Hong Kong’s plan for logistics hub to strengthen its critical role in global trade

Illustration: Xia Qing/GT

Hong Kong will leverage its prime and favorable location and advanced transport infrastructure to build a regional cross-border e-commerce logistics and distribution hub, John Lee Ka-chiu, chief executive of the Hong Kong Special Administrative Region (HKSAR), said at the launch of a consumption promotion campaign for the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) on Saturday. This initiative aligns with Hong Kong's economic strengths and is set to inject new momentum into the growth of the GBA.

Hong Kong possesses a unique combination of advantages: prime and favorable positioning, top-tier logistics infrastructure, advanced digital capabilities, strong policy support, close synergy with other GBA cities and extensive global connectivity. Although Hong Kong's logistics industry faces a complex and challenging global trade landscape in recent years, its unique advantages make it well-suited to serve as a regional logistics hub and further strengthen its critical role in global trade.

As a global center for finance, shipping and trade, Hong Kong connects to nearly 200 destinations worldwide. The city has topped the global ranking for air cargo throughput for more than a decade. Its port infrastructure continues to develop, with a smart port system - the Port Community System project - having been launched earlier this month, according to the HKSAR government's website. This system offers real-time cargo tracking and enhances efficiency, providing a strong foundation for cross-border e-commerce development.

Hong Kong's strengths in finance and digital innovation are also key enablers of logistics modernization. The city is accelerating industrial digital transformation, enhancing digital infrastructure and building a robust data trading ecosystem. Lee emphasized that the GBA will be used as a pilot zone to explore mechanisms for cross-border data flows - an essential step in integrating the digital and real economies.

To support businesses, the HKSAR government is expanding the e-commerce program of the Dedicated Fund on Branding, Upgrading and Domestic Sales to cover more regions. Events and services from the Hong Kong Trade Development Council, including the "Hong Kong Goods Festival" and "E-Commerce Express," are helping local brands increase competitiveness overseas. These efforts benefit not only Hong Kong companies but also other e-commerce players in the GBA.

The GBA, home to more than 86 million people and a GDP exceeding 14 trillion yuan ($1.95 trillion), is one of China's most open and economically vibrant regions. Hong Kong's e-commerce hub initiative will complement neighboring cities' strengths - such as the Hong Kong-Dongguan collaboration on sea-air intermodal transport, with the first phase of the Dongguan Logistics Park set for completion by the end of 2025. This kind of regional cooperation is poised to boost the GBA's logistics efficiency and global competitiveness.

As Belt and Road Initiative (BRI) cooperation continues to advance, Hong Kong - positioned as a vital bridge between Chinese mainland and BRI partners - is poised to seize new development opportunities. By strengthening cooperation with the mainland and BRI partner countries, Hong Kong logistics firms can further expand their business scope and enhance their international competitiveness.

For instance, Hong Kong Customs extended its Free Trade Agreement Transshipment Facilitation Scheme in 2024 to include shipments between the mainland and Vietnam, Nicaragua and Serbia via Hong Kong, reinforcing its position as a vital logistics link.

In recent years, Hong Kong's logistics industry has navigated a complex and evolving landscape. Shifting global trade dynamics and the rise of protectionism have posed significant challenges to the sector. However, there remains strong reason for optimism about its future.

The 2025 Government Work Report emphasized the need to boost the capacity for innovation of economically developed regions like the GBA. With its robust digital trade sector, Hong Kong is poised to seize new opportunities in high-quality development, leveraging its strengths to advance both regional integration and global connectivity.

Hong Kong's efforts to promote digital transformation, enhance infrastructure, facilitate cross-border data flows, and deepen integration of the digital and real economies will play a pivotal role in shaping the future of regional trade.

The author is a reporter with the Global Times. [email protected]