"Sailing Together" – Beyond Services, Setting International Standards

Chief Executive John Lee is leading a sizeable 70-member delegation to the Central Asian nations of Kazakhstan and Uzbekistan, actively exploring business opportunities.

The delegation comprised 40 representatives from Hong Kong's business, trade, and professional sectors, alongside 30 representatives from Chinese Mainland enterprises. This is not the first time mainland companies have joined a Hong Kong overseas delegation. In May last year, the Chief Executive led a trade delegation of over 50 people to Qatar and Kuwait in the Middle East — and mainland enterprises participated then, too.

The heads of three major company from the Chinese Mainland stood out on this trip.

The first is Yun Penggang, Chairman of Inner Mongolia Energy Group — a provincial state-owned enterprise of the Inner Mongolia Autonomous Region integrating new energy, thermal power, coal, and engineering.

The second is Yao Chenpeng, Vice President of Transfar Group, a major private enterprise holding a leading position in specialty chemicals and integrated industrial services.

The third is Wei Haigang, General Manager of GAC International — GAC being a large municipal state-owned enterprise that is not only a major domestic automaker, but also provides integrated vehicle and components solutions.

Among these three, Transfar Group established its international management center in Hong Kong last year to handle tax, overseas contracts, and trade matters. GAC Group has long maintained an office in Hong Kong and, in recent years, has been vigorously promoting the sales of its electric vehicle brand, AION, in the city.

During the Chief Executive's conversations with the heads of these three groups, he spoke of Hong Kong and Chinese Mainland enterprises "sailing together." Hong Kong opens the main gate; the mainland companies open the side doors — and together, they sail toward success. The mainland enterprise representatives acknowledged that having Hong Kong's endorsement is a real boost to their overseas business.

Most Hong Kong people may not feel a strong connection to Chinese Mainland enterprises "going global" — it can seem unrelated to their lives. The reality is, a major industry closely tied to Hong Kong sits at the heart of this story: producer services. China's manufacturing value-added accounts for 30% of the global total. It is the only country in the world with full coverage across all 41 major categories, over 200 mid-level categories, and over 600 sub-categories of manufacturing industries.

China has evolved from simple, labor-intensive industries into high-end, precision-driven advanced manufacturing. China's domestic market is among the world's most competitive — companies that have made their mark at home stand a strong chance of succeeding abroad. The era of large-scale Chinese corporate expansion overseas has arrived. Hong Kong is well-placed to play a strong supporting role.

Vice Premier Ding Xuexiang, who oversees Hong Kong affairs, made a pointed remark during a meeting with Hong Kong members of the CPPCC in March last year. Hong Kong, he said, should vigorously develop its producer services industry to bolster the international competitiveness of the nation's industries.

Hong Kong’s goal: build a high-caliber producer and professional services center — one that serves Chinese Mainland enterprises and supports them in using the Hong Kong platform to attract investment and break into international markets.

Hong Kong is, in fact, already deeply engaged in producer services. The city's service sector is highly developed, accounting for 93.5% of local GDP. Producer services — encompassing finance, trade, logistics, and professional services — are already the economic backbone, contributing over 40% of GDP and generating output of approximately HK$1.5 to 1.6 trillion.

Beyond the well-known financial and logistics sectors, Hong Kong's professional services supporting commerce and industry are equally well-developed — spanning law, accounting, engineering, and surveying. These fields should not be underestimated. As Chinese Mainland enterprises venture into international markets, they will need to draw on exactly these capabilities.

Producer services are also a key national development priority. Last year's Central Economic Work Conference called for expanding and upgrading the service sector, advancing producer services toward greater specialization and higher positions in the value chain, and deepening integration with advanced manufacturing and modern agriculture.

The numbers tell the story: China's producer services sector grew in added value from RMB 19.8 trillion in 2016 to RMB 41.1 trillion in 2024 — a compound annual growth rate of 9.5% — with its share of GDP rising from 26.6% to 30.5%.

The development potential for producer services is vast — both on the Chinese Mainland and in Hong Kong — especially as Chinese enterprises go global. Hong Kong can provide them with a full range of professional services, helping them adapt to international standards across industries. Better still, Hong Kong can help the nation shape entirely new international standards.

Consider China's supercharged infrastructure capabilities and its globally dominant "new three" industries — solar energy, lithium batteries, and electric vehicles. Hong Kong is perfectly positioned to help the country establish international standards in these areas and push them into foreign markets.

