Hong Kong Chief Executive John Lee Ka-chiu doubled down on deepening ties with Southeast Asia by announcing the fourth economic and trade office (ETO) in the region will open soon in Malaysia. His announcement came just days after the United States passed a bill that could potentially close Hong Kong’s trade outposts in Washington, San Francisco and New York.

The new trade office in the Malaysian capital of Kuala Lumpur will add to Hong Kong’s presence in the Association of Southeast Asian Nations (ASEAN) after ETOs launched in Singapore, Bangkok and Jakarta.

The Hong Kong Special Administrative Region now has 14 ETOs overseas that are responsible for enhancing global understanding of the SAR’s unique advantages, advancing its economic and trade interests, and supporting overseas enterprises in expanding business in the city.

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The US House of Representatives on Tuesday overwhelmingly passed a bill that would require a review of the privileges, exemptions, and immunities granted to Hong Kong’s three ETOs in the US. Under the bipartisan Hong Kong Economic and Trade Office Certification Act in the US, should these trade offices be found not running with “a high degree of autonomy” from China, they would have to cease operations within 180 days.

Addressing the Hong Kong–ASEAN Summit on Friday, Lee said the SAR government “is doing everything” in its power to build on long-term promises with Southeast Asia.

For over 10 years, ASEAN has stood as Hong Kong’s second-largest trading partner in goods. In 2023, trade between ASEAN economies and Hong Kong hit $145 billion, representing close to 13 percent of the city’s overall global trade last year, according to Lee.  

As the world's fifth-largest economy, ASEAN performed impressively in the second quarter, with GDP increasing in all countries, according to global consulting firm McKinsey & Company. Malaysia, the Philippines, Thailand, and Vietnam logged the highest year-on-year growth over the previous four quarters.

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Since July last year, Hong Kong has signed close to 90 cooperation agreements with six ASEAN countries including Singapore and Indonesia in such areas as trade, investment, technology, education, and finance.

Lee also told the summit that Hong Kong is “ready and fully prepared” to join the Regional Comprehensive Economic Partnership (RCEP) — the world’s largest free trade agreement — and is primed to bring singular and significant value to RCEP and its members.

All 15 RCEP members, including the Chinese mainland and the ten ASEAN member states, hold key importance as trading partners for Hong Kong. Collectively, they accounted for about 70 percent of Hong Kong’s total merchandise trade in 2023. The SAR has also signed bilateral free trade agreements with 13 RCEP members.

Contact the writer at evanliu@chinadailyhk.com