Published: 00:02, April 28, 2025
John Lee’s Zhejiang visit a smart response to US levy
By Dominic Lee

In recent weeks, the Hong Kong Special Administrative Region has found itself at the crosshairs of intensifying geopolitical tensions, as Washington announced unprecedented tariffs targeting our city. These punitive tariffs, rising to as high as 145 percent, have been described by Hong Kong Chief Executive John Lee Ka-chiu as “reckless” and a gross violation of free trade principles.

Indeed, these tariffs vividly illustrate the United States’ hostility toward China’s continued prosperity and stability. Hong Kong residents should give up fantasies about the US, as Washington’s true intention is not merely economic, but to undermine our city’s future entirely.

Facing these realities, the SAR has chosen a prudent and proactive response. Rather than retreating into isolation or succumbing to external pressure, the administration under Lee has acted decisively, moving swiftly to build stronger economic, technological, and social ties within China. Lee’s recent visit to Zhejiang province, accompanied by senior officials and business leaders, underscores the depth of commitment the SAR government holds toward securing Hong Kong’s future amid global turbulence.

Zhejiang, particularly its provincial capital, Hangzhou, represents an ideal partner for Hong Kong in these challenging times. It is a thriving center of innovation and home to some of China’s most promising technological enterprises. During his visit, Lee highlighted the potential for collaboration between Hong Kong universities and Zhejiang’s innovation hubs, including the Zhejiang University-Hangzhou Global Scientific and Technological Innovation Center. This facility, acclaimed for its groundbreaking research in fields such as artificial intelligence and semiconductor materials, aligns perfectly with Hong Kong’s ambition to diversify and enhance its economy.

Notably, Zhejiang province is nurturing the rise of the “Six Little Dragons”, a dynamic cluster of innovative startups. Companies such as DeepSeek, Unitree Robotics, BrainCo, and Deep Robotics are making impressive strides in AI, robotics, and brain-computer interfaces, representing precisely the type of high-value, future-oriented enterprises Hong Kong seeks to attract and partner with. The chief executive, fully recognizing this opportunity, encouraged Hong Kong enterprises in Zhejiang to actively support these technology companies in seeking listings in Hong Kong’s capital markets — a strong example of Hong Kong’s role as an international financial center and its pivotal position linking Chinese mainland enterprises to global investors.

It is precisely through such decisive action and strategic foresight that Hong Kong will secure its prosperity and stability, no matter the external pressures or threats it may face. The struggle is not over, but our city has nothing to fear. Together, with unity, pragmatism, and determination, Hong Kong will emerge stronger from these challenging times

Indeed, deepening economic integration with Zhejiang is not just a strategic response to external aggression — it is also a pragmatic step toward economic diversification and industrial upgrading. As Lee recently stressed, Hong Kong must prepare for a “long battle” against protectionist measures imposed by the US. The city should join the nation’s bid to shift from traditional manufacturing and processing toward the creation of globally recognized and high-quality brands. In Lee’s words, the goal is clear: Hong Kong must help the nation move from “Made in China” to “Famous Brands in China”.

Hong Kong’s delegation to Zhejiang, which included key government officials in sectors such as innovation, housing, trade, and youth affairs, symbolizes the government’s comprehensive strategy to harness the opportunities presented by enhanced mainland cooperation. Agreements signed between the SAR and Zhejiang province cover a broad range of policy areas, including technological innovation, economic and trade partnerships, housing initiatives, and youth development programs. Such holistic cooperation demonstrates that Hong Kong is fully committed to tapping into the mainland’s vast economic potential, nurturing local talent, and developing the next generation of Hong Kong entrepreneurs and innovators.

The US tariff policies also remind us of the importance of national unity and the need to abandon illusions about external “saviors”. The SAR’s prosperity has always been deeply intertwined with the success and stability of China as a whole. The US has repeatedly shown it is willing to use economic tools as a political weapon, a practice that undermines the fundamental principles of global trade and cooperation. This serves as a powerful reminder that Hong Kong’s long-term stability and prosperity lie in closer alignment with the nation’s broader interests.

It is time to clearly recognize the geopolitical realities facing our city. Hong Kong’s best response to external threats is to leverage its unique strengths — its status as a global financial hub, its robust legal framework, and its international talent pool — to foster deeper economic and cultural exchanges with vibrant mainland cities like Hangzhou. By doing so, Hong Kong not only strengthens its own economic resilience but also contributes actively to the broader national development.

In short, Hong Kong has chosen wisely. In responding to reckless tariffs and escalating geopolitical tensions, the SAR government has acted boldly, pragmatically, and strategically. Lee’s decisive actions in Zhejiang demonstrate a clear vision for the city’s future: a Hong Kong closely integrated with the mainland economy, confidently building its global brands, and playing a critical role in China’s continued growth.

It is precisely through such decisive action and strategic foresight that Hong Kong will secure its prosperity and stability, no matter the external pressures or threats it may face. The struggle is not over, but our city has nothing to fear. Together, with unity, pragmatism, and determination, Hong Kong will emerge stronger from these challenging times.

The author is the convener at China Retold, a member of the Legislative Council, and a member of the Central Committee of the New People’s Party.

The views do not necessarily reflect those of China Daily.