RESTRICTED  
  
WT/TPR/G/450  
11 October  2023 
(23-6781) Page: 1/22 
Trade Policy Review Body  Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
HONG KONG,CHINA 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex  3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement 
by Hong Kong, China  is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Hong Kong,  China . WT/TPR/G/450 • H ong Kong, China 
 
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  Contents  
1   INTRODUCTION  ................................ ................................ ................................ ..........  4 
1.1   Vision  ................................ ................................ ................................ ......................  4 
2   ECONOMIC  ENVIRONMENT  ................................ ................................ ..........................  4 
2.1   Overview  ................................ ................................ ................................ ..................  4 
2.2   Economic  outlook  ................................ ................................ ................................ ...... 5 
2.3   Fiscal policy  ................................ ................................ ................................ ..............  5 
2.4   Monetary policy  ................................ ................................ ................................ .........  5 
3   TRADE POLICY AND DEVELOPMENTS  ................................ ................................ ..........  6 
3.1   Trade Policy objectives and formulation  ................................ ................................ ........  6 
3.2   Participation in the World Trade Organization ................................ ................................ . 6 
3.3   Participation in other regional and international fora  ................................ .......................  7 
3.3.1   Asia-Pacific economic cooperation  ................................ ................................ .............  7 
3.3.2   Organisation for economic co -operation and development  ................................ .............  7 
3.4   Bilater al and plurilateral trade initiatives  ................................ ................................ ....... 7 
3.4.1   Free trade agreements  ................................ ................................ ............................  7 
3.4.1.1    Mainland and Hong Kong cl oser economic partnership arrangement  ............................  7 
3.4.1.2    HKC–New Zealand closer economic partnership agr eement  ................................ ........  8 
3.4.1.3    HKC–EFTA free trade agreement  ................................ ................................ ............  8 
3.4.1.4    HKC–Chile free trade agreement  ................................ ................................ ............  8 
3.4.1.5    HKSAR and Macao SAR closer economic partnership arrangement  ...............................  8 
3.4.1.6    HKC–ASEAN free trade agreement  ................................ ................................ ..........  9 
3.4.1.7    HKC–Georgia free trade agreement  ................................ ................................ ........  9 
3.4.1.8    HKC–Austral ia free trade agreement  ................................ ................................ ....... 9 
3.4.2   Free trade agreements under negotiation/being pursued  ................................ ..............  9 
3.4.2.1    HKC-Peru free trade agreement  ................................ ................................ .............  9 
3.4.2.2    Regional comprehensive economic partnership agreement  ................................ .........  9 
3.4.3   Investment promotion and protection agreements  ................................ ......................  10 
3.5   Customs and trade facilitation  ................................ ................................ ....................  10 
3.6   COVID -19 support measures  ................................ ................................ ......................  10 
3.7   Competition policy  ................................ ................................ ................................ .... 11 
3.8   Green initiatives  ................................ ................................ ................................ ....... 11 
3.9   Infrastructural developments  ................................ ................................ .....................  12 
4   SUSTAINING LONG -TERM GROWTH AND IMPROVING BUSINESS ENVI RONMENT  ..... 12 
4.1   The 14th five-year plan and the belt and road initiative  ................................ ...................  12 
4.2   Guangdong -Hong Kong -Macao greater bay area  ................................ ............................  13 
4.3   Maintaining a free and open regime for enterprises, investment and talents  ......................  13 
4.4   Small and medium enterprises initiatives  ................................ ................................ ..... 13 
4.5   Financial services  ................................ ................................ ................................ ..... 14 
4.5.1   Securities and futures  ................................ ................................ .............................  14 WT/TPR/G/450 • Hong Kong, China 
 
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  4.5.2   Asset and wealth manageme nt ................................ ................................ ................  15 
4.5.3   Insurance  ................................ ................................ ................................ .............  15 
4.5.4   Offshore Renminbi business  ................................ ................................ ....................  15 
4.5.5   Bond market  ................................ ................................ ................................ .........  15 
4.5.6   Virtual assets  ................................ ................................ ................................ ........  16 
4.5.7   Green  and sustainable finance  ................................ ................................ .................  16 
4.6   Innovation and technology  ................................ ................................ .........................  16 
4.7   Trading, shipping, aviation and logistics services  ................................ ...........................  17 
4.8   Intellectual property trading  ................................ ................................ .......................  18 
4.9   Protection of intellectual property rights  ................................ ................................ ....... 19 
4.9.1   Legislation  ................................ ................................ ................................ ............  19 
4.9.1.1    Patents law  ................................ ................................ ................................ ........  19 
4.9.1.2    Copyr ight law  ................................ ................................ ................................ ..... 19 
4.9.1.3    Trade marks law  ................................ ................................ ................................ . 19 
4.9.1.4    Designs law  ................................ ................................ ................................ ........  19 
4.9.2   Enforcement  ................................ ................................ ................................ .........  20 
4.10   Legal and dispute resolution services  ................................ ................................ .........  20 
4.10.1    Arbitration  ................................ ................................ ................................ ..........  20 
4.10.2    Mediation  ................................ ................................ ................................ ............  21 
4.10.3    Online  dispute resolution  ................................ ................................ .......................  21 
4.11   Tourism, art, cultural and creative industries  ................................ ..............................  21 
4.11.1    Tourism  ................................ ................................ ................................ ..............  21 
4.11.2    Art and culture  ................................ ................................ ................................ .... 21 
4.11.3    Creative industries  ................................ ................................ ...............................  22 
5   CONCLUSION ................................ ................................ ................................ .............  22 
 
  WT/TPR/G/450 • H ong Kong, China 
 
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  1  INTRODUCTION  
1.1.  Hong Kong, China (HKC) is an international centre  for trade, finance, transportation and 
business . HKC offers a business -friendly environment with a fine tradition of the rule of law and 
judicial independence; a simple tax system with low tax rates, an unfettered flow of capital, people, 
goods and inform ation; open and fair competition; a well -established and comprehensive financial 
network; superb transport and communications infrastructure  connecting to the rest of the world ; 
sophisticated  professional and business  support services; and a flexible labou r market with a 
well-educated workforce and a pool of innovative entrepreneurs.  
1.2.  The Basic Law of the Hong Kong Special Administrative Region (HKSAR) provides that the 
HKSAR shall maintain the status of a free port, safeguard the free movement of goods and capital, 
be a separate customs territory, and may, on its own, using the name "Hong Kong, China ", maintain 
and develop relations and conclude and implement agreements with foreign states and regions or 
international organi zations in the appropriate fields,  including but not limited to the economic and 
trade fields, as well as participate in international organi zations and conferences not limited to states. 
This forms the foundation for HKC 's separate membership in the World Trade Organization  (WTO).  
1.3.  Since the last Trade Policy Review in 2018, HKC  has continued to leverage our unique  
advantages under "One Country, Two Systems ", and inject ed new impetus to HKC 's economy. 
Through participa ting i n multilateral, plurilateral , regional  and bilateral trade agreements, 
HKC continues to  maintain and improve access to foreign markets for its goods and services.  
1.4.  The COVID -19 pandemic has plagued the entire world. Having made a concerted and successful 
effort to fight the disease  on all fronts, HKC has returned to normalcy, and the vast majority of those 
support measures under the A nti-epidemic Fund (A EF) has come to an end . The HKSAR Government 
(the Government) is committed to investing for the future to create strong impetus for growth.  
1.1  Vision  
1.5.  Building on the unique advantages under "One Country, Two Systems ", the Government has 
adopted a more proactive approach to enhance HKC 's competitiveness and to drive economic 
development, integrating a capable government and an efficient market. Having direct access to  
Mainland  China  market and strong internationa l connectivity , HKC acts as a bridge linking 
Mainland  China  and the rest of the world.  The Government is actively pursu ing policies to reinforce 
our strategic position as an international financial, trade, transportation centre as well as promote 
innovation and technology (I&T) development, international cultural exchange, legal and dispute 
resolution services, and intellectual property (IP) trading. A clear strategic direction contributing 
to HKC's high quality development is to enhance the city's I&T ecosystem, enlarg e the pool of  I&T 
talents, develop  HKC into a smart city , promote digital economy and drive forward  green transition 
and green technology. With a view to propelling HKC's longer -term growth, the Government will 
endeavour to build capacity for economic development through creating new land expeditiousl y, 
increasing infrastructure investment , showcasing our cultural development and creative industries  
and competing for global enterprises and talents.  
2  ECONOMIC  ENVIRONMENT  
2.1  Overview  
2.1.  HKC is one of the freest economies in the Fraser Institute's annual report on Economic Freedom 
of the World . HKC was also ranked first for economic openness in Global Index of Economic 
Openness  2019 by UK -based Legatum Institute, as well as seventh globally and third in Asia-Pacific 
for competitiveness in World Competitiveness Yearbook 2023  by the International Institute for 
Management Development (IMD) . 
2.2.  HKC is  a leading trade and financial cent re in the world . In 2022, HKC  was ranked tenth in the 
world in terms of merchandise trade.  HKC's merchandise trade to GDP ratio was 336% in 2022. As 
at the end of t he same year , HKC was the world 's sixth largest banking centre in terms of external 
positions, an d had the sixth largest stock market in the world  by market capitali zation. HKC was  
also the fourth largest foreign exchange  centre in terms of turnover according to a triennial survey WT/TPR/G/450 • Hong Kong, China 
 
