Chinese New Year's reception

Good evening, everyone. Thank you for joining us to celebrate the arrival of Year of the Snake.

I’d like to give special thanks to our visiting musicians from the Arts with the Disabled Association Hong Kong – Yang Enhua, Hong Ting Laurina, and Ding Yijie – for sharing their artistry. They exemplify the perseverance and diversity of Hong Kong’s performing arts scene and the power of inclusion across the arts. I would also like to thank our friends at Cathay Pacific Airways who supported the musicians’ US tour.

Economy
The New Year brings measured optimism. Our economy grew at an accelerated pace in the fourth quarter. For 2024 as a whole, GDP increased by 2.5% over 2023. Looking ahead, we anticipate further progress in 2025 – a trend we’re excited to build on.

US-Hong Kong Relations
Hong Kong has long enjoyed a strong connection with the US. Nearly 1,400 US companies operate in Hong Kong. The US is one of our largest sources of foreign direct investment, with FDI flows reaching $90 billion. Hong Kong is also home to about 84,000 US citizens – one of our largest foreign communities.

We enjoy a mutually beneficial trade relationship. US goods exports to Hong Kong last year totaled nearly US$26 billion. Among your trading partners, the US enjoys one of its highest trade surpluses, valued at over US$21 billion.

Hong Kong continues to be a key market for US agricultural products, ranking 17th despite being a city of just 7.5 million people.

Breaking it down a bit, the US is our 2nd largest beef supplier, with exports valued at US$415 million. US beef commands a premium price thanks to its reputation as a safe and quality product. And bourbon? It’s booming. Hong Kong imports of US spirits grew 77%, with bourbon accounting for more than 2/3rds of total sales. We recently announced a reduction of the duty on imported alcoholic beverages. Hong Kong has a vibrant cocktail culture, with four of the top 10 bars in Asia. With a reduction in duties, there is strong potential for US whiskeys in Hong Kong.

International Recognition
Hong Kong ranks high in terms of its business environment, financial competitiveness, and free market policies. The World Bank ranked Hong Kong in the top 10 among 50 economies; the Global Financial Centers Index ranked the city 3rd globally; and Canada’s Fraser Institute ranked the city as the world’s freest economy.

Looking Ahead
To maintain this edge, we’re investing in our traditional pillar industries, while cultivating new growth areas.

Infrastructure
The recent commissioning of our Three-Runway System at the Hong Kong International Airport increases passenger and cargo flows and boosts interconnectivity, including with the US. Starting April 24th, Cathay Pacific Airways will launch nonstop service from Dallas-Fort Worth to Hong Kong, bringing us even closer together.

Financial Services
Hong Kong has stepped-up the competitiveness of its financial market with focused efforts on reform and innovation. Over 1,100 fintech companies are operating in Hong Kong, ranging from mobile payments to virtual asset trading. The pace of financial innovation requires our regulatory regime to be nimble. Our regulatory approach ensures market innovation while managing risks under the principle of “same business, same risks, same rules.”

International Events
Beyond business, Hong Kong offers unforgettable experiences for American visitors, including iconic events like Art Basel and the Clockenflap music and arts festival. Last year’s festival lineup included Jack White and St Vincent.

On the sports front, we are proud of our athletes’ achievements, including medals at the 2024 Paris Olympics and Paralympics – and with the completion of our Kai Tak Sports Park, we’re excited to host more international competitions in the future.

Conclusion
As we reflect on the decades-long partnership between the US and Hong Kong, I am grateful for all that we have achieved together. I hope we can continue to strengthen this important relationship in the years ahead.

I wish all of you a happy New Year, Kung Hei Fat Choi and Gong Xi Fa Cai.