Hong kong Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in hong kong, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Market Challenges-Hong Kong & Macau
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Hong Kong 

National Security Law:  The imposition of the National Security Law (NSL) by Beijing in July of 2020 on Hong Kong and the Safeguarding National Security Ordinance (SNSO or “Article 23”) locally legislated in March 2024 have created risks to the business and investment climate that could affect Hong Kong’s long-term attractiveness as an international business hub. On September 6, 2024, the Department of State, along with the Department of the Treasury, the Department of Commerce, and the Department of Homeland Security, issued an updated advisory to U.S. businesses regarding these potential risks to their operations and activities in Hong Kong related to these laws as well as compliance with U.S. sanctions.  

Labor Market Shifts: Hong Kong’s labor force has experienced a downward trend since 2019, when the city experienced social unrest after introducing a bill that would have allowed the extradition of Hong Kong residents to mainland China.  The city’s working population dropped 0.2 percent year-on-year in 2019 and 1.7 percent in 2020.  In 2022, its labor force shrank by another 2.4 percent (or 94,100 people) to 3.78 million, its sharpest drop since 1985, according to official statistics. The declining labor force and outflow of talent can be attributed to structural factors including an aging population, low birth rates, and political factors such as the city’s strict Covid-19 policies and concerns related to the NSL. The labor pool is shifting in Hong Kong, with more new entrants to the market coming from mainland China than previously which may gradually reshape the composition of the workforce and influence employer recruitment strategies over the medium term. The vast majority of applicants for the Hong Kong government’s talent attraction schemes, particularly the Top Talent Pass Scheme (TTPS), are from mainland China.

The Hong Kong government is keenly aware of talent shortages and has put in place talent schemes aimed at attracting professionals to Hong Kong.  In December 2022, the Hong Kong government launched a quota-free Top Talent Pass Scheme to provides two-year visas to high-earning individuals and graduates from top 100 global universities.  The government also introduced a labor importation scheme in June to allow the entrance of up to 20,000 workers in the construction, aviation, and local transportation sectors. From December 2022 to June 2025, 94.7 percent of all approved applicants of Hong Kong’s Top Talent Pass Scheme came from mainland China, according to the Hong Kong Labor and Welfare Bureau.

Macau

Gaming and tourism eclipse other sectors: Macau’s GDP in 2024 rose 8.8 percent year-on-year to MOP403.3 billion (US$50.4 billion), fueled primarily by an influx of 35 million tourists that boosted the city’s gaming and tourism sectors. While Macau continues to diversify its gaming-centric economy through the “1+4” strategy – leveraging the core gaming and tourism sector to develop four emerging sectors: Chinese medicine, finance, technology, and Meetings, Incentives, Conventions, and Exhibitions (MICE) – progress has been slow. Despite this, non-gaming opportunities exist for U.S. firms in areas such as smart building, healthcare, themed entertainment, technology, and architecture and design services, as Macau’s six casino operators are required to invest at least MOP120.8 billion (US$15 billion) in non-gaming projects under the renewed ten-year concessions (2023–2033).

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

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