Hong Kong's Electronics Exports Expected to Thrive Amid AI Demand

Hong Kong's electronics exports are anticipated to perform strongly this year due to the growing global demand for AI-related products. According to RTHK, Hong Kong Industrial Association Honorary President, Zhuang Zixiong, reported that last year's electronics exports increased by 18.6% year-on-year, reaching over 3.9 trillion yuan. In the first two months of this year, exports rose by 34.1% to 709.6 billion yuan, with exports to Mainland China and ASEAN countries growing by 34% and 37%, respectively. Zhuang noted that recent geopolitical tensions in the Middle East and U.S. tariff policies have introduced uncertainties. However, the industry is experienced in managing such challenges and has received numerous inquiries and orders, which he attributes to the stable supply chains in Hong Kong and Mainland China. European countries are increasingly seeking collaboration opportunities with Hong Kong and other Asian regions. He also mentioned that rising oil prices have led to increased costs for raw materials like plastics, potentially affecting consumer demand. Manufacturers are expected to raise prices in response, but the impact is not anticipated to be significant. Meanwhile, Hong Kong Trade Development Council Deputy Vice President, Gu Jingmin, commented on the recent jewelry exhibition coinciding with the outbreak of Middle Eastern conflicts. Although some buyers were unable to attend due to flight disruptions, the exhibition still saw enthusiastic participation. With flights gradually resuming, she is optimistic about the future of Hong Kong's exhibition industry, considering Hong Kong and Mainland China as safe places for business. Gu Jingmin also noted that Hong Kong's exports to the Middle East account for 1.8% of total exports. Despite the relatively small trade volume, exports grew by over 34% from 2019 to last year. She remains cautiously optimistic about the future economic and trade connections between Hong Kong and the Middle East.