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  conducted by the Bank for International Settlements in 2022.  HKC was ranked the fourth and 
seventh in the world in terms of foreign direct investment inflows and outflows respectively in  2022.  
2.3.  Led by inbound tourism and private consumption, the HKC economy improved visibly in the 
first quarter of 2023, and continued to  recover in the second quarter, with real GDP growing by  2.9% 
and 1.5% year -on-year respectively.  
2.4.  As at July 2023 , HKC's long -term credit ratings are  "AA+" by S&P, "Aa3" by Moody 's, 
and "AA-" by Fitch.  
2.2  Economic  outlook  
2.5.   Inbound tourism and private consumption will continue to be the main drivers of 
HKC's economic growth in the rest of 2023. As transportation and handling capacity continue to 
recover, visitor arrivals should increase further. The improving economic situati on and prospects 
should bode well for domestic demand, though tight financial conditions may impose constraints. 
Improved labour market conditions and the Government 's efforts in boosting the momentum of the 
recovery will provide additional support to private consumption growth.  Yet, the difficult global 
economic environment will continue to weigh on HKC's exports of goods. Taking into account the 
actual outturn in the first half of 2023 and the factors mentioned above, the real GDP growth 
for 2023 as a who le is forecast  at 4.0% -5.0%.  
2.3  Fiscal policy  
2.6.  In 2022, HKC 's economy was plagued by the epidemic. The sharp tightening of monetary 
policies by central banks across the globe has significantly weakened the external economic 
momentum with adverse impact on the local economy. As a result, there was a fiscal deficit 
of HKD 122 billion (US D 16 billion) for the 2022 -23 financial year, mainly attributable to reduced 
revenue amid st economic downturn and increased expenditure for launching of a number of 
anti-epidemic and counter -cyclical measures to support the public and business operations in light 
of the epidemic and economic situations in 2022. As at March 2023 , the Government 's accumulat ed 
fiscal reserve s was  HKD 835 billion (US D 107 billion ). 
2.7.  The 2023 -24 Budget took a "moderately liberal " fiscal stance, supporting people in need and 
sustain ing the impetus to economic recovery in moving tow ards high -quality development. Despite 
the adversities encountered in the past few years, HKC 's public finances have remained robust. It is 
projected in the medium range forecast for the five -year period ending 2027 -28 that , when the 
epidemic has subsided and the economy is back on track, there  will be fiscal surpluses in four 
consecutive years starting from 2024 -25, and accumulated fiscal reserves will gradually rebound to 
HKD 984 billion (US D 126 billion), representing 25.6% of GDP and approximately 14  months of 
government expenditure.  
2.8.  The Government has constitutional responsibility to follow the principle of keeping expenditure 
within the limits of revenue in drawing up its budget, and striving to achieve a fiscal balance, avoid ing 
deficits and keeping the budget commensurate with the growth rate of its GDP . Taking previous 
financial position in times of adversity as a reference, it is considered that the fiscal reserves are 
currently maintained at a prudent level.  
2.4  Monetary policy  
2.9.  The monetary policy objective of HKC is currency stability, defined as a stable external 
exchange value of the currency of HKC, in terms of its exchange rate in the foreig n exchange market 
against the US dollar, at around HK D 7.80 to US D 1. A credible fixe d-exchange rate system helps 
minimize the exchange rate risk, benefiting externally -oriented businesses. A stable 
Hong Kong dollar  is also an important anchor for financial stability, which underpins HKC 's position 
as an international financial centre.  
2.10.  The structure of the monetary system is characteri zed by currency board arrangements, 
requiring the Hong Kong dollar monetary base to be at least 100% backed by, and changes in it to 
be 100% matched  by corresponding changes in, US  dollar reserves held by the Exchange Fund at 
the fixed -exchange rate of HK D 7.80 to US D 1. WT/TPR/G/450 • H ong Kong, China 
 
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  3  TRADE  POLICY AND  DEVELOPMENTS  
3.1  Trade Policy objectives  and formulation  
3.1.  As a small and open economy, HKC's trade policy objectives are to promote a free, open and 
stable multilateral trading syst em; to safeguard our rights and fulfil our obligations under 
multilateral, plurilateral, regional and bilateral trade and trade -related agreements and 
arrangements; and to secure, maintain and improve access for our exports.  
3.2.  As a free port, HKC has continu ed to maintain a free and open trade regime amidst 
the COVID -19 pandemic . No restrictive measures were imposed on the import and export of goods, 
including essential medical supplies. Two  temporary trade measures  were put in place,  viz. a 
restriction on ex port of face masks produced using government subsidies during the 12 -month 
subsidi zed period , and a suspension of commercial imports of live rodents and lagomorphs . Both  
measures have  come to an end.  
3.2  Participation in the World Trade Organization  
3.3.  Being a founding Member and a staunch supporter of the WTO, HKC is committed to supporting 
the multilateral trading system with the WTO at its core. HKC participates in the WTO  to pursue 
two key objectives, i.e.  to foster progressive global tr ade liberali zation and to strengthen the rules 
of the multilateral trading system so as to provide an effective framework for protection against any 
arbitrary and discriminatory actions by our trading partners. HKC believes that the rules -based 
system embo died in the WTO and its dispute settlement mechanism can provide the most effective 
safeguard against trade conflicts and protectionism.  
3.4.  HKC welcomes the significant outcomes achieved at the Twelfth Ministerial Conference  (MC12) 
held in June  2022, includin g the adoption of the Agreement on Fisheries Subsidies, and the extension 
of the current practice of not imposing customs duties on electronic transmissions (the Moratorium). 
HKC accepted the Agreement on Fisheries Subsidies  on 21 August 2023 , and is ready  to fully 
implement all provisions therein . HKC will continue to participate constructively in the WTO fisheries 
subsidies negotiations. HKC supports maintaining the Moratorium as it is an important pillar in 
maintaining a stable, predictable and conducive  e-commerce environment in the past quarter 
century. HKC will continue to engage constructively in the discussions to reinvigorate the Work 
Programme on Electronic Commerce as mandated by the MC12 Ministerial Decision. HKC will also 
continue to participate  actively in the discussions with a view to having a fully and well -functioning 
dispute settlement system by 2024.  
3.5.  HKC also participates  actively in plurilateral discussions  conducted under  respective Joint 
Statement Initiatives (JSIs) , namely the Services  Domestic Regulation (DR) , E-commerce, 
Investment Facilitation for Development  (IFD),  and Micro, Small and Medium -sized 
Enterprises  (MSMEs) since the Elevent h Ministerial Conference (MC11) held in December 2017 . For 
the JSI  on Services DR, HKC welcomes the  successful conclusion of the discussions  
in December  2021 and is  one of the first batch of p articipants  to initiate certification procedures 
in December  2022 to give legal effect to the negotiated outcome. HKC will continu e to work with 
fellow participants with a view to completing the relevant procedures and bringing the benefits of 
this new set of quality DR  disciplines to all WTO Members on a most -favoured -nation basis. For the 
JSI on E -commerce, HKC  is an active partici pant in the negotiations and will continue to collaborate 
with other p articipants to push forward the negotiations with the goal of developing new, 
high-standard  trade rules to reduce barriers to digital trade and create a more faci litating 
e-commerce envi ronment. For the JSI on  IFD, HKC co -sponsored two Joint Statements 
in November  2019 and December  2021 respectively, reaffirming the shared objective of 
participating WTO Members to facilitate foreign direct investment. HKC will continue to fully support 
and participate in the related negotiations.  
3.6.  HKC considers that initiatives at the multilateral or plurilateral level will complement our 
existing support measures for MSMEs  at domestic level , facilitate our MSMEs to further their 
business es and enhance their participation in international trade . HKC participated in the Informal 
Working Group on MSMEs to explore ways in which WTO Members could better support 
MSMEs ' participation in global trade , and will continue to contribute to the Informal  Working 
Group 's discussions of proposals and exploration of possible means to carry out the agreed mandate.  WT/TPR/G/450 • Hong Kong, China 
 
