Today, the Hong Kong Special Administrative Region celebrates the 28th anniversary of its establishment. With the enactment of the Hong Kong National Security Law in 2020 and the Safeguarding National Security Ordinance in 2024, Hong Kong’s defensive network is complete, and the benefits are clear. As the empirical evidence confirms, the city made real progress throughout the past year, for good reason.
As the chief executive, John Lee Ka-chiu, has explained, the national security legislation constitutes “a comprehensive legal system and enforcement mechanism for safeguarding national security, providing an effective assurance for the promotion of good governance in Hong Kong”.
Indeed, the fruits of good governance are there for all to see. Hong Kong has a healthy business environment, people’s welfare is prioritized, the streets are safe, and the rule of law is paramount. More than 9,000 overseas and mainland companies have established a presence in Hong Kong, including the over 640 British companies now based in the city. This should come as no surprise, as Hong Kong’s strength has always been its openness to trade and business, as well as its eagerness to connect with economies elsewhere, whether in the Asia-Pacific region or beyond.
On June 17, moreover, the latest World Competitiveness Yearbook, published by the Switzerland-based International Institute for Management Development, named Hong Kong as the world’s third-most competitive economy (up from fifth last year). It scored 99.2 out of 100 (69 economies were judged), and Lee rightly attributed its rise to enhanced government efficiency, including civil service reform. Only Switzerland and Singapore were ahead of Hong Kong, marking the first time since 2019 that it had secured a top-three slot.
By prioritizing its global outreach, the government has opened up new horizons for Hong Kong. Foreign enterprises and talent are being energetically attracted, including from the Middle East. In September 2024, for example, Saudi Arabia granted approval for the first exchange-traded fund (ETF) investing in Hong Kong equities to be listed on its stock exchange. In November 2023, in a significant boost for the financial services sector, the Hong Kong Exchanges and Clearing Ltd welcomed the listing of Asia-Pacific’s first ETF tracking Saudi Arabian equities, allowing local and global investors to invest in the Saudi stock market through Hong Kong.
Moreover, the United Arab Emirates (UAE) is also engaging more intensively with Hong Kong. The opening in 2023 of a Dubai Chambers office, in collaboration with the Hong Kong Trade Development Council, betokens closer economic ties. The UAE recognizes that Hong Kong serves as a gateway to the Chinese mainland, which is why financial entities like the First Abu Dhabi Bank and the Mashreq Group have begun operating in the city.
Meanwhile, the free trade agreement with the Association of Southeast Asian Nations (ASEAN) has now been in force for four years, and Hong Kong’s involvement with the bloc is paying rich dividends. While ASEAN is the city’s second-largest trading partner, Hong Kong is ASEAN’s fourth-largest source of inward direct investment, and this is now being built upon.
If, moreover, as everybody hopes, Hong Kong’s application to join the Regional Comprehensive Economic Partnership (RCEP) is approved shortly, it will provide a significant economic boost (the RCEP is the world’s largest free trade agreement).
Be that as it may, Hong Kong’s fundamentals are sound, and everybody who deals with it knows precisely where they stand. Trading economies around the world are realizing they can only benefit from forging closer associations with the city. After all, the Basic Law guarantees Hong Kong’s capitalist system and way of life (Art 5), and its inherent dynamism has proven a powerful magnet for entrepreneurs and others.
In September, for example, in its World Talent Ranking, the International Institute for Management Development rated Hong Kong as ninth, up from 16th in 2023, which was its first top-10 ranking since 2016 (67 advanced economies worldwide were surveyed). Indeed, the Hong Kong Special Administrative Region government has successfully lured many talented individuals to the city.
By late 2024, for example, it had received over 380,000 applications under its enhanced talent admission programs, which began in 2022. Nearly 240,000 applications were approved, with 160,000 professionals moving to Hong Kong. Of those approved, about 4,100 applicants were UK nationals (which the British foreign secretary, David Lammy, will hopefully reflect in his next six-monthly report on Hong Kong).
And under the new Top Talent Pass Scheme, which targets graduates from the world’s best universities and high-income earners, about 7 percent of the admitted top graduates came from British universities (as Lammy should also note).
Moreover, Hong Kong performs well in science education, with a very high percentage of graduates in science, and its universities have excelled themselves generally.
In the Quacquarelli Symonds (QS) World University Rankings 2025, six of Hong Kong’s public universities achieved improved rankings, with the University of Hong Kong (HKU) climbing to 11th place. QS noted that Hong Kong’s “Study in Hong Kong” brand should help attract global talent and cement its reputation as a leading academic destination, which is already well established.
