CBN丨Hong Kong Chief champions free trade at Boao Forum

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

• John Lee champions free trade at Boao Forum and strengthens cooperation with Hainan in investment and ASEAN market expansion;
• Singapore's Deputy PM visited Baidu's Apollo park in Beijing.

Here’s what you need to know about China in the past 24 hours

Hong Kong Chief ExecutiveJohn Lee Ka-chiuon Tuesday championed free trade and multilateralism during theBoao Forum for Asia, branding the city as a land of opportunity amid rising global protectionism and highlighting its role as a vital gateway to the Chinese market.

Speaking at the Global Free Trade Port Development Forum, a highlighted subevent on the first day of the forum, Lee called on responsible economies to unite in a “changing world” by expanding free trade, streamlining customs clearance procedures and harmonizing standards.

As a founding member of theWorld Trade Organization(WTO), the SAR has long been a proponent of free and multilateral trade, Lee said. The city has signed investment agreements with 33 economies and free trade agreements with 21 economies, and is on track to join theRegional Comprehensive Economic Partnership(RCEP) — the world’s largest free trade pact.

Lee noted that Hong Kong was recently crowned the third-freest economy worldwide as well as the fifth-most competitive economy globally, which he attributed to the principle of “one country, two systems” that positions Hong Kong as a global city with both Chinese and international advantages.

“We will continue to join hands with our friends in Hainan to promote the vast opportunities and benefits that free trade and market liberalization can bring to the world,” Lee said.

Regarding Hainan as an ideal gateway leading to the vast market of the Southeast Asia, Lee said the move will also support Hong Kong’s bid to join the RCEP, a trade pact aimed at deepening regional ties between China, members of ASEAN, and other partners.

Lee added that Hong Kong and Hainan could share expertise on developing free trade port, zero-tariff policies, and ASEAN market expansion.

During the second day of his trip in Hainan, Lee signed a Memorandum of Cooperation with the southern island province, reflecting the superimposed advantages of the two regions. Lee noted that the deep cooperation will cover fields in economic and trade investment, finance, data flow, tourism, and talent exchange.

After listening to Lee’s speech, Pei Sai Fan, an adjunct professor at the National University of Singapore and Nanyang Technological University, noted the potential for greater cooperation between Hong Kong and Singapore as world-class free trade ports, despite competition.

“Singapore primarily focuses onASEAN, while Hong Kong mainly targets the mainland. Each region has its own advantages,” he said, adding that collaboration would benefit all parties.

GBA express

• Guangdong remained a prime destination for foreign investment during the beginning of the year, indicating that global enterprises continue to have a positive outlook on Guangdong and the Greater Bay Area, officials said at a news conference on Monday. Zhu Xiaojun, deputy director of the provincial commerce department, said the global production base attracted 3,484 new foreign-funded enterprises with an actual foreign investment of 23.31 billion yuan in the first two months, up 16.8 percent and 5.9 percent year-on-year, respectively, outperforming the national average and major economic provinces. Guangdong's manufacturing industry played an outsized role in growth, with used foreign investment jumped 34.5 percent to 7.41 billion yuan in January and February.
• The Hong Kong Monetary Authority (HKMA) is preparing to kickstart “Wealth Connect 3.0”, an enhancement of the cross-border mechanism for wealth-management products that would raise quotas and expand the product menu, according to its chief executive Eddie Yue Wai-man. The upgrade would also potentially expand the scheme to investors in regions of the mainland beyond the Greater Bay Area, Yue said at the HSBC Global Investment Summit in Hong Kong today.
• The Human Cell Lineage Atlas Facility (CLAF), a major scientific and technological infrastructure in China's 14th Five-Year Plan, officially commenced construction ontheGuangzhou International Bio Island on Tuesday.
• OPPO has recently inaugurated its largest sports health laboratory in Dongguan's Binhaiwan Bay Area. This facility aims to enhance hardware and software products through innovative health solutions.
• Shenzhen-based United Aircraft's TD550D coaxial uncrewed helicopter has secured type certification from China's aviation watchdog, marking the birth of the country's first airworthiness-certified unmanned helicopter system.
• Boao Forum for Asia 2025will hold the International Science, Technology and Innovation Forum in Hong Kong from June 6 to 7. The forum will focus on global innovation and technology and serve as a high-level international platform for collaboration and exchanges.

Industry and company news

• Pop Mart rose today after the Chinese toy maker reported that its net profit surged 186 percent to a record high of 3.4 billion yuan last year from the previous one, while its revenue more than doubled to 13 billion yuan.
• BMW will reportedly establish a comprehensive AI partnership with e-commerce giant Alibaba. The German carmaker will integrate Alibaba’s Qwen AI models into its next-generation autos for the Chinese market.
• CATL said it received regulatory approval from China’s securities watchdog to sell up to 220.17 million shares in Hong Kong, the company said in a filing late on Tuesday. The battery giant planned to raise at least US$5 billion in what could be the largest initial public offering in Hong Kong in four years.
• Haidilao's profit rose 4.6 percent to 4.7 billion yuan last year from the year before, while its revenue climbed 3.1 percent to 42.8 billion yuan, the Chinese hot pot chain said yesterday. It launched 62 new restaurants in 2024.
• Pony.AI closed down 8 percent in New York yesterday after the Chinese autonomous driving startup reported that its non-GAAP net loss widened nearly 30 percent to USD153.6 million last year from the previous one. Its revenue rose 4.3 percent to USD75 million.
• Apple Chief Operating Officer Jeff Williams visited the GoerTek's office in China's Qingdao on Monday, and then headed to the automated speaker production line and mold center located in Weifang, the Chinese acoustic components company said yesterday. GoerTek has been collaborating with Apple since 2010 over the assembly of AirPods, AirPodsMax, and HomePods.

Asia-Pacific highlights

• Singapore's Deputy Prime Minister Heng Swee Keat visited Baidu's unmanned driving test base, Apollo Park, in Beijing yesterday and met with founder Robin Li. "This is the future," Heng said after taking a test ride in the Chinese tech firm's 6th-generation robotaxi. Heng also welcomed the arrival of Apollo Go in Singapore.
• The Asia-Pacific Economic Cooperation summit 2025 hosted by South Korea will place artificial intelligence and demographic shifts at the forefront of the agenda for discussion — topics that have never before taken the spotlight at the regional economic forum. Yoon Seong-mee, chair of the 2025 APEC Senior Officials' Meeting, emphasized the urgency and significance of prioritizing cooperation on AI technologies and responding to population changes such as low birthrates and aging societies.

Voices of ASEAN

• In an interview with the 21st Century Business Herald at the ongoing Boao Forum for Asia, Erik Berglof, Chief Economist of the Asian Infrastructure Investment Bank (AIIB), emphasized the urgency of global cooperation on climate action despite rising geopolitical frictions. Berglof warned that the current geopolitical complexities have complicated discussions on climate change, underscoring the need for countries to unite in addressing this existential challenge. Berglof also praised China’s green development strides, noting the nation's experiences in sustainable development will be invaluable for other developing nations.He highlighted the AIIB’s focus on leveraging policy-based lending to finance climate projects, revealing that the bank successfully channeled funds into such initiatives last year.

Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI

Sound Editor: Stephanie LI

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

Produced by 21st Century Business Herald Dept. of Overseas News.

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