China talks to foreign business leaders on reviving HK economy

HONG KONG • China asked foreign business chambers in Hong Kong how to revive the isolated financial hub's economy, in unprecedented listening sessions weeks before new leader John Lee takes office, according to several people familiar with the matter.

The Liaison Office, Beijing's main body overseeing Hong Kong, sent invitations to commerce chiefs across the city early this month to seek their views on the challenges of operating in the city and mainland China, the people said. They said the chambers responded with one overriding message: End quarantine altogether as soon as possible.

The people, who represent different chambers, said the meetings marked a major shift from previous exchanges in which officials spoke through translators, with the Chinese side appearing to show genuine interest in understanding the pain points of foreign businesses.

The mainland officials present mainly listened while other staff took notes, the people said, making it unclear if Beijing will act on any of the suggestions.

One person who attended one of the meetings said that it was conducted in English, lasted 90 minutes and included Mr Wang Danfeng, a key member of the economic department.

Those invited were posed five questions, including one asking for "suggestions" or "advice" on how the Hong Kong government could improve the local business environment, and others that focused on operations in mainland China.

The Liaison Office did not respond to a request for comment.

The listening campaign came weeks before Mr Lee is due to take over as chief executive on July 1, and reflects China's increasing concern about poor economic data on both sides of the border.

Mr Lee inherits a financial hub that has been isolated due to its inability to open up to the world, in part due to the mainland's zero-Covid-19 policy.

Hong Kong's economy contracted 4 per cent in the first quarter, one of its worst performances in the past 30 years, and there has also been a departure of expatriate talent.

In recent months, Hong Kong has drifted away from the zero-Covid-19 stance, reducing incoming hotel quarantine from 21 days to seven for vaccinated travellers arriving in the city and resisting a move to impose social curbs despite a rebound in Covid-19 cases, with the number topping 1,000 daily.

In his first public comments on his pandemic policy, Mr Lee vowed this week to try to reduce inconveniences to travellers, while adding that he would need to do so "without bringing extra risk to the mainland".

His government will review mandatory quarantine measures for incoming travellers, he said.

Meanwhile, incoming health secretary Lo Chung-mau said he aims to reduce the quarantine period to five days, but that the city would stick to its "dynamic zero" approach to eliminate the virus.

BLOOMBERG