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  3.7.  On trade and environment, a part from participating in the Committee on Trade and 
Environment, HKC has been taking part in the plurilateral discussions on trade and environmental 
issues which seek to complement multilateral efforts, and co -sponsored the Ministerial Statements 
on the Trade and Environmental Sustainability Structured Discussions, and the Dialogue on Plastics 
Pollution and Environmentally Sustainable Plastics Trade in December 2021.  
3.3  Participation in other regional and international fora 
3.3.1   Asia-Pacific economic cooperation  
3.8.  HKC continues to play an active role in the Asia -Pacific Economic Cooperation (AP EC) and 
contribute to its work including active ly participati ng in the activities under the APEC Committee on 
Trade and Investment (CTI), in particular to advance towards the realization of the Free Trade Area 
of the Asia -Pacific (FTAA P) in a comprehensive and systematic manner, as well as to promote 
sustainable and inclusive trade; undertaking collective commitments to enhancing resilient supply 
chains and reducing barriers to  trade, in particular in support of the movement of COVID -19 vaccines 
and essential goods, amidst the COVID -19 pandemic;  and advocating  for opening up and facilitating 
trade in environmental goods and services.  
3.3.2   Organisation for economic co-operation and development  
3.9.  HKC has been a participant to the Trade Committee and the Committee on Financial Markets 
of the Organisation for Economic Co -operation and Development (OECD) since 1994 and  1995 
respectively. HKC has also  been regularly particip ating in the Trade Session of the annual 
OECD  Minister ial Council Meeting since 2009.  
3.4  Bilater al and plurilateral trade initiatives  
3.4.1   Free trade agreements  
3.10.  HKC has been actively seeking to expand its worldwide network of economic and trade 
connections through , among st others, forging free trade agreements (FTAs). So far, HKC has signed 
eight FTAs with 20 economies , viz. Mainland China ; New  Zealand ; the four Member States of the 
Europea n Free Trade Association (EFTA); Chile;  Macao,  China ; the 10 Member States of the 
Association of S outheast Asian Nations (ASEAN); Georgia ; and Australia.  Amongst them, the FTAs 
with ASEAN, Georgia and Australia as well as two subsidiary agreements both with Mainland China 
entered into force during the review period . HKC is open towards forging new FTAs with our trading 
partners. HKC is  now negotiating an FTA with Peru and actively seeking to join the Regional 
Comprehensive Economic Partnership (RCEP).  Details of these FTAs are set out in ensuing 
paragraphs 3.11 to 3 .27. 
3.4.1.1   Mainland and Hong Kong closer economic partnership arrangement  
3.11.  Mainland  China and HKC  signed the "Mainland and Hong Kong Closer Economic Partnership 
Arrangement " (CEPA) on 29 June 2003. CEPA is the first FTA concluded by HKC, which entered 
into force on 1 January 2004. It adopts a building block approach to expand its scope and content 
for achieving progressive liberali zation and facilitation of trade and investme nt. CEPA covers 
four broad areas, namely:  
(a) trade in goods – all products of HKC origin (as per the CEPA rules of origin) can enjoy 
tariff-free treatment on importation into Mainland China. The two sides agreed not to 
apply tariff rate quotas, anti -dumping m easures and countervailing measures to goods 
imported and originated from each other. In addition, the "Agreement on Trade in Goods ", 
implemented since 2019, has dedicated chapters on "Customs Procedures and Trade 
Facilitation ", "Sanitary and Phytosanitary  Measures " and "Technical Barriers to Trade " to 
include trade facilitation measures, enhance transparency and strengthen co -operation in 
the relevant areas. It also has a dedicated chapter on "Trade Facilitation Measures in the 
Guangdong -Hong Kong -Macao Gr eater Bay Area " to include trade facilitation measures 
for the nine Pearl River Delta municipalities (namely Guangzhou, Shenzhen, Zhuhai, 
Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen and Zhaoqing) and HKC.  WT/TPR/G/450 • H ong Kong, China 
 
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  (b) trade in services – the two sides have basically achieved liberali zation of trade in services. 
Mainland China has fully or partially opened up 153 services trade sectors to 
HKC's services industry, accounting for 95.6% of all the 160 WTO services trade sectors. 
Furthermore, the "Agreement concerning Amendment to the CEPA Agreement on Trade 
in Services ", implemented since June 2020, introduces new liberali zation measures in a 
number of service s sectors such as financial services, legal services, and construction and 
related en gineering services, making it easier for HKC enterprises and professionals to 
develop businesses in Mainland China.  
(c) investment – the two sides are committed to providing for investment protection and 
facilitation, and expand ing market access commitments to  non-services sectors.  
(d) economic and technical co -operation – the two sides have agreed to enhance co -operation 
in various areas with a view to catering for and supporting the development between the 
two places . 
3.12.  The two sides will continue to enrich the con tent of CEPA to achieve further liberali zation and 
facilitation of trade and investment between them.  
3.4.1.2   HKC–New Zealand  closer economic partnership agreement  
3.13.  The HKC–New Zealand  Closer Economic Partnership Agreement (CEP Agreement) entered into 
force on 1  January  2011. This Agreement is HKC's first FTA signed with a foreign economy.  
3.14.  A Joint Commission  has been established to oversee the implementation of the 
CEP Agreement . At its fourth meeting held in May 2022, the Joint Commission concurred that the 
CEP Agreement had been implemented smoothly and effectively, providing better market access and 
certainty to businesses of both sides through total elimination of tariffs on trade in  goods and broad 
trade in services liberali zation commitments in various sectors . Three implementing arrangements 
were signed at the meeting to facilitate the ongoing co -operation and communication in the areas 
of rules of origin, sanitary and phytosanitar y measures , and government procurement.  
3.4.1.3   HKC–EFTA free trade agreement  
3.15.  HKC and the EFTA States signed an FTA on 21 June 2011. The part of the FTA between  HKC, 
Iceland, Liechtenstein and Switzerland entered into force on 1 October 2012; whereas that 
between  HKC and Norway entered into force on 1 November 2012.  
3.16.  The first  meeting of the Joint Committee established under the FTA between HKC and the 
EFTA States was held in October 2017. The Joint Committee welcomed the smooth and effective 
implementation of the F TA, and all the decisions adopted in the first Joint Committee meeting have 
entered into force.  
3.4.1.4   HKC–Chile free trade agreement  
3.17.  The HKC-Chile FTA entered into force on 9 October 2014. The two sides also signed a 
comprehensive investment agreement on 18 November 2016, which entered into force 
on 14 July 2019.  
3.18.  HKC and Chile signed an exchange of notes on 18 January  2022 to broaden and deepen their 
respective commitments  on trade in services under the FTA. The updated commitments entered 
into force on 6 April 2023, providing for more open and liberali zed treatment in a range  of 
service s sectors . 
3.4.1.5   HKSAR  and Macao SAR closer economic partnership arrangement  
3.19.  The HKSAR and Macao SAR Closer Economic Partnership Arrangement (HK -Macao  CEPA) 
entered int o force on 27 October 2017 and the liberali zation of trade in goods and services provided 
for therein was implemented on 1 January 2018.  WT/TPR/G/450 • Hong Kong, China 
 
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  3.20.  The HK -Macao CEPA is comprehensive in scope, covering trade in goods, trade in services, 
investment, intellectual prope rty, and economic and technical co -operation, among st others. Apart 
from providing legal certainty on tariff -free movement of goods between the two separate customs 
territories, the two sides also agreed  not to apply tariff rate quotas against goods of eac h other. On 
trade in services, market access commitments are complemented with disciplines on domestic 
regulation to ensure that they do not constitute unnecessary barriers to trade.  
3.4.1.6   HKC–ASEAN free trade agreement  
3.21.  The HKC-ASEAN FTA entered  into force  in full  on 12 February 2021 . The FTA is comprehensive 
in scope, encompassing trade in goods and related issues, trade in services, economic and technical 
co-operation, and dispute settlement mechanism . An Investment Agreement was also forged 
alongside  the FTA. The Joint Committee established under the FTA held two meetings in  2019 
and 2021 to ensure the smooth and effective implementation of the agreements. The  Ministers and  
Senior Officials of both sides have been maintaining close contact, including thro ugh regular 
meetings, to discuss areas for further co -operation.  
3.4.1.7   HKC–Georgia free trade agreement  
3.22.  The HKC-Georgia FTA was signed on 28 June 2018 and entered into force 
on 13 February  2019.  
3.23.  The FT A is comprehensive in scope, encompassing trade in goods and related issues, trade in 
services, investment (establishment), dispute settlement mechanism, and also contains provisions 
to ensure effective protection of intellectual property rights, promote competition, and enhance 
protection of the environment.  
3.4.1.8   HKC–Australia free trade agreement  
3.24.  HKC and Australia signed an FTA and a related investment agreement on 26  March  2019. 
Both agreements entered into force on 17 January 2020. The agreements cover trade in goods, 
trade in services, investment, government procurement, intellectual property, competition, dispute 
settlement mechanism and other related areas. Apart from eliminating all tariffs on goods originating 
from each other, both sides have made various improved commitments covering a wide ran ge of 
sectors for trade in services under the FTA.  
3.25.  The first  meeting of the Joint Commission established under the FTA was held 
on 29 June 2022. Both HKC and Australia acknowledged the effective implementation of the FTA and 
agreed to deepen co -operation b etween the two places . 
3.4.2   Free trade agreement s under negotiation /being pursued  
3.4.2.1   HKC-Peru free trade agreement  
3.26.  HKC commenced FTA negotiations with Peru in January 2023. The scope of the proposed 
FTA include s trade in goods and related issues, trade in services , investment, electronic commerce, 
government procurement, intellectual property, competition and dispute settlement mechanism. 
Both sides aim to achieve a high -quality and comprehensive FTA to foster closer economic 
partnership.  
3.4.2.2   Regional comprehens ive economic partnership agreement  
3.27.  RCEP was signed among st the 10 ASEAN Member States  and five of their  FTA partners 
(viz. Australia, Mainland China, Japan, the Republic of Korea  and New  Zealand ) in November  2020. 
Being an international trade centre with merchandise trade with the RCEP member economies 
constituting over 70% of HKC's total merchandise trade, HKC is actively seeking early accession to 
the RCEP in order to pursue further trade liberalization. HKC has  submitted its formal accession 
request in the same month  when the RCEP entered into force on  1 January 2022 . WT/TPR/G/450 • H ong Kong, China 
 
