The Covid-19 pandemic has created a new context for widespread protectionism in global trade. This reinforces a conviction that it is time to move away from a laissez-faire business model, which opposes government interventions that limit individual choice, to a more state-managed economy. For months, the US-China diplomatic stalemate has left Hong Kong’s officials confused, powerless and indecisive. The complexities of a polarised international landscape make it immensely difficult for the city to plan. Moreover, health is taking precedence over wealth in a Covid-19 world. Many national leaders today are less willing to embrace laissez-faire as the only route towards prosperity and stability. The challenge of trade barriers is nothing new to Hong Kong. As a vital platform of China’s power projection, Hong Kong cannot hold on to the position of neutrality in the event of an external crisis. In this volatile environment, Hong Kong officials and business leaders are probing the dynamics of international trade diplomacy to get the best deals. Today, Chinese and Hong Kong exports to the US are subject to tariffs or some other restrictive requirements. These constraints have prompted local industries to adjust and adapt. With the loss of profit from the manufacturing sector, Hong Kong entrepreneurs are investing in biomedicine, social media technologies and real estate in the Pearl River Delta. Celebrating the 40th anniversary of the founding of Shenzhen as a special economic zone last week, President Xi Jinping called on the city to transform itself into a new global hi-tech and financial powerhouse. Effective planning across regional government bureaucracies is always a key to success. Even though infrastructural upgrades and environmental sustainability are at the top of the official agenda, Beijing has yet to launch a new trans-regional body to involve different interest groups, professional bodies and civic sectors in the decision-making process. Evidently, China’s export-driven, labour-intensive system of industrialisation is undergoing a structural change. To avoid losing its edge, Hong Kong must transform outdated businesses into hi-tech, knowledge-driven industries. Only by joining hands with Shenzhen can the city remain relevant in a competitive world. Joseph Lee, New York