, showcasing its success in attracting global talent. The education sector is also well-positioned to support China’s Belt and Road Initiative (BRI) by providing English language educational courses, vocational training, and technical education, thus aiding human resource development and knowledge dissemination along the BRI corridors.

The Challenges of Hong Kong’s City Diplomacy

The Competitive Pressure of Cultural Appeal: Effective urban soft power for international cities involves rich cultural industries, diversity, and respect for minority cultures. While Hong Kong is known for its multiethnic, multicultural fabric and religious freedom, hosting events like the Hong Kong Arts Festival, it faces increasing competition. Notably, Singapore has attracted regional headquarters of multinational firms (4,200 in 2023 vs. Hong Kong's 1,336), including cultural enterprises and media organizations like One Championship, LVMH, and The Wall Street Journal, due to perceptions of a more stable political background and broader market access. Hong Kong's societal sensitivity to political changes necessitates adjustments to its cultural ecology to retain businesses and preserve its cultural values.

The Inconsistencies of City-State Diplomatic Goals in Geopolitics: The rise of “New Cold War” rhetoric and strained China-US relations present new challenges. Historically, Hong Kong has held significant US economic interests, with numerous US citizens and companies present. However, US policy towards Hong Kong has increasingly aligned with its broader China strategy, shifting from “containment+engagement” to “containment+competition.” Hong Kong is now viewed by some in the US as a “front line of containment of China.” Following the implementation of the National Security Law, the US imposed sanctions, such as Executive Order No. 13936 and provisions in the American COMPETES Act of 2022, aiming to weaken Hong Kong's status as an international financial and operations center. The US “decoupling” policy also pressures American businesses to withdraw from Hong Kong.

The Countermeasures of Hong Kong’s City Diplomacy

Create a Differentiated Global Brand on the Basis of Unique Hong Kong Culture: Hong Kong should leverage its unique cultural mix by strengthening its “East meets West” brand. This involves hosting large-scale cultural events, collaborating with international art hubs, and utilizing advanced technologies like AI and VR for cultural promotion, drawing inspiration from models like the Korean Hallyu wave. Protecting and promoting local culture, such as Cantonese opera and tea restaurants, including seeking UNESCO intangible cultural heritage status, is vital. Furthermore, cooperation with other world cities through bilateral cultural exchanges, like an “East Asian Cultural Year” with Tokyo or a “Twin Cities Art Festival” with London, can enhance cultural ties and global influence, fostering a win-win situation rather than direct confrontation.

Expand Diplomatic Channels through Multi-level and Multi-field Cooperation: Amid tense relations between China and Western countries, Hong Kong must flexibly adjust its city diplomacy. It can utilize its role as an international trade and financial center to positively shape Western perceptions by strengthening cooperation in emerging fields like green finance, digital currency, and financial technology. Drawing lessons from Singapore's ability to maintain international status in complex geopolitics could be beneficial. Hong Kong should also expand diplomacy with developing countries in Southeast Asia, Africa, and Latin America through the BRI, offering educational resources, professional training, and financial services. This includes joint university courses with Southeast Asian institutions and cooperation with African and Latin American cities in areas like infrastructure and public health. Finally, Hong Kong should deepen city-to-city diplomacy by strengthening connections with major international and regional hub cities—financial centers like Tokyo and Dubai, cultural cities like Paris and London, and port cities like Rotterdam and Gwadar—to optimize its networks and consolidate its global position.