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  3.4.3   Investment promotion and protection agreements  
3.28.  HKC has been negotiating and concluding Investment Promotion and Protection 
Agreements  (IPPAs) with foreign economies to provide additional assurance to foreign investors for 
their investments in HKC, and at the same time to secure additional protection for HKC investors in 
respect of their investments overseas.  
3.29.  As at April 2023, HKC  has forged 22 IPPAs with 31 foreign economies, viz. the 10 ASEAN 
Member States, Australia, Austria, Belgium, Canada, Chile, Denmark, Finland, France, Germany, 
Italy, Japan, the Republic of Korea , the State  of Kuwait , Luxembourg, Mexico, the Netherlands, 
New Zealand , Sweden, Switzerland, the United  Arab Emirates  and the United  Kingdom . All these 
IPPAs have entered into  force.  
3.5  Customs and trade facilitation  
3.30.  HKC is one of the top performers in the area of trade facilitation according to the OECD  Trade 
Facilitation Indicators published in March 2023. In particular, HKC achieved the best performance 
amongst the sampled economies in the areas of information availability, advance rulings, 
harmoni zation and simplification of trade -related documents, a utomation tools, as well as 
governance and impartiality.  
3.31.  Notwithstanding that HKC's customs procedures are recogni zed as amongst the easiest and 
fastest in the world, HKC is committed to striving for further enhancements to its already liberal and 
highly -efficient regulatory regime.  
3.32.  For cargo transported by air, the Air Cargo Clearance System (ACCS) enables carriers to 
submit advance cargo information electronically to the Customs and Excise Department (C&ED) at 
least one hour before the arrival of the airc raft; in normal circumstances, clearance can be completed 
before the arrival of the aircraft. The system also enables carriers to submit advance cargo 
information electronically under the Sea -air Cargo Transhipment Pilot Scheme since the end -2021.  
3.33.  As at en d-August 2023, the C&ED has accredited 81 local companies as Authorized Economic 
Operat ors (AEOs), representing an increase of 84% as compared to May 2018, for enjoying customs 
facilitation, such as reduced inspection and prioriti zed clearance of cargoes a t control points. The 
C&ED has also entered into Mutual Recognition Arrangements (MRAs) on AEO programmes  with the 
customs administrations of Mainland China, Australia, Canada, India, Indonesia, Israel, Japan, 
the Republic  of Korea , Malaysia, Mexico, New  Zealand , Singapore and Thailand respectively. 
Accredited companies enjoy customs facilitation in those economies. Currently, the C&ED is holding 
MRA discussions with Kingdom of Bahrain , Macao,  China and the Philippines.  
3.34.  HKC is committed to esta blishing the Trade Single Window (TSW) in three phases to provide 
a one -stop platform for lodging Business -to-Government trade documents for trade declaration and 
cargo clearance. Phase 1 has been fully implemented and provided e -services for 14 types of t rade 
document. Phase 2 will extend the platform to cover another 28 types of trade document and is 
being rolled out progressively starting from 15 May 2023;  so far 17 types of trade document have 
been launched and 11 will be rolled out shortly by batch. Th e Government is in the process of 
engaging a contractor to develop and implement the information technology system of Phase  3 (the 
final phase). It is expected that Phase 3 will be rolled out by batch from early -2026 with a view to 
fully implementing the T SW by 2027.  
3.35.  To facilitate Customs clearance, the C&ED launched the Single E -lock Scheme under the 
Intermodal Transhipment Facilitation Scheme (ITFS) with Mainland China Customs in March  2016 to 
facilitate the  passage of inter -modal transhipment cargoes. Un der the ITFS, a "green lane " is set up 
to facilitate  logistics flow through seamless  clearance  service . Aided by electronic locks with Global 
Navigation Satellite System, the same consignment will only be inspected once at the point of entry 
or exit , which  helps streamline the clearance process and expedite the flow of transhipment cargoes.  
3.6  COVID -19 support measures  
3.36.  In face of the onslaught of COVID -19 pandemic, HKC has taken vigilant anti -epidemic 
measures to contain the public health risk. Having regard to the negative impact of these measures WT/TPR/G/450 • Hong Kong, China 
 
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  on the livelihood of individuals and business operations, the Government has set up the AEF in  2019 
to provide suitable and temporary relief to busi nesses and individuals hard hit by the COVID -19 
pandemic or by the anti -epidemic measures, and to enhance HKC's overall capability in combating 
the COVID -19 pandemic.  
3.37.  To help businesses, especially small and medium enterprises (SMEs), to weather the 
COVID -19 pandemic, a total of HK D 250.9 billion (US D 32.2 billion) were injected into 
the AEF between 2020 and 2023, funding over 230 temporary support and relief measures. 
The AEF measures cover various sectors including travel, convention and exhibition, arts and 
culture, I&T, passenger transport, aviation and hotel, etc. which were hit hard by the pandemic, and 
provide support to a wide spectrum of employees and needy groups, including SMEs, whose vitality 
and business performance are of crucial importance to the development of HKC's economy. These 
temporary measures have proved to be much needed, and have helped stabili ze the economy and 
retain ed business ' reserve so as to embrace opportunities on our path to recovery . Majority of these 
support measures have c ome to an end as the COVID -19 pandemic no longer constitutes a major 
public health concern in both the international and local settings . 
3.7  Competition policy  
3.38.  A free and competitive market is the backbone of HKC's economy. HKC is committed to 
promoting sustai nable competition to enhance economic efficiency and free flow of trade, thereby 
bringing benefits to both consumers and businesses.  
3.39.  The Competition Commission, established under the Competition Ordinance (Chapter  619 of 
the Laws of Hong Kong) (CO), is an independent statutory body which enforces the CO and 
investigates possible contraventions, promotes public understanding of the CO, conducts market 
studies and advises the Government on competition matters. The Competition Tribunal, also 
established under the CO, is tasked to hear and adjudicate alleged breaches of the competition rules.  
3.40.  As at end -March 2023, the Competition Commission has processed over 5 ,800 cases, 
brought  13 cases to the Competition Tribunal, covering cases related to the First Conduct R ule and 
Second Conduct Rule, and  issued and renewed a block exemption order for liner shipping.  
3.41.  Apart from litigation and enforcement  actions, the Competition Commission has also been 
stepping up efforts in engagement and outreach as well as advocacy work with the aim of promoting 
public understanding of the value of competition and how the CO promotes competition. For 
example, the Competition Commission launched in September 2022 HKC's first TV docudrama series 
on competition law cases to deepen public's u nderstanding of the CO as well as the 
Commission's  work.  
3.8  Green initiatives  
3.42.  Green initiatives improve the living environment for residents and make HKC  a coveted 
destination for enterprises and talents. The Government would strive to achieve carbon neutrality 
before  2050. By harnessing technological innovation, finance, commerce and manpower, 
development of green economy can also drive economic transform ation and sustainable 
development, generate demand and create strong impetus for growth. As a leader and a first -mover 
in green finance and innovation, HKC has the edge to establish itself as an international green 
technology and financial centre.  
3.43.  The Gove rnment has set up a Green Tech Fund to provide better and more focused funding 
support for research and development projects that can help HKC decarboni ze and enhance 
environmental protection. HK D 400 million  (USD 51 million ) has been allocated to the Fund . 
3.44.  The Green  Technology and Finance Development Committee  was established in June  2023, 
gathering leaders from finance, technology, academic, professional services sectors, etc., as well as 
representatives from the Government, financial regulators and publi c organi zations, to assist in the 
formulation of an action agenda for promoting the development of HKC into an international green 
technology and financ ial centre . The Government also plans to organi ze an International GreenTech 
Week at the end of 2023 to bring together representatives, enterprises and investors from the green 
technology industries around the world.  WT/TPR/G/450 • H ong Kong, China 
 
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  3.9  Infrastructural developments  
3.45.  To increase  development capacity, the Government will continue to take forward 
infrastructural developments, inclu ding the Northern Metropolis which will emerge as a "new 
international I&T city " that integrates quality life, new economies, and culture and leisure to promote 
home‑job balance, green living and achieve the co ‑existence of development and conservation . It 
will become the foothold for HKC 's strategic development as well as the new engine for HKC to scale 
new heights.  In order to meet the housing and other community needs and support the sustainable 
development of HKC in the medium to long -term, the Government is now taking forward the 
development of Kau Yi Chau (KYC), which will form 1 ,000 hectares of land by reclamation.  The 
development includ es a third Central Business District (CBD3)  which will expand the scope and 
capacity of HKC 's develo pment and enhance HKC 's competitiveness as a financial, commercial and 
trade centre as wel l as a node for legal services. With the proposed strategic transport 
infrastructures,  KYC will connect Central and the Northern Metropolis, establishing a new indust ry 
pattern of "South -North  dual engine  (finan ce-innovation  and technology) ". It will also 
reinforce  Lantau 's edge as "Double Gateway " to the world  and other cities  in the 
Guangdong -Hong Kong-Macao Greater Bay Area (Greater Bay Area) , and further refine  HKC's overall 
transp ortation network. The development of KYC will adopt  a Smart, Green and Resilient city 
strategy to ensure that the development on the islands could, in the long -term, adapt to climate 
change and facilitate HKC to achieve the carbon neutrali ty target before 2050.  
3.46.  A highly inter ‑connected and accessible road network and rail system will also vigorously drive 
and support future development of HKC . Apart from the transport infrastructure projects that are 
underway , three major road projects and three strategic railway projects recommended in the 
Strategic Studies on Railways and Major Roads beyond 2030 will be taken forward. These projects 
will promote connectivity, accessibility and capacity of our world -class transport infrastructure to 
support  the lon g-term development of HKC.  
4  SUSTAINING  LONG -TERM GROWTH AND IMPROVING BUSINESS ENVIRONMENT  
4.1.  On top of being a free port, HKC also maintains one of the most liberal regime for trade in 
services in the world . Most service s sectors are free and open, and foreign  service providers normally 
enjoy national treatment . Where applicable, licensing and qualification requirements are maintained 
for legitimate policy objectives or prudential reasons, and are implemented in an objecti ve and 
impartial manner.  
4.1  The 14th five-year plan and the belt and road initiative  
4.2.  Mainland China has long been HKC's largest trading partner. Mainland China is also the 
world's  second largest economy, providing enormous opportunities not just for businesse s in HKC 
but also those in other parts of the world. It is a vital engine for sustainable growth for the global 
economy. HKC is committed to making use of its unique advantages under "One Country, 
Two Systems " and its strategic location of being closely co nnected to Mainland China and the rest 
of the world to drive further development.  
4.3.  HKC will leverage the 14th Five-Year Plan for National Economic and Social Development of the 
People's Republic of China and the Long -Range Objectives Through the Year 2035 (the 14th Five-Year 
Plan) to reinforce its competitive advantages for the continuous development of its four traditional 
centres1 and four emerging sectors2, capitali zing on HKC's unique strengths under "One  Country, 
Two Systems", and a highly marke t-oriented and internationali zed business environment that is 
underpinned by the rule of law. The 14th Five -Year Plan also supports HKC in fostering exchanges 
and co -operation with countries and regions around the world.  
4.4.  Pursuant to the signing of the Arra ngement between the National Development and Reform 
Commission of Mainland  China  and the Government of the Hong Kong Special Administrative Region 
for Advancing Hong Kong 's Full Participation in and Contribution to the Belt and Road Initiative  (the 
Arrange ment)  in December 2017,  HKC has been making earnest efforts in implementing measures 
 
