News analysis

Hong Kong innovation under threat in battle of giants

City's efforts may suffer as escalating Sino-US conflict extends beyond trade into knowledge

A robot on stage at a technology conference in Hong Kong in July. It is evident that the city relies on China for its economic well-being and to foster tech and innovation. The problem is that China is itself facing a host of problems, says the write
A robot on stage at a technology conference in Hong Kong in July. It is evident that the city relies on China for its economic well-being and to foster tech and innovation. The problem is that China is itself facing a host of problems, says the writer. For starters, its economy is in a "precarious" position, as a China observer has pointed out. PHOTO: AGENCE FRANCE-PRESSE
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Hong Kong's future lies precariously wedged between the United States and China, and as the escalating fight between the two giants extends beyond trade into knowledge, the city's efforts to innovate could suffer quite considerably.

As New York University's Professor Thomas Sargent noted in his address at a forum in Zhuhai last month, a nation's growth is driven by three key things - capital, labour and knowledge.

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A version of this article appeared in the print edition of The Straits Times on October 13, 2018, with the headline Hong Kong innovation under threat in battle of giants. Subscribe