Beijing, 10 September 2025 – China has renewed its commitment to building a unified free-trade zone that links the mainland with Hong Kong and Macau, a long-discussed plan that Beijing believes will deepen economic integration and strengthen the region’s competitiveness at a time of shifting global trade dynamics.
Speaking at the Belt and Road Summit in Hong Kong, Vice-Minister of Commerce Yan Dong said the central government is determined to accelerate cooperation between the three customs territories. He described the effort as a cornerstone initiative that would allow China to draw on the comparative strengths of Hong Kong and Macau while providing new platforms for the mainland’s growth agenda.
According to Yan, the proposed framework will focus heavily on facilitating smoother trade and investment across borders, particularly in sectors where collaboration is most immediate and commercially impactful. These include finance, construction, and tourism, industries where Hong Kong and Macau already play vital roles and where integration with the mainland could unlock new economies of scale. He emphasized that creating a free-trade zone was not merely about lowering tariffs, but about aligning policies, regulations, and business practices so that the three economies can function more seamlessly together.
The vice-minister also underscored Hong Kong’s bid to join the Regional Comprehensive Economic Partnership (RCEP), Asia’s largest trade pact, which currently covers 15 economies. Beijing, he said, will provide “full support” for Hong Kong’s accession, arguing that the move would widen the city’s global trade networks and further cement its position as an international hub for finance, shipping, and commerce. The support reflects Beijing’s wider strategy of positioning Hong Kong not only as a window for foreign capital but also as a key participant in the region’s evolving trade architecture.
In his address, Yan highlighted that Hong Kong’s participation in mainland-led infrastructure projects would be an essential component of the plan. He pointed to the Belt and Road Initiative as a platform where Hong Kong’s expertise in project financing, legal services, and risk management could complement the mainland’s engineering capacity and construction scale. By combining these strengths, enterprises from both jurisdictions would be better equipped to compete for overseas projects, particularly in emerging markets where demand for infrastructure remains strong.
The Ministry of Commerce is also encouraging Hong Kong firms to expand their roles in providing high-end professional services that are critical for global projects. Legal counsel, arbitration, and insurance were singled out as areas where the city’s service providers could add immense value. This, officials argue, will not only boost Hong Kong’s own service economy but also raise the overall competitiveness of Chinese enterprises seeking to expand abroad.
The vision for a unified free-trade zone with Hong Kong and Macau is not new, but Yan’s remarks signal that the plan is regaining momentum after years of uncertainty. Analysts note that China’s leadership is increasingly looking to regional integration as a way to buffer against external risks, particularly trade frictions with the West and global economic headwinds. By drawing Hong Kong and Macau closer to the mainland’s policy orbit, Beijing hopes to create a more resilient economic bloc that can adapt to global volatility while capitalizing on Asia’s long-term growth trajectory.
For Hong Kong, the opportunity lies in leveraging its established role as a trusted global business hub. As it seeks new growth engines in a changing world economy, greater alignment with the mainland and entry into RCEP could help diversify its trade flows and solidify its relevance in the region’s supply chains. For Macau, the emphasis on tourism and services suggests that it too will have a stake in the integration, albeit from a different economic angle.
Ultimately, the success of the plan will hinge on how effectively the three territories can harmonize regulations and reconcile their different economic systems. While challenges remain, Beijing’s renewed push signals that the free-trade vision remains firmly on the agenda.
The Ledger Asia will continue monitoring these developments closely as China advances its long-term strategy of economic integration with Hong Kong and Macau, a process that could reshape the region’s trade and investment landscape for decades to come.