1 Namely , international financial centre, international transportation centre, international trade centre, 
and a centre for international legal and dispute resolution services in the Asia -Pacific region . 
2 Namely , international innovation and technology hub, intern ational aviation hub, regional intellectual 
property trading hub, and East -meets -West centre for international cultural exchange . WT/TPR/G/450 • Hong Kong, China 
 
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  set out in the Arrangement to give full play to HKC's role as the functional platform for the Belt and 
Road Initiative  (B&RI) .3 In addition, HKC signed a Memorandum of Un derstanding with the Ministry 
of Commerce of Mainland China in September 2021 on enhancing co -operation in promoting 
high-quality development of overseas Economic and Trade Co -operation Zones set up 
by Mainland  China.  
4.2  Guangdong -Hong Kong -Macao greater bay area 
4.5.  The Greater Bay Area comprises the two Special Administrative Regions of HKC 
and Macao,  China, as well as nine municipalities in the Guangdong Province of Mainland China. The 
Development of the Greater Bay Area aims to, through further deep ening co -operation amongst 
Guangdong, HKC and Macao, China, promote synergistic economic development of the Greater Bay 
Area, and develop an international first -class bay area ideal for living, working and travelling. HKC 
will seek to enhance the inter -connectivity and strengthen the high -quality co -operation in various 
aspects between HKC; Macao, China and other cities of the Greater Bay Area under "One  Country, 
Two Systems".  
4.6.  Being an international city with vast experience in global trading and the provis ion of world 
class professional  services , HKC will continue to serve  as a gateway to the Greater Bay Area to 
facilitate multinational companies ' access to the Mainland China market and as a springboard for 
Mainland  China companies seeking to expand into  regional and  international markets. Also, fully 
leveraging its unique position as an international financial  and trading centre,  the world 's largest 
offshore Renminbi (RMB) hub  and an international asset management centre,  HKC is well -placed to 
meet the risi ng demand for fund -raising and financial management services for companies from the 
Greater Bay Area , thereby consolidating HKC 's dual role in "going global and attracting foreign 
investment " in the Greater Bay Area . 
4.3  Maintaining a free and open regime for enterprises, investment and talents  
4.7.  To sustain long -term growth and enhance our competitiveness, HKC is putting in place 
new institutional setups and implementing an array of new initiatives targeted at attracting 
enterprises, investment and tale nts. 
4.8.  HKC is taking  proactive and aggressive  measures to attract enterprises and talents from around 
the globe . The Office for Attracting Strategic Enterprises (OASES), led by the Financial Secretary, 
was established in December 2022 to attract  high-potenti al and representative  strategic enterprises 
from around the globe, particularly those from industries of strategic importance, such as life and 
health technology, artificial intelligence and data science, financial technology  (Fintech), advanced 
manufactur ing and new energy technology. An Advisory Committee on Attracting Strategic 
Enterprises, comprising representatives from relevant business sectors and social leaders, was 
set up in February 2023 to advise the Financial Secretary on the overall strategy.  
4.9.  On talent attraction, a series of initiatives were launched in December 2022 to facilitate outside 
talents to come to HKC to explore opportunities, including a new Top Talent Pass Scheme (TTPS) to 
entice high -income  talents with good educational background . The TTPS has  received positive 
feedback  with over 30 ,000 application s approved as at end-July 2023. Meanwhile, HKC will set up a 
new agency "Hong Kong Talent Engage " to provide one -stop support services on various aspects of 
settlement for talents from ar ound the world . 
4.10.  HKC has also set up the Dedicated Teams for Attracting Businesses and Talents in 
17 Hong Kong Economic and Trade Offices overseas and Mainland  China Offices to proactively reach 
out to high-potential target enterprises and talents . 
4.4  Small and medium enterprises initiatives  
4.11.  With SMEs accounting  for over 98% of our businesses , HKC recogni zes the role of SMEs as 
an important driving force in economic development . HKC introduces initiatives to strengthen their 
engagement in international tra de by supporting the ir operation and  development through various  
 
3 B&RI refers to the "Silk Road Economic Belt " and the "21st Century Maritime Silk Road " which were 
first announced in 2013.  WT/TPR/G/450 • H ong Kong, China 
 
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  government  funding schemes, guaranteed loan schemes, advisory services and capacity -building 
programmes:  
(a) Funding Schemes: T he SME Export Marketing Fund (EMF), the Dedicated Fund on 
Brandi ng, Upgrading and Domestic Sales (BUD Fund), and the Trade and Industrial 
Organisation Support Fund  (TSF) , established in 2001, 2012 and 20184 respectively,  aim 
to assist enterprises in exploring more diversified markets and enhanc e their 
competitiveness.  Since 2018, the  Government has implemented several rounds of 
enhancement s to the funding schemes to better support SMEs during the COVID -19 
pandemic. In addition, SMEs also benefit from the wide range of funding schemes under 
the Innovation and Technology Fund to facilitate technology adoption and digital 
transformation in their operations.  
(b) Guaranteed Loan Schemes: The SME Loan Guarantee Scheme , which was established in 
2001, provides loan guarantees to help  SMEs secure loans from participati ng lending 
institutions for acquiring business installations and equipment and for general business 
use in meeting working capital needs .5 The SME Financing Guarantee Scheme , operated 
by the Hong Kong Mortgage Corporation Company Limited , was set up in 20 11 with the 
aim to help local SMEs and non -listed enterprises to obtain financing from participating 
lenders for meeting their business needs so as to enhance their productivity and 
competitiveness in the rapidly changing business environment.  
(c) SME Cent res: To strengthen support for SMEs and to raise SMEs ' awareness of the various 
funding schemes,  the Government  has consolidated the services of the existing four  SMEs 
centres  operated by different agencies  to provide "four-in-one" integrated services 
since October  2019 so that SMEs can obtain business information , funding schemes  
information, and advisory services, etc.  at any of the aforementioned centres . In addition, 
a web portal called "SME Link " was launched in mid -2022 for SMEs to access 
comprehensive information and support services from a single online platform.  
(d) SME ReachOut: Additionally , HKC established "SME ReachOut " in January  2020 to 
proactively support SMEs  through face -to-face or online  meetings to help them identify 
and apply for suitable government funding schemes. The services of "SME ReachOut " will 
be enhanced from October 2023  to step up  tailored support on government funding 
applications as well as capacity -building services to SME s. 
4.5  Financial services  
4.12.  HKC is an international financial centre, providing a wide range of financial products and 
services to local and international institutions and investors , as well as serving as the premier 
gateway between Mainland China and the rest of the world . HKC 's financial markets are 
characteri zed by diverse offerings, deep liquidity , and effective and transparent regulations  that are 
aligned with international standards. The financial services industry contributed 21.3 % of HKC 's GDP 
and 7 .6% of HKC 's total employment in 2021. HKC  ranked fourth globally in the Global Financial 
Centres Index published by Z/Yen and the China Development Institute in March  2023. To  
strengthen HKC 's competitiveness and maintain our position as a leading regional and international 
financial centre, HKC will continue to facilitate  market  development , enhance regulatory regime and 
upgrade market infrastructure.  
4.5.1   Securities and futures  
4.13.  With a view to developing HKC into a deeper and broader fundraising platform and capturing 
new opportunities presented by th e changing global financial landscape, HKC has introduced a series 
of revamps since 2018 to moderni ze its listing regime in facilitating the listing of new economy 
companies (including pre -revenue/pre -profit biotechnology companies and innovative companies  
that have weighted voting rights structures) and overseas issuers, as well as a new listing 
mechanism for Special Purpose Acquisition Companies . In March 2023, a new listing regime for 
 
4 The TSF is a merger between the previous SME Development Fund and the Organisation Support 
Programme under the BUD Fund in October 2018.  
5 The SME Loan Guarantee Scheme has ceased to receive applications from 1 April  2021 since the 
SME Financing Guarantee  Scheme has effectively assisted SMEs in obtaining financing loans.  WT/TPR/G/450 • Hong Kong, China 
 
