The Consulate General of Switzerland in Hong Kong

US, China agree to slash tariffs in trade war de-escalation after talks in Geneva
The United States and China announced Monday an agreement to drastically reduce tit-for-tat tariffs for 90 days, de-escalating a trade war that has roiled financial markets and raised fears of a global economic downturn. HKFP, May 12

Australia’s Queensland to open Shenzhen trade office with Hong Kong as ‘gateway’
Queensland will open a trade and investment office in Shenzhen to strengthen ties with mainland China and Hong Kong. Finance and Trade Minister Ros Bates, leading a trade mission, called Hong Kong a “gateway” for trade and highlighted opportunities in infrastructure, healthcare, and clean energy. She reaffirmed that Queensland is “open for business.” SCMP, May 16

US sanctions Chinese, Hong Kong firms for aiding Iran’s missile programme
The United States on Wednesday unveiled fresh sanctions against six people and 12 firms — including several based in China and HK — for their support of Iran’s ballistic missile program. HKFP, May 15

Hong Kong and UAE Strengthen Customs Cooperation to Boost Trade Efficiency
Hong Kong Customs and the United Arab Emirates Customs Authority have advanced two key agreements aimed at enhancing bilateral trade. In meetings on April 23-24, both sides moved closer to finalizing a Customs Co-operative Arrangement and an Authorised Economic Operator Mutual Recognition Arrangement. These agreements are set to streamline cross-border trade while upholding strong security standards, reinforcing cooperation between the two trade hubs. The Standard, May 2

Hong Kong Media Targeted Amid Press Freedom Decline
Hong Kong authorities have launched coordinated tax audits against independent media and their families, seen by watchdogs as intimidation. This follows Hong Kong’s drop to 140th in the 2024 Press Freedom Index, placing it alongside mainland China in the “red zone.” Despite state media dismissing the rankings, rising censorship and funding cuts have led to layoffs and closures at outlets like Radio Free Asia. HKFP 1, HKFP 2, SCMP, HKFP 1, HKFP 2, HKFP 3, May 2, 3, 6, 7,21, 22

Hong Kong Enacts Article 23 Laws Amid Ongoing National Security Trials
Hong Kong’s government fast-tracked new subsidiary legislation under its local security law, Article 23, which Chief Executive John Lee says provides “legal certainty” against national security threats. This move comes as the High Court granted bail to Kwok Yin-sang, father of wanted pro-democracy activist Anna Kwok, pending his trial on charges related to handling her financial assets under national security laws. Meanwhile, Joseph John (also known as Wong Kin-chung) has filed an appeal against his five-year sentence for ‘conspiring to incite secession,’ highlighting ongoing judicial activity connected to the city’s tightened security regime. HKFP 1, HKFP 2, May 20

Beijing’s Patriotism Call Hits Hong Kong Firms as Security Law Tightens
Xia Baolong urged Hong Kong businesses to unite with patriotism amid sanctions, a message seen as a “wake-up call” for firms like CK Hutchison amid the Panama ports issue. Meanwhile, Hong Kong fast- tracked new security laws, including jail terms for revealing Beijing’s national security probes, citing rising geopolitical tensions. Authorities say the laws are necessary for stability, dismissing claims they target specific cases. SCMP 1, The Standard, SCMP 2, HKFP 1, HKFP 2, May 13, 14

Government fast-tracks subsidiary security law amid geopolitical tensions
On May 13, HK has enacted new laws under its homegrown security legislation, incl. the imposition of a max jail term of 7 years for disclosing investigations by Beijing’s national security office and designation of premises associated with the Office for Safeguarding National Security, which is part of Beijing’s Central People’s Government, as “forbidden.” The government gazetted a subsidiary legislation to its domestic security law, with new regulations taking effect the same day. A government spokesman explained that the law had to be enacted as soon as possible due to potential unforeseen circumstances amid escalating geopolitical tensions. Commentators attributed the new law to the uncertainty around escalating US-China tensions and a ‘relatively muted society.’ Pro-Beijing commentators dismissed rumours that the law targets ongoing high-profile cases. SCMP, HKFP, May 13

