Qiu Yinghui: Middle East warfare has limited impact on Hong Kong, government is committed to building a regional IP trading center.

The Director of the Hong Kong Trade and Economic Development Bureau, Edward Yau, said in an interview that trade between Hong Kong and the Middle East accounts for only 2% of the overall merchandise trade volume. The impact of Middle East conflicts on Hong Kong is limited, and he believes that Hong Kong still has the potential to maintain trade growth momentum this year. However, he also pointed out that rising energy prices have led to an increase in shipping costs. If these costs are passed on to buyers, it may weaken demand and put pressure on trade. In addition, geopolitical uncertainty, global trade unilateralism, and protectionist trends can also pose risks to Hong Kong's overall trade. He mentioned that Hong Kong's exports in the first two months increased by 33.8% and 24.7% respectively year-on-year, reflecting Hong Kong's status as an international trade center. There is further room for deepening trade with ASEAN and Northeast Asia, as well as actively expanding trade with emerging markets such as Kazakhstan, Uzbekistan, and Hungary, as well as other economies in Central Asia, Eastern Europe, and Africa. He also revealed that Uzbekistan hopes to establish a consulate in Hong Kong to deepen bilateral relations. He also mentioned that Hong Kong is striving to become a regional intellectual property (IP) trading center, with the government expanding the scale of IP trade and valuation. Consultations on IP tax deductions were completed at the end of last month, and a draft amendment to the legislation will be submitted to the Legislative Council within this year.