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  specialist technology companies was launched, further expanding the li sting channel for issuers and 
facilitating advanced technology enterprises that have yet to meet the existing profit or revenue 
requirements of the Main Board to list and raise funds . In addition to expanding the local capital 
market, the new listing regim e is conducive to facilitating technology companies from different places 
to access international capital and expand their businesses, driving forward the development of 
innovative technology industries and the real economy.  
4.5.2   Asset and wealth management  
4.14.  On asset and wealth management, in addition to the Open -ended Fund Company  (OFC) 
regime which came into effect in July 2018 , the Limited Partnership Fund (LPF) regime came into 
effect in August 2020 . A re-domiciliation mechanism to attract foreig n funds to mi grate to HKC as 
OFCs or LPFs was launched in November 2021 . To provide a more facilitating tax environment, tax 
concessions are offered to publicly offered funds, transactions in specified assets of privately offered 
funds (since 1 April 2019), and carried  interest issued by eligible private equity funds 
(since  1 April 2020) . Legislation on a  new profits tax exemption regime for eligible family -owned 
investment holding vehicles was passed in May 2023 and the tax exemption will apply to any  years 
of assessme nt commencing  on or after 1 Apri l 2022.  
4.5.3   Insurance  
4.15.  The insurance industry in HKC is a cosmopolitan and competitive one. A level -playing field is 
maintained for all insurers and insurance intermediaries irrespective of their place of origin. This is 
evident from the large number of authori zed insurers (164 as of 31 July 2023) and the strong 
presence of foreign companies, with about 40% of the authori zed insurers being incorporated outside 
HKC in 21 places. In 2022, the insurance density of HKC was highest in Asia and ranked 
second  globally.  
4.16.  The Insurance Authority ( IA), which is an independent regulator established under the 
Insurance Ordinance  (Chapter 41 of the Laws of Hong Kong ), commenced statutory functions to 
regulate  insurance companies in June 2017, subsequently assumed the responsibility for direct 
regulation of insurance intermediaries in September 2019, and effected in March  2021 an enhanced 
legal framework for performing group -wide supervision . In co-operation with the IA, the Government 
implemented in 2021 a series of measures to promote market development, including offering 
half-rate profits tax concessions for marine and specialty insurance, and expanding the scope of 
insurable r isks for captive insurers set up in HKC. HKC also established in 2021 a dedicated 
regulatory regime and pilot grant scheme for insurance -linked securities (ILS), which have facilitated 
four issuances of  catastrophe bonds in HKC with a total issue amount of  USD 560 million , one of 
them being the inaugural ILS listed on the Hong Kong Exchange s and Clearing Limited . Moreover, 
HKC is undertaking a legislative exercise to implement a Risk -based C apital regime for 
HKC's  insurance industry to further strengthen th e financial soundness of insurance companies and 
align with international standards.  
4.5.4   Offshore Renminbi business  
4.17.  HKC continues to be a global offshore RMB  business hub, with the world 's largest offshore 
pool of RMB funds and foreign exchange and interest ra te derivatives market, and a leading position 
in RMB settlement, financing and asset management providing a diversified range of RMB products 
and services . As at end-2022, RMB  deposits (including outstanding Certificates of Deposit) in  HKC 
was about RMB981.7 billion . According to SWIFT, about 75% of global offshore RMB payments are 
processed in HKC.  HKC will continue to promote the launch of more RMB -denominated investment 
tools and the provision of stable and highly efficient treasury services such as foreign exchange, 
exchange rate risk and interest rate risk management tools in the market.  
4.5.5   Bond market  
4.18.  The bond market of HKC has continued to grow in tandem with the Government 's active 
promotion . According to the International Capital Market Association, counting in terms of bonds 
issued internationally by Asia -based entities, the volume arranged by  HKC ranked first globally for 
seven consecutive years since 2016, exceeding US D 100 billion and capturing 30% of the market 
in 2022. As digitali zation of the bond market gathers pace, the Government issued tokeni zed green WT/TPR/G/450 • H ong Kong, China 
 
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  bonds leveraging the blockchain technology in February 2023 to demonstrate the feasibility of 
HKC's  platform  and e ncourage industry take -up. The Government will continue to promote the 
advantages of HKC 's bond market to issuers and investors around the world to deepen the bond 
market development.  
4.5.6   Virtual assets  
4.19.  In October 2022, HKC issued a Policy Statement on Develop ment of Virtual Assets (VA) in 
Hong Kong,  China  setting out the vision and policy direction of the Government in this regard. HKC 
is committed to establishing a facilitating environment, with timely and necessary guardrails to 
mitigate actual and potential risks put in place in accordance with international standards. To 
enhance the regulatory framework, HKC has put in place a licensin g regime for VA trading platforms, 
which commenced operation in June 2023. The Government has established the Task Force on 
Promoting Web3 Development to provide recommendations on the sustainable and responsible 
development of Web3 in HKC.  
4.5.7   Green and sustainable finance  
4.20.  HKC takes a multi -pronged strategy to promote green and sustainable finance . As at 
early May 2023, the Government has successfully issued since May 2019 Government green bonds 
totalling close to US D 16 billion equivalent, including retail gr een bonds . The Government issued 
tokeni zed green bond s leveraging the blockchain technology in February 2023 . The Government also 
launched the Green and Sustainable Finance Grant Scheme in 2021 to provide subsidy for eligible 
bond issuers and loan borrowers to cover their expenses on bond issuance and external review 
services, and the Pilot Green and Sustainable Finance Capacity Building Support Scheme 
in December  2022 to encourage local eligible practitioners and related professionals as well as 
students and graduates of relevant discipline to participate in training related to green and 
sustainable finance . The Hong Kong Exchanges and Clearing Limited  launched an international 
carbon marketplace Core Climate in October 2022, which is currently the only carbon marketplace 
that offers HKD  and RMB settlement for the trading of international voluntary carbon credits.  
4.6  Innovation and technology  
4.21.  In late 2022, the Innovation, Technology and Industry Bureau promulgated the Hong  Kong 
Innovation and Technology  Development Blueprint (the I&T Blueprint) to establish a clear 
development roadmap and formulate systematic strategic planning for HKC's I&T development over 
the next 5 to 10 years, charting the path for HKC to move full stream towards the vision of an 
international I&T centre.  
4.22.  Major initiatives outlined in the I&T Blueprint include developing I&T infrastructure through 
the construction of the new Hong Kong -Shenzhen Innovation and Technology Park (HSITP) and 
expansion of the existing Science Park and Cyber port; promoting research and development (R&D); 
supporting start -ups and technology investments; promoting technology adoption and nurturing 
I&T culture; and nurturing and attracting I&T talents.  
4.23.  Looking ahead , the 2023 -24 Budget has further announced the following measures  to enhance 
HKC's I&T ecosystem, so as to support HKC's development into an international I&T centre:  
 On developing digital infrastructure and promoting digital transformation, the Government 
has commenced  a feasibility study on the devel opment of an Artificial Intelligence  (AI) 
Supercomputing Centre, set aside HKD 500 million  (USD 64 million ) for Cyberport to launch 
a Digital Transformation Support Pilot Programme, and allocate d HKD 50 million  
(USD 6.4 million)  to expedite the Web3 ecosystem development in HKC; 
 On consolidating HKC's strengths in scientific research and promoting the development of 
technology industries, the Government will set aside HKD 6 billion  (USD 739 million)  to 
support  universities and re search institutes to set up thematic research centres related to 
life and health technology, as well as earmark HKD 3 billion  (USD 385 million)  to promote 
the development of frontier technology fields such as AI and quantum technology ; WT/TPR/G/450 • Hong Kong, China 
 
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   On nurturing technol ogy start -ups and talents, the Hong Kong Science & Technology Parks 
Corporation  (HKSTPC ) will inject HKD 400 million  (USD 51 million ) into its Corporate 
Venture Fund and allocate HKD 110 million  (USD 14 million ) to launch the Co -acceleration 
Programme in c ollaboration with co -operation partners . A provision of HKD 265 million  
(USD 34 million)  is set aside  for Cyberport to launch a dedicated incubation programme for 
smart living start -ups, and a funding of HKD 300 million  (USD 38 million ) to extend the IT 
Innovation Lab in Secondary Schools Programme; and  
 On developing I&T Infrastructure and promoting new industriali zation, the HKSTPC  will 
conduct a feasibility study on the setting up of the second Advanced Manufacturing Centre. 
Moreover, the first three buildings of the HSITP in the Lok Ma Chau Loop will be gradually 
completed from the end of next year , while the consultation on the d evelopment proposals 
and land use planning of San Tin Technopole will begin in the second quarter of  2023 for 
target commencement of site formation works in the fourth quarter of  2024.  
4.24.  In tandem, HKC endeavors to build a smart city with a smart government by turning all 
government services online by 2024 and providing one -stop digital services through full adoption of 
the "iAM Smart" platform by 2025. The digitali zation process will be marked by a hundred digital 
government projects with the application of technology for the benefit of the public. As at end -2022, 
over 80% of the licences and government services involving application and payment have been 
provided with e -options.  
4.25.  The 5G mobile services were commercially launched on 1 April 2020, enabling user s of mobile 
communications services to enjoy up -to-date and advance innovative communications services and 
smart city applications. Since then, 5G deployment has become more and more prevalent. At 
present, HKC's 5G network has reached more than 90% of the population, covering major locations 
in the urban areas and all 98 mass transit railway stations. The coverage in core business areas for 
some mobile network operators has even reached 99%. The Government will continue to 
promote  5G development on various fronts, including opening up 1 500 and more government 
premises to facilitate installation of radio base stations, making available suitable spectrum timely 
to suit market needs and supporting different sectors to promote wider deployment of 5G technology 
and applications.  
4.26.  According to the IMD, HKC ranked third in Asia -Pacific (ninth in the world) for digital 
competitiveness in 2022 . To speed up the development of the digital economy in HKC, the Digital 
Economy Development Committee, chaired by the Financia l Secretary, was set up in June  2022 to 
look into the digital infrastructure needed to promote the development of the digital economy , 
examine ways on the transfer of cross -boundary data in a convenient, efficient and secure manner , 
the digital transformat ion of enterprises , and human resources support . 
4.7  Trading, shipping, aviation and logistics services  
4.27.  The convention and exhibition (C&E ) industry has always been an important element in 
underpinning HKC's status as an international trade centre. The C&E industry brings important 
contributions to HKC's economy by attracting high -spending overnight business visitors, spurring 
economic activ ities and creating employment opportunities in sectors such as tourism, retail, 
catering, entertainment industries, etc.; while facilitating local SMEs to connect with international 
buyers and suppliers to develop new markets and explore business opportuni ties. The Government 
strives to support the C&E industry in short and long terms through provision of financial incentives 
and expansion of C&E facilities. To consolidate HKC's status as a premier venue for large -scale 
international C&E activities, the Gov ernment will take forward the AsiaWorld -Expo Phase  2 project 
and the Wan Chai North redevelopment project to substantially increase large -scale C&E  spaces.  
4.28.  HKC also strives to enhance its status as an international aviation hub. On air transport, the 
Airport Authority Hong  Kong (AAHK) is pursuing various infrastructure projects such as the 
Three  Runway System  (3RS)  to increase the passenger and cargo handling capacity of Hong  Kong 
International Airport (HKIA). The Third Runway was officially commissioned in  2022, marking a key 
milestone of the 3RS project. The AAHK is also materiali zing its vision in phases starting  2022 to 
transform HKIA into an Airport City with increased capacity, functionality and connectivity, which  
will help to foster cross -border logi stics, trade and business and ultimately e nhance and consolidate 
HKC's status as  an international aviation hub.  WT/TPR/G/450 • H ong Kong, China 
 