HK proposes new mechanism to allow Beijing to exercise jurisdiction over national security cases
Hong Kong authorities have proposed establishing a mechanism to allow mainland China to exercise jurisdiction over national security cases, building on an article in the Beijing-imposed national security law stating that “complex” cases can be prosecuted across the border. HKFP, May 12

Hong Kong minimum wage rises as use of pension funds for severance pay ends
Hong Kong has raised its statutory minimum wage to HKD 42.10 (USD 5.37), coinciding with the official end of a controversial arrangement that allowed firms to dip into pension funds for severance payments. The 5.3% increase from HKD 40 (USD 5.10) in hourly base pay took effect on Thursday, when Hong Kong marked the annual International Labour Day. HKFP, May 2

Hong Kong Strengthens Position as Top Capital Raising Hub for Chinese Firms
Financial Secretary Paul Chan emphasized Hong Kong’s role as the premier platform for leading Chinese companies to raise capital and expand internationally. Highlighting the recent debut of Chinese EV battery giant CATL’s IPO—the largest global offering this year—Chan noted that Hong Kong climbed to second place in global IPO rankings. CATL’s listing raised HK$35.7 billion (€4.05 billion), attracting significant European asset management interest. Meanwhile, fast-fashion retailer Shein is targeting a Hong Kong listing after regulatory hurdles in London. To further support innovation-driven firms, the Securities and Futures Commission and Hong Kong Exchanges launched a ‘Technology Enterprises Channel,’ offering tailored guidance and confidential filing options for tech and biotech IPO candidates. Additionally, Hong Kong is advancing efforts to become an international data-trading hub by strengthening ties with mainland China and Southeast Asia, even as local lenders like Hang Seng Bank navigate a challenging economic climate. SCMP 1, The Standard 2, Reuters 1, Bloomberg, The Standard 2, Reuters 2, SCMP 2, May 7, 18, 20, 29

Hong Kong’s Credit Ratings Stable Despite Pension Fund Risks
S&P and Moody’s confirmed Hong Kong’s strong credit ratings, with Moody’s upgrading the outlook to ‘stable’. The government cited this as a sign of resilience amid global uncertainty. However, Moody’s downgrade of US debt poses risks for Hong Kong’s pension funds, which may need to reduce US Treasury holdings due to investment rules tied to credit ratings. Bloomberg, China Daily, May 21, 28

AXA among first to apply for HK company re-domiciliation regime
On May 23, Hong Kong launched a company re-domiciliation regime that allowed firms incorporated overseas to apply to relocate to the city while maintaining their legal identity and business continuity. On the same day, French insurance giant AXA’s Hong Kong and Macao arm announced its plan to re-domicile AXA China Region Insurance Company (Bermuda) from Bermuda to Hong Kong under the new company re-domiciliation regime. The Standard, SCMP, May 23

Unemployment rate hits 2-year high of 3.4%
HK’s unemployment rate rose by 0.2 percentage points to 3.4% and hit its highest point in more than two years, with the construction and financing sectors notably affected, a trend experts expect to persist through to the end of 2025. SCMP, May 20

New corporate investments in Hong Kong nearly double in first 4 months
A total of 223 firms have invested over HK$20 billion (€2.26 billion) in the city in the first four months of this year, nearly doubling the amount of investments attracted in the same period in 2024, according to government data. China Daily, The Standard, May 7

Chinese MFA rejects ‘false claims’ on CK Hutchison ports deal
On May 6, China's Foreign Ministry Spokesperson Lin Jian described recent reports that CK Hutchison received permission to sell its global port assets other than those along the Panama Canal as ‘unfounded’. People’s Daily, May 7

Hong Kong restrains local dollar’s rise for second time in three days
The Hong Kong Monetary Authority has stepped in for the second time within three days to maintain the local currency’s peg to the US dollar after the Hong Kong dollar hit the strong end of its trading band. The city’s de facto central bank sold HK$9.5 billion (€1.08 billion) worth of the local currency and bought US$1.23 billion (€1.08 billion) at HK$7.75 per US dollar on May 5, according to an HKMA statement. (The city’s currency has been pegged to the US dollar since 1983. Under the current system, in place since 2005, the HKMA intervenes to maintain the currency within a narrow band of HK$7.75 to HK$7.85 per US dollar.) SCMP, May 5