Take electric vehicles: China accounts for 60% of global EV sales. Why, then, should Chinese companies still be expected to follow Western-defined standards when entering international markets?

That is precisely why the nation brought automotive, new energy, and specialty chemicals enterprises along on Hong Kong's Central Asia delegation. The goal goes beyond helping state-owned enterprises explore new markets. It goes beyond generating more producer services business for Hong Kong.

The real target is higher: establishing a set of international standards more favorable to China for its key emerging industries — new energy, electric vehicles, and advanced chemicals — and breaking free from the West's dominance over "international standards."

There was a time when even a single screw in Hong Kong had to conform to British standards and be sourced from British suppliers. That era is long gone.

Lo Wing-hung

Bastille Commentary

** 博客文章文責自負,不代表本公司立場 **

One man. Two completely opposite personas. The contrast is nothing short of astonishing.

In the White House Oval Office, Trump lectures foreign leaders as a matter of routine. Ukrainian President Zelensky, Canadian Prime Minister Carney, British Prime Minister Starmer, French President Macron — each was either berated to his face or skewered with biting sarcasm. Hardly anyone walked away unscathed.

Yet the ferocious tiger that roars in the Oval Office turned into a tame kitten the moment he touched down in China. Trump offered no hostile remarks. He was measured. He was reasonable.

On the question of Taiwan independence, Trump later told interviewers that he had discussed the matter in depth with President Xi Jinping, and had come to understand China's position — proof that he is, when it counts, capable of listening and reaching a compromise.

The Beijing visit produced several moments that will linger in the memory. The most striking came while the two leaders strolled among ancient trees at Zhongnanhai. Trump asked President Xi whether he often received foreign leaders there. Xi shook his head: "Very rarely. At first, we usually didn’t hold diplomatic events here. Even after we started having some, it’s ⁠still extremely rare. " Xi then added one name: "For example, Putin has been here." Trump's reply was immediate — "Good. I like it." The look on his face said it all: visibly flattered.

Anti-China commentators, finding little to criticize about the visit, resorted to fabrication. One claim held that President Xi wore shoes with padded heels to make him look taller. Word of these baseless rumors apparently reached Trump, because he went out of his way in a later interview to describe his impressions of Xi. He noted that Xi was exceptionally tall for a Chinese man. He then added: if Hollywood ever needed someone to play a Chinese leader, no one could match Xi Jinping.

If Trump's deference was striking, the posture of those behind him was even more so. At the welcome ceremony at the East Gate of the Great Hall of the People, America's most senior officials stood in a row. Behind them, a crowd of business leaders — with a combined market capitalisation of tens of trillions of dollars — lined up in the blazing sun, waiting for President Xi to come and shake their hands. Commentators were blunt: no country other than China has ever commanded such a scene.

Trump's China visit passed without confrontation, and the world exhaled. The analyses followed swiftly. American media was divided: admirers called Trump's approach pragmatic; critics said he conceded too much. The Times of India struck the sharpest note. Drawing on interviews with numerous American analysts, the paper offered one representative verdict: Trump's trip was America's "Suez Moment." Trump's statement that he is “not looking for traveling 9,500 miles to fight a war" for Taiwan, had raised widespread, serious questions about America's willingness to defend the island.

The conclusion was hard to avoid — the United States is no longer capable of making unilateral decisions that shape the world.

The Times of India, citing American analysts, concluded that Beijing emerged as the biggest strategic winner from Trump's visit. China demonstrated its standing as America's equal on the world stage. It also proved that the United States is increasingly constrained in its ability to counter Chinese power.

The "Suez Moment" analysts invoke refers to the Suez Crisis of 1956. Egypt nationalized the Suez Canal. Britain and France, alongside Israel, launched a military intervention. Both the United States and the Soviet Union opposed them fiercely, and Britain and France were forced to withdraw. Britain's inability to conduct major international affairs without American backing was laid bare for the world to see.

Over time, "Suez Moment" came to describe something larger — a pivotal turning point where an old order collapses and a new power rises. Today, the term frames a broader debate: the emerging world order in the wake of America's declining hegemony.

Trump's China visit makes one thing clear: the world has changed. America no longer calls the shots alone. But where China and the United States do find common ground, it will be very difficult for anyone else to challenge them.

Lo Wing-hung