In 2022-23, for example, there were over 13,300 nonlocal undergraduate and postgraduate students from 86 jurisdictions at HKU, with about 70 percent of professoriate staff coming from outside Hong Kong, and the figures are rising. With the United States making life increasingly difficult for overseas students, Hong Kong is well positioned to help people in search of a world-class education, as the evidence confirms.
Apart from students, scholars are also flocking to Hong Kong. For example, HKU’s professoriate recruitment drive attracted over 120 top scholars from elsewhere in 2024 (in 2024-25 its academic staff numbered approximately 7,400, catering to over 42,000 students).
In September, moreover, the Global Financial Centres Index, which provides periodic evaluations of future competitiveness and rankings for 119 international financial centers, ranked Hong Kong as third (hard on the heels of New York and London, and ahead, for example, of Singapore at fourth, and Shanghai at eighth).
Thereafter, on Oct 16, the Fraser Institute’s Economic Freedom of the World 2024 Annual Report ranked Hong Kong as the world’s freest economy among the 165 economies surveyed. This was no mean feat in the face of keen competition, with Singapore and Switzerland securing second and third place respectively. Moreover, Hong Kong’s leading performances in the categories of “freedom to trade internationally”, “regulation” and “sound money” will have reassured anybody still doubting its economic credentials.
If such were needed, Fraser’s No 1 ranking was proof positive that Hong Kong has maintained an efficient, fair and open business environment within the parameters of the “one country, two systems” framework. The ranking, moreover, would not have been possible if Hong Kong lacked an independent and professional judiciary willing to apply the law without fear or favor.
Although there have been Western attempts to intimidate Hong Kong’s judges, their judgments have remained unaffected. Anybody seeking legal redress in the courts, whether in civil or criminal cases, knows they will receive just outcomes.
It is rightly said that the jewel in Hong Kong’s crown is the rule of law, something to which the business world attaches great importance. It was, therefore, heartening that when the American Chamber of Commerce in Hong Kong (AmCham) surveyed its members last year, almost 80 percent expressed their confidence in the city’s rule of law. Whereas 76 percent saw Hong Kong as a competitive business hub, they also cited its connectivity with the Guangdong-Hong Kong-Macao Greater Bay Area (where two-thirds did business), the free flow of capital, and the simple tax system. AmCham said Hong Kong “has a crucial role to play as an international business hub”, which cannot be gainsaid.
Indeed, over the past year a succession of international legal bodies have shown their faith in Hong Kong by convening here. They included the Presidents of Law Associations in Asia, the International Conference on European Law and Public Health, and the International Association of Prosecutors. They will all undoubtedly have been enlightened by what they saw.
It was, moreover, a notable feather in Hong Kong’s cap when the International Organization for Mediation announced it was establishing its headquarters in Hong Kong, the first global body to do so. However, it was not a great surprise, given Hong Kong’s trailblazing role in the provision of arbitration and mediation services.
According to the 2025 Queen Mary University of London International Arbitration Survey, Hong Kong is tied with Singapore as the world’s second-most preferred seat of arbitration. It also reported that the Hong Kong International Arbitration Centre’s rules are now, together with Singapore’s, the most preferred arbitral rules in the Asia-Pacific region.
On June 16, public consultations began on the 2025 Policy Address. Lee and his principal officials will be conducting district visits to gauge views on the ground. The consultations will include more than 40 online and offline sessions, together with district forums. Lee has stated that Hong Kong’s governance priorities include boosting the economy, pursuing development and improving people’s livelihoods, and he is keen to receive the public’s feedback. Listening governments are always welcome, and anybody with constructive ideas about how they see their city’s future developing should make their voice heard.
Although a complicated year lies ahead, Hong Kong is up to the challenge. With the motherland’s encouragement, the city, by drawing upon its know-how, focus and resilience, will continue to thrive. As Lee has put it, by “Leveraging the dare-to-fight and win spirit in its people, Hong Kong will break new ground and achieve another leap forward”.
As the Hong Kong SAR celebrates its 28th anniversary, everybody can reflect with pride upon its achievements. Its progress has been steady, and at times spectacular. It has been supported throughout by the central authorities, whose commitment to the “one country, two systems” policy and the welfare of local people has been unflagging. Although a bright future beckons, the city must always seize its opportunities and remain focused on the bigger picture.
The author is a senior counsel and law professor, and was previously the director of public prosecutions of the Hong Kong Special Administrative Region.
The views do not necessarily reflect those of China Daily.