Hong Kong Seeks US Tech Talent and Welcomes Harvard Students Amid Geopolitical Shifts
Hong Kong is actively attracting tech talent from the US to boost its data industry and become a global data-trading hub, leveraging ties with mainland China and Southeast Asia. Financial Secretary Paul Chan revealed over 200,000 new arrivals through a successful talent scheme, highlighting the city’s focus on AI- driven growth. Meanwhile, following the US ban on Harvard’s enrollment of international students, Hong Kong’s Education Bureau urged local universities to support affected students. The Hong Kong University of Science and Technology (HKUST) has opened its doors to international Harvard students, offering them a pathway to continue their studies in Hong Kong. HKFP, The Standard 1, The Economic Times, The Standard 2, SCMP, May 23, 26, 28

Hong Kong to cut subsidy scheme for families waiting for public housing, despite NGO’s call
Hong Kong authorities have said they will not extend a trial subsidy scheme for people waiting for public housing, despite warnings from an NGO that ending the benefits would impose a financial burden on the poor. HKFP, May 26

Annual Hong Kong book fair bans three exhibitors ‘without explanation’
The Trade Development Council – organiser of Hong Kong’s annual book fair – banned at least three publishers and stores from this summer’s edition (16-22 July) without explanation. Two of them believed their applications were rejected because they previously sold titles which the organiser later asked them to remove. Separately, activist Chow Hang-tung dropped a judicial review case to challenge the Correctional Services Department’s decision to ban four books in jail, including titles concerning the 4 June crackdown in 1989, according to a report published by Taiwan’s Central News Agency reported on 8 May. Chow’s mother earlier tried to send the four books to Chow, who remains under custody. SCMP, CNA, May 12

EU Ambassador Pledges Strong Ties with Macao at Europe Day Reception
On May 22, Ambassador Harvey Rouse, Head of the EU Office to Hong Kong and Macao, reaffirmed the EU’s commitment to maintaining strong ties with Macao during a Europe Day reception. He emphasized that the EU will continue addressing concerns constructively and respectfully, highlighting the EU’s role as a key economic partner—accounting for 27% of Macao’s trade last year and being a major investor. Ambassador Rouse also stressed the EU’s support for a rules-based international order and its steadfast backing of Ukraine amid the ongoing conflict. The event was attended by Macao’s Secretary for Administration and Justice, Cheong Weng Chon, and China’s MFA Deputy Commissioner in Macao, Sun Xiangyang. Macau Post Daily, Macau Business, Macao Government, TDM Macao, May 23

Macao, France sign agreement to boost scientific research cooperation
On 8 May, Macao and France signed an agreement to strengthen cooperation in scientific research and promote innovation and talent development. The agreement set out a plan to collaborate on scientific research projects, organise seminars and workshops, and facilitate exchanges between researchers and technical experts of mutual interest. China Daily May 12

Visitor number surges during Labour Day holiday, breaking post-pandemic records
Macao’s tourism sector enjoyed a significant boost during the recent Labour Day holiday, with over 757’000 visitors recorded in the first four days of the period, with 80% hailing from mainland China, where people enjoyed a five-day break. The figure represents a 42.3% increase compared to the same period last year. Meanwhile, Hong Kong received 913’000 mainland tourists in the five-day break, representing a 19.2% year-on-year jump. Macao News, May 6

SPECIAL FOCUS 1 - Ignazio Cassis presents Swiss policy of good offices in Hong Kong

Swiss Federal Councillor Cassis Highlights Mediation in Hong Kong
On May 30, Swiss Federal Councillor Ignazio Cassis attended the launch of the International Organization for Mediation (IOMED) in Hong Kong. He emphasized Switzerland’s neutrality and mediation expertise, highlighting Geneva’s role in facilitating high-level talks. Cassis also met with Chinese Foreign Minister Wang Yi to discuss trade and global challenges, and with Hong Kong Chief Executive John Lee to strengthen economic ties and discuss rights issues. Hong Kong is Switzerland’s third-largest trading partner in Asia. Press Release, May 30

