UK is keen to do business with Hong Kong, while standing up for British values and interests

From sustainability to fintech, there is much for the two economies, which share strong economic and financial ties, to collaborate on
The British government is ready to engage constructively with Beijing and Hong Kong where interests converge, while remaining committed to the UK’s values

Dominic Johnson

Published: 8:15am, 9 May 2023

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The United Kingdom’s ties with Hong Kong run deep, not only in our shared history and the connection between our people, but in business and our desire to succeed. This city in the heart of Asia is a commercial powerhouse with so much to offer on the global financial stage.

So much of Hong Kong’s commercial success and economic strength can be attributed to its “high degree of autonomy”, as outlined in the Sino-British Joint Declaration. Yet that autonomy is under untold pressure. Rights and freedoms, vital to any successful and prosperous economy, have been undermined.

I am here this week to meet the city’s leading investors and Hong Kong government officials to capitalise on its commercial success and build on our burgeoning investment relationship, which is already worth nearly £94 billion (US$118 billion)

As the first UK minister to visit the city in five years, this is an opportune time to reinforce our willingness to engage with Hong Kong – and indeed China – where our interests converge to preserve a positive relationship which delivers for the British people.

The UK and Hong Kong share strong economic and financial ties, benefiting from significant overlap in how we organise and regulate our open business environments. This puts investors at a great advantage, able to quickly and easily move capital between our economies to where it can generate the greatest economic growth.

There are real opportunities in clean growth and sustainability alone, which are reflected across a variety of sectors, including financial services, professional services, energy, transport and infrastructure, all of which the UK excels in.

On fintech, Hong Kong has shared the UK’s rapid growth, seeing its number of fintech firms rise from 180 to a remarkable 800 in just five years. Meanwhile, the UK secured 13.5 per cent of all global investment into fintech in 2022, second only to the US and more than all the rest of Europe combined.

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Investors interested in the UK will also find we offer incentives around access to finance, tax measures, innovation and research. This offer extends to our domestic and international talent pools, which benefit greatly from proximity to three of the world’s top 10 universities.

Having spent over 27 years as an investor, I came into government understanding the need to liberate capital and offer meaningful investment incentives.

Looking at our recent track record on attracting investment, I am proud as we have been able to push through the post-EU exit financial liberalisation encapsulated in the Edinburgh Reforms and are currently working on the Financial Services and Markets Bill.

These reforms are crucial to improve the competitiveness of the UK’s financial services while building on the foundations that have made the UK a world leader in the sector: agility, openness and consistently high regulatory standards.

We are confident the UK remains a competitive, open and attractive investment environment, and we are determined to be the undisputed leading investment destination in Europe. That’s why, this autumn, we are showcasing the best of Britain to the world’s leading investors at the Global Investment Summit 2023.

Having brought in nearly £10 billion of investment on the first day of the inaugural event in 2021, I expect this to be one of the great global conferences this year.

Offices are seen at Canary Wharf in central London in August 2020. The UK offers incentives around access to finance, tax measures, innovation and research. Photo: EPA-EFE

Last month, I began a constructive dialogue with Christopher Hui Ching-yu, Hong Kong’s secretary for financial services and the treasury, on the continued importance of Hong Kong as an international financial centre.

My visit marks the opportunity to create new sources of capital and boost our investment partnership.

Through British Prime Minister Rishi Sunak’s Integrated Review Refresh, we have set the direction across government for a consistent, coherent and robust approach to China.

The UK will continue to engage robustly and constructively with China and Hong Kong where our interests converge. We will also stand up for our values and be clear about our right to act when Beijing breaks its international commitments or abuses human rights.

The UK will not look the other way on Hong Kong, and we will not duck our historic responsibilities to its people. As a co-signatory to the Joint Declaration, we will continue to stand up for the people of Hong Kong, to call out the violation of their freedoms, and to hold China to their international obligations.

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A prosperous Hong Kong is good for China, the UK and the world. The most effective way to protect Hong Kong’s way of life and the best path to long-term prosperity is through respect for fundamental rights and freedoms, access to justice and genuine political participation by the full breadth of Hong Kong’s society.

Through the efforts of our governments, and my visit, we are boosting our investment partnership whilst standing up for UK values and interests.

Let us seize this moment to create the jobs of the future, drive economic growth and strengthen our people-to-people links.

Lord Dominic Johnson of Lainston CBE is the minister of state in the UK Department for Business and Trade