Challenges and volatility will persist despite a renewed trade truce between the US and China, Hong Kong’s finance chief has warned, as he outlined his strategy to enable the city to navigate continued geopolitical uncertainties.

Advertisement

In a media interview last Friday, Financial Secretary Paul Chan Mo-po also revealed his goal for the city to overtake Switzerland as the world’s biggest asset and wealth management centre by 2027, as part of his plans to transform and diversify the economy in the remaining two years of his term.

China and the United States in mid-June agreed “in principle” on a framework to implement their trade truce after talks in London, with US President Donald Trump saying American tariffs would be set at 55 per cent to China’s 10 per cent.

But Chan said he expected uncertainty and volatility would be here to stay for Hong Kong.

“The geoeconomic segmentation and the US-China relationship will continue to be challenging in the coming years. There may be agreement for the short term, but there are bound to be ups and downs,” he said.

Advertisement

“We won’t underestimate the challenges arising from this tense relationship.”