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  4.29.  HKC is the world's no. 1 cargo hub. In terms of air cargo, the expansion of the express mail 
centre at HKIA was completed in March 2023, while a  new premium air cargo logistics centre is 
expected to become operational in the fourth quarter of 2023. Redevelopment of the Air Mail Centre 
at HKIA is also underway. In addition, HKIA has obtained international accreditations for handling 
high-value carg o such as pharmaceuticals, fresh produce and live animals, with complementary 
world -class temperature -controlled facilities in place.  
4.30.  On maritime transport, the Government is committed to consolidating and enhancing 
HKC's  position as an international marit ime centre. As announced in the Chief Executive's  2022 
Policy Address, HKC will launch a Maritime Services Traineeship Scheme in 2023 to provide 
traineeship for young people who  aspire to a career in maritime law, as well as actively promote the 
developmen t of smart port to strengthen the competitiveness of our port by setting up a port 
community system to facilitate the flow and sharing of data among st operators and other 
stakeholders . As further announced in the 2023 -24 Budget, in order to further promote  the 
development of HKC  as an international maritime centre, the Government will set up a task force 
with the aim of putting forward, in collaboration with the industry, an action plan by the end  of 2023 
on strategies that include enhancing business sector s such as ship finance, marine insurance, 
maritime arbitration and ship manage ment, thereby enabling HKC  to become a global leading 
high-end maritime service market.  
4.31.  On logistics front, HKC has all along been an important logistics hub in Asia underpinned by 
its strengths as an international aviation hub and an international maritime centre . The Government 
is working closely with the logistics industry as well as the Hong Kong Logistics Development Council 
to map out development strategies along the directi on of enhancing intermodal operation within the 
Greater Bay Area, promoting the development of high -end and high value -added logistics services 
as well as encouraging a wider application of smart logistics solutions, so as to create an environment 
conduciv e to the sustainable and healthy development of the industry for accelerating the 
development of HKC as a modern logistics hub.  
4.8  Intellectual property trading  
4.32.  HKC has been pursuing a multi-pronged strategy  to drive the develo pment of IP  trading . The 
measures adopted by the Government focus on the following three areas : 
 Enhancing IP protection regime – A prerequisite to IP trading is the legal protection of 
intellectual creations and the recognition of IP rights in HKC's legal system. Our 
enhancem ent efforts in this respect are set out in subsections 4.9.1.1 to 4.9.1.4 on the  
legislation front . 
 Strengthening capacity -building – Since 2015, the IP Manager Scheme launched by the 
Intellectual Property Department (IPD) has been assisting local enterpri ses, especially  SMEs, 
in enhancing their IP manpower capacity and boosting their competitiveness through 
strategic IP management and commerciali zation. With support from the Law Society of 
Hong Kong, the IPD has been providing free IP consultation services  for SMEs since 
December  2014 to raise their awareness of IP, and to assist them to develop effective 
IP management and commerciali zation strategies and deal with possible challenges in the 
competitive business environment . 
 Stepping up external promotion a nd education  – The Government  has been co -organi zing 
the Business of IP Asia Forum with the Hong Kong Trade Development Council  (HKTDC)  and 
the Hong Kong Design Centre  (HKDC)  every year since 2013 . The 2022 Forum attracted 
over 14 ,500 participants from 46 countries and regions. T he IPD also co-organi zed with the 
Association of Southeast Asian Nations Working Group on IP Cooperation a webinar on 
"IP Commercialisation in a Knowledge -based Economy " in December 2022, which attracted 
over 50 0 accumulated live views.  
4.33.  The IPD has continued to work with the Department of Justice (DoJ) to promote HKC as a 
centre for international legal and dispute resolution services in the Asia -Pacific region, including  one 
for resolving IP disputes . In this con nection, the two Departments have been collaborating to 
promote the use of arbitration and mediation to resolve IP disputes .  WT/TPR/G/450 • Hong Kong, China 
 
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  4.9  Protection of intellectual property rights  
4.34.  HKC is committed to protecting IP rights. This commitment is underpinned by  the dual 
principles of  respecting private economic rights and recogni zing the importance of robust 
IP protection to HKC 's economic growth.  According to the Global Competitiveness Report  20196 
published by the World Economic Forum, HKC was ranked the fifth globally on the indicator of 
"IP protection ". In the 2023 World Competitiveness Yearbook published by the IMD, HKC was ranked 
the 12th globally on the indicator of "IP rights ". HKC achieves this through comprehensive 
IP legislation, rigorous enforcement a ction, sustained public education, close co -operation with rights 
owners and other law enforcement agencies, and promotion of IP trading . 
4.9.1   Legislation  
4.9.1.1   Patents law 
4.35.  With the launch of the new patent system in December 2019, HKC now operates an original 
grant patent (OGP) system which offers a direct route for seeking standard patent protection in  HKC 
with a maximum term of 20 years, as an alternative to the "re-registration " route. OGP applications 
are subject to substantive examination by the Patents Registry  of IPD for determining the 
patentability of the underlying inventions . The new patent system also refines the short -term patent 
system (under which short -term patents with a maximum term of eight years are granted upon 
formality examination) by enabling a  short-term patent owner or a third party having a legitimate 
interest in the validity of  a short -term patent to request the Registry to carry out substantive 
examination on the underlying invention. This new post -grant substantive examination mechanism 
safeguards the integrity of the short -term patent system while maintaining its overall 
cost-effectiveness.  
4.36.  The IPD is enhancing its substantive examination capability by increasing the number of 
patent examiners in phases with a view to acquiring institutional autonomy in conducting substantive 
patent examination by 2030.  
4.9.1.2   Copyright law 
4.37.  HKC enacted the Copyright (Amendment) Ordinance 2020 in June 2020 to enhance the 
copyright exceptions relating to persons with a print disability in the Copyright Or dinance 
(Chapter  528 of the Laws of Hong Kong) by bringing them in line with the standards under the 
Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually 
Impaired, or Otherwise Print Disabled (which entered into forc e in Mainland China and applied to 
HKC in  May 2022).  
4.38.  In addition , the Copyright (Amendment) Ordinance 2022 entered  into force on 1 May  2023 to 
strengthen copyright protection in the digital environment in light of rapid advances in technology. 
The Government will also embark on a new round of copyright review with a view to maintaining a 
robust and competitive copyright regime.  
4.9.1.3   Trade marks law 
4.39.  The Trade Marks (Amendment) Ordinance 2020 was enacted in June 2020 to provide a legal 
basis for the application of the Protocol Relating to the Madrid Agreement Concerning the 
International Registration of Marks (Madrid Protocol) to HKC . The Government h as since been 
pressing ahead with the necessary preparatory work for implementation of the Madrid Protocol 
in HKC, with a view to implementing the international trademark registration system under the 
Madrid Protocol in HKC as early as practicable.  
4.9.1.4   Designs  law 
4.40.  The Registered Designs Ordinance  (Chapter 522 of the Laws of Hong Kong)  effective 
since June 1997 provides HKC with its own design protection system . The Government plans to 
 
