Economy

Hong Kong’s Economic Strategy: How John Lee Plans to Navigate Headwinds and Boost Growth

John Lee outlined plans to boost Hong Kong’s economy, aiming for growth and better livelihoods.

September 17, 2025, 12:42 AM

An aerial view of the incredibly dense, high-rise urban landscape of Hong Kong, with Victoria Harbour and mountains in the distance.

A panoramic aerial view of the dense, iconic skyline of Hong Kong, featuring skyscrapers and Victoria Harbour. By Miami Daily Life / MiamiDaily.Life.

Executive Summary

Hong Kong leader John Lee’s policy address aims to bolster the city’s economy and improve public livelihoods, reaffirming its role as an international financial center and a platform for mainland Chinese enterprises.

Hong Kong’s open economy is grappling with economic headwinds from mainland China’s slowdown and persistent trade tensions between Beijing and Washington.

A key initiative highlighted in the address is the acceleration of the Northern Metropolis project, designed to provide homes for 2.5 million people and establish a new business district.

The Story So Far

Hong Kong’s leader, John Lee, is delivering this policy address against a backdrop of significant economic challenges, primarily driven by the broader economic slowdown in mainland China and persistent trade tensions between Beijing and Washington, which disproportionately affect the city’s open economy. His strategic plan aims to bolster the financial hub’s economy and improve public livelihoods, while also reinforcing its role as an international financial center and a crucial platform for mainland Chinese enterprises, aligning with Beijing’s national efforts to stimulate growth.

Why This Matters

John Lee’s latest policy address signals Hong Kong’s determined effort to counter external economic pressures, such as mainland China’s slowdown and US-China trade tensions, by reinforcing its role as a global financial hub and a vital link for Chinese enterprises. This strategic direction aims to bolster the city’s economic resilience, while also committing to significant internal development projects like the Northern Metropolis and prioritizing improvements in public welfare, including housing and income, to enhance residents’ quality of life.

Who Thinks What?

Hong Kong leader John Lee believes the city’s economic strategy should focus on reinforcing its role as an international financial center and a crucial platform for mainland Chinese enterprises, while also enhancing residents’ quality of life through initiatives like better housing and higher incomes.

Beijing views Hong Kong’s policy address as aligning with its broader national efforts to stimulate economic growth and counter sluggish consumer demand.

Hong Kong leader John Lee delivered his fourth policy address on Wednesday, outlining a strategic plan to bolster the financial hub’s economy and improve public livelihoods. The address comes as the city grapples with the broader economic slowdown in mainland China and persistent trade tensions between Beijing and Washington, impacting its open economy.

Hong Kong’s Economic Outlook and Role

Lee, a former deputy head of police, reaffirmed Hong Kong’s economic growth forecast of 2% to 3% for 2025. He stated that authorities would work to reinforce the city’s role as an international financial center and a crucial platform for mainland Chinese enterprises seeking global expansion.

The leader emphasized that his “ultimate objective” was to enhance the quality of life for residents. This includes securing better housing, higher incomes for workers, improved care for the elderly, and greater prospects for young people.

Addressing Economic Headwinds

Hong Kong’s unique position as a small, open economy makes it particularly susceptible to external economic pressures. The ongoing economic deceleration in mainland China, coupled with geopolitical factors such as trade disputes between Beijing and Washington, has created ripple effects across the city’s markets.

The policy address aligns with Beijing’s broader national efforts to stimulate economic growth. This push is particularly focused on countering sluggish consumer demand and overall economic expansion.

Key Development Initiatives

A key initiative highlighted by Lee is the acceleration of the Northern Metropolis project. This ambitious development aims to provide homes for approximately 2.5 million people and establish a new business district near the border with mainland China.

Outlook on Hong Kong’s Economic Strategy

Lee’s latest policy address underscores Hong Kong’s commitment to navigating current economic headwinds by focusing on both internal development and its strategic role as a gateway to mainland China. The initiatives aim to fortify the city’s economic resilience and enhance social welfare amidst regional and global challenges.