Establishment of the International Organisation for Mediation (IOMED) Ceremony
China officially signed the Convention on the Establishment of the International Organisation for Mediation (IOMED) on May 30 in Hong Kong, marking a major step in global dispute resolution. Headquartered in Hong Kong, IOMED is intended to rival top international legal bodies such as the International Court of Justice. Chinese Foreign Minister Wang Yi attended the ceremony alongside nearly 60 country representatives and officials from around 20 international organisations, including the United Nations. He described IOMED as a “new option” for peaceful dispute resolution. Hong Kong Chief Executive John Lee said the new organisation would enhance the city's international status and create local opportunities, noting its standing would be comparable to that of courts in The Hague. IOMED reflects China’s push to play a larger role in global governance through dialogue and mediation. HKFP, RTHK SCMP 1, The Standard 1, The Standard 2, SCMP 2, May 28, 30

Trump tariff tensions test Southeast Asian leaders at regional summit
Southeast Asian leaders will express deep concern over US President Donald Trump’s tariff blitz when they meet at a summit Monday, warning that the unilateral move poses huge challenges to economic growth and stability in the region. HKFP, May 26

Hong Kong exports up in first quarter amid businesses’ preemptive moves to beat US tariffs
Hong Kong’s exports rose in the first quarter of this year, as businesses raced to preempt US tariffs before they came into force, the city’s transport and logistics minister has said. Mable Chan, secretary for transport and logistics, said during a legislative meeting on Wednesday that Hong Kong’s air exports rose by 3.2 per cent. HKFP, May 21

US slashes tariffs on small parcels from Hong Kong, mainland China
The US has announced it is slashing the tariffs on small packages shipped from Hong Kong and mainland China amid a de-escalation of the trade war between the world’s two biggest economies. HKFP, May 14

Hong Kong businesses can ‘breathe a sigh of relief’ as US and China agree on tariff pause
As the US and China agreed on May 12 on a tariff pause, Hong Kong lawmaker Jeffery Lam – who represents the business functional constituency – believed that local businesses people can now work on securing orders for the Christmas season. Meanwhile, Hong Kong Shippers’ Council Chairman Willy Lin pointed out that the US has not wrapped up the trade negotiations with countries like Vietnam and Cambodia. Hence, it is too early to conclude the impact of the US tariff on the Chinese market. Separately, starting from May 14, the US would cut the low value ‘de minimis’ tariff on China shipments, including those from HK, to 54% from 120%, with a flat fee of US$100 (€88) to remain. Ming Pao, May 13

Lawmakers unanimously pass non-binding motion seeking unity against Trump tariffs
On May 8, lawmakers unanimously passed a motion calling for unity in countering US tariffs. Lawmaker Starry Lee – who is also Hong Kong’s sole delegate to China’s Standing Committee of National People’s Congress – called on tycoon Li Ka-shing’s CK Hutchison not to go ahead with selling its global ports network. SCMP, May 8

Hong Kong’s freight forwarding industry takes hit from trade war
Hong Kong’s freight forwarding industry is suffering collateral damage from an intensifying tariff war between China and the United States. For example, in the week starting May 5, 41% of container capacity scheduled from Hong Kong to North America’s west coast were cancelled. Separately, in an interview published on May 2, Pauline Ngan – a former deputy to the National People’s Congress and a vice- chairman of a headwear manufacturer – admitted that China may lose the status as the world’s largest manufacturer. She explained that the US remains the largest consumer in the world, ‘without the US market, how can one scale up? The European market is not substantial enough.’ SCMP, May 5

This is a review of the Hong Kong media and does not necessarly represent the opinion of the Consulate General of Switzerland. The Consulate General of Switzerland in Hong Kong does not bear any responsibility for the topicality, correctness, completeness or quality of the information provided. Liability claims regarding damage caused by the use of any information provided, including any kind of information which might be incomplete or incorrect, will therefore be rejected.

31.5.2025