6 This is the latest edition available.  WT/TPR/G/450 • H ong Kong, China 
 
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  launch a comprehensive review of the registered designs regime in 2024  with a  view to launching  
consultation in 2025 on the way forward in updating the regime.  
4.9.2   Enforcement  
4.41.  The C&ED strives to combat trademark counterfeiting and copyright infringement activities. 
The sustained actions put trademark counterfeiting in HKC firmly under  control, with no sign of 
major counterfeit goods manufacturing activities emerging. Special attention has also been paid to 
trademark counterfeiting activities related to goods which affect public health including medicines 
and food, and immediate enforce ment actions have been taken against such illicit activities.  
4.42.  The C&ED spares no efforts in combating online infringement activities. New technologies 
have been employed in cyber investigations and enforcement operations have been conducted 
against the onl ine sales (mostly on online market places and social media platforms) of counterfeit 
and infringing goods, as well as the sale of karaoke players with infringing songs and the provision 
of infringing karaoke songs by party room operators.  
4.43.  From 20 19 to 2022 , the C&ED  has detected more than 450 online cases with seizure of 
about  57,000 items of infringing goods with an estimated mar ket value of about HK D 18 million  
(USD 2.3 million ). The seized goods covered a variety of commodities including counterfeit good s 
such as leather products, clothes, footwear, accessories, perfumes, cosmetics products and pirated 
goods like pirated electronic games, karaoke players loaded with infringing songs and electronic 
devices used for circumventing paid TV channels.  
4.10  Legal and  dispute resolution services  
4.44.  As a leading international centre for legal and dispute resolution services, HKC possesses a 
solid foundation of the rule of law and a robust legal system, which is bilingual in English and Chinese. 
HKC's common law system follows the same legal tradition as the world 's major economies and 
aligns with international business rules. Fundamental rights and freedoms, including freedom of 
speech, of the press, of assembly and the right to a fair trial, are ensh rined in the Basic Law. 
HKC courts exercise judicial power independently, including the power of adjudication, free from any 
interference. HKC has a wealth of legal and dispute resolution professionals with cross -regional 
experience, multilingual proficien cy and cultural diversity, giving it an edge on the provision of 
professional and quality legal and dispute resolution services to the Asia -Pacific region and beyond.  
4.10.1   Arbitration  
4.45.  HKC is a world -renowned international arbitration centre, with a pro -arbitrat ion judiciary, a 
modern arbitration law based on the UNCITRAL Model Law on International Commercial Arbitration 
and many world -class arbitral institutions.  
4.46.  HKC has long been recogni zed as a preferred seat for international arbitration. In the 2021 
Internat ional Arbitration Survey conducted by Queen Mary University of London, HKC ranked the 
third most popular seat for arbitration globally, chosen by 50% of the survey respondents worldwide.  
4.47.  In addition to the resolution of disputes involving international par ties, specialist arbitrations 
are also well -established in HKC, such as intellectual property arbitration, domain name arbitration, 
maritime arbitration, construction arbitration and investment arbitration.  
4.48.  Arbitral awards made in HKC can be recogni zed and  enforced in Mainland China; 
Macao,  China; and internationally, with a good track record of quality and enforceability. HKC is the 
first seat of arbitration outside Mainland China where parties are able to apply directly to Mainland 
China courts for interi m measures.  
4.49.  On 21 September  2020, the Baltic and International Maritime Council (BIMCO) announced 
the adoption of the BIMCO Law and Arbitration Clause 2020. The Law and Arbitration Clause  2020 
replaces the Dispute Resolution Clause 2017. HKC is named under  the new Arbitration Clause as one 
of the four designated arbitration venues, alongside London, New York and Singapore, proving 
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  4.10.2   Mediation  
4.50.  The Mediation Ordinance (Chapter 620 of the Laws of Hong Ko ng) promotes, encourages and 
facilitates the use of mediation to resolve disputes and protects the confidential nature of mediation 
communications.  On 16 February 2023, the International Organization for Mediation Preparatory 
Office was set up in H KC, strengthening H KC's position as an international legal and dispute 
resolution services centre in the Asia -Pacific region.  The DoJ has also been proactively organi zing 
and supporting a number of training and capacity -building programmes to strengthen HKC's stat us 
as a regional and international centre for legal and dispute resolution services.  
4.10.3   Online dispute resolution  
4.51.  HKC supports  the development of online dispute resolution (ODR) to provide an efficient, cost -
effective and secure platform for resolving dispute s between parties in any part of the world . 
HKC has opted into the APEC Collaborative Framework for Online Dispute Resolution of Cross -Border 
Business -to-Business Disputes ( APEC ODR Framework) in April  2020. 
4.11  Tourism, art, cultural and creative industries  
4.11.1   Tourism  
4.52.  Tourism is traditionally a pillar industry of HKC. In 2018, before the COVID -19 pandemic, it 
accounted for 4.5% of HKC's GDP and employed some 260 ,000 people. However, the industry 
suffered heavily under the COVID -19 pandemic since early -2020, with both outbound and inbound 
tourism ground to a halt for almost three years.  
4.53.  With the COVID -19 pandemic easing, HKC's reopening gathered pace since the last quarter 
of 2022. The Government launched the "Hello Hong Kong" global promotion campaign h eralding our 
return to the world stage and welcoming visitors to return to HKC. The tourism industry of HKC is 
thus right on the recovery path. The latest inbound figures show that the number of visitor arrivals 
in July 2023 reached 3.59  million , returning  to 69% of that in July 2019 and 66% of that 
in July 2018.  
4.54.  At this critical initial stage of recovery, the Government is allocating an additional 
HKD 950 million (US D 122 million), including HK D 820 million (US D 105 million) of additional 
funding for the H ong Kong Tourism Board (HKTB ) to attract visitors back to HKC on one hand and 
continue to support the tourism trade in consolidating its tourist receiving capacity on the other . 
Together with its recurrent allocation of close to HK D 730 million (US D 94 million) in 2023 -24, 
HKTB  will be reinforcing its efforts in promoting HKC to visitors around the world . HKTB will also 
organi ze and support the staging of major culture, sports and tourism events in HKC as well as step 
up efforts in securing more meeting s, incentive travels, conventions and exhibitions (MICE) of 
various scales and types in HKC with a view to strengthening HKC's position as an events capital 
and a premier MICE destination . 
4.11.2   Art and culture  
4.55.  The Government is committed to fostering the cultur al development of HKC to expedite its 
progression into an East -meets -West centre for international cultural exchange, and the Culture, 
Sports and Tourism Bureau (CSTB) was established in July 2022 to further promote the development 
of the sector. HKC has f ormulated policy measures to leveraging our unique position under 
"One Country, Two Systems" and the advantages of HKC as a city where Chinese and Western 
cultures meet. The specific strategic directions include (a) developing world -class cultural faciliti es 
and a pluralistic cultural environment; (b) enhancing cultural exchange and co -operation with 
Mainland China and strengthening our connections with overseas arts and cultural organi zations; 
(c) leveraging technology to promote the application of integra ted "Arts + Tech"; and (d)  nurturing 
talents. The unique and inclusive cultural diversity and world -class arts and cultural facilities would 
contribute to the development of relevant industries, attract more talents, and also make HKC a 
more attractive soc iety for all.  
4.56.  The West Kowloon  Cultural District (WKCD), stretching across 40 hectares along 
Victoria  Harbour, is an integrated arts and cultural district with world -class facilities. It aims to WT/TPR/G/450 • H ong Kong, China 
 
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  promote the development of arts and culture, meet the public 's growing cultural needs and 
strengthen HKC's position as an international arts and cultural metropolis.  
4.57.  Major  arts and cultural facilities in WKCD include the Hong Kong Palace Museum  (opened 
in July 2022) that showcases most delicate objects from Palace M useum and other leading cultural 
institutions around the world ; M+ (opened in November 2021) , a museum of contemporary visual 
culture presenting collections that focus on 20th and 21st century visual culture ; Xiqu Centre  
(opened in January 2019)  which aims to preserve, promote and develop the art of Chinese traditional 
theatre, and to nurture the local form of Cantonese opera and promote other forms of xiqu ; and 
Freespace  (opened in June 2019) , HKC's new centre for contem porary performances and a creative 
space for cutting -edge productions . Other major facilities in the WKCD, including the Lyric Theatre 
Complex, are planned for completion in the next few years.  
4.11.3   Creative industries  
4.58.  To spearhead the development of HKC's crea tive industries, the Government set up in  2009 
a dedicated office, "Create Hong Kong" (CreateHK) to provide one -stop services to the trade. 
Amongst others, CreateHK operates two funding schemes, viz. the Film Development Fund to 
support projects conductive  to the long -term development of the film industry, and the CreateSmart 
Initiative to support initiatives that are conducive to the development and promotion of the non -film 
creative sectors.  
4.59.  The Government has collaborated with HKDC to promote HKC's wider  use of design and design 
thinking  in the business and public sectors. The HKDC also seeks to educate the professions and the 
community to be resourceful champions for sustainable development through design and innovation. 
The Government has also collabora ted with the HKTDC in organi zing programmes/activities through 
its extensive contact networks and promotional platforms to facilitate local creative industries to 
expand their markets.  
5  CONCLUSION  
5.1.  HKC is a long standing  supporter and practitioner of free mar ket and multilateralism. 
Notwithstanding the uncertainties posed by the rapidly changing global economic environment, rise 
of protectionism and challenges in the aftermath of the prolonged COVID -19 pandemic, HKC remains 
steadfast in maintaining its free ma rket policy and supporting progressive trade liberali zation. 
HKC will continue to take on new initiatives and put in place new institutional setups to facilitate 
trade and business, and seize growth opportunities as HKC forges ahead with our economic 
devel opment.  
5.2.  As an extremely externally -oriented economy, HKC counts on a strong multilateral trading 
system with  WTO at its core to promote and protect its trade interests. A rules -based, non -
discriminatory, fair, open and transparent multilateral trading syst em is the pre -requisite in  
advancing the shared objectives of inclusive growth, innovation, job creation, and sustainable 
development  amongst WTO Members . HKC will continue to defend its legitimate rights and honour 
its obligations under the WTO covered ag reements, with a view to maintaining the security, 
predictability and integrity of the multilateral trading system. HKC will also continue to work closely 
with all WTO Members to strengthen and deepen  the multilateral trading system . 
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