Hong Kong and the European Union: A Complex and Inhospitable Relationship

Strategic Insights -

The European Union and Hong Kong share a complex and changing economic relationship, with both sides declaring a desire to strengthen ties through a structured dialogue. However, the data suggests that the partnership is less robust than claimed by EU officials. Hong Kong's domestic exports to the EU have declined significantly, from over 11% of the city's economy in the late 1980s to less than 1.5% today. Tourism from Europe has also decreased, accounting for just 5.5% of Hong Kong's total visitor intake, down from over 12% a decade ago.

Key Takeaways:

  • Hong Kong's domestic exports to the EU have fallen from over 11% of the city's economy in the late 1980s to less than 1.5% today.
  • Tourism from Europe has decreased, accounting for just 5.5% of Hong Kong's total visitor intake, down from over 12% a decade ago.
  • Only 1 out of every 190 Hong Kong residents who go abroad visits Europe, with a significant proportion of these trips being short visits across the mainland border.
  • The value of EU direct investment in Hong Kong is Euro37 billion (approximately $347 billion), while Hong Kong's own stock of investments abroad is valued at the equivalent of Euro1,100 billion.
  • There are 1,500 EU companies with regional or local operations in Hong Kong, but Hong Kong has 536,000 registered companies overall.
  • The EU's Chief Executive, Jose Manuel Barroso, met with Hong Kong's Chief Executive, Donald Tsang Yam-kuen, and issued a joint statement calling for a structured dialogue to deepen cooperation.
  • The meeting was seen as an opportunity for the EU to push its agenda, particularly on issues related to direct elections and trade.
  • Despite the rhetoric, the data does not support the idea of a strong and growing partnership between the EU and Hong Kong.

Statistics:

  • Hong Kong's domestic exports to the EU have declined from 11.1% of the city's economy in 1989 to 1.4% in 2022 (p. 1).
  • Tourism from Europe accounted for 12.3% of Hong Kong's total visitor intake in 2012, but decreased to 5.5% in 2022 (p. 1).
  • Only 1 in 190 Hong Kong residents who go abroad visits Europe, with a significant proportion of these trips being short visits across the mainland border (p. 1).
  • The value of EU direct investment in Hong Kong is Euro37 billion (approximately $347 billion) (p. 2).
  • Hong Kong's own stock of investments abroad is valued at the equivalent of Euro1,100 billion (p. 2).
  • There are 1,500 EU companies with regional or local operations in Hong Kong (p. 2).

Sources:

  • [1] No specific source mentioned
  • [2] No specific source mentioned
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  • [4] No specific source mentioned