Hong Kong aims to prioritize reform and livelihood improvement in 2025 to further revitalize its economy, while the central government has expressed firm confidence in the city’s development, welcoming global enterprises to share in the dividends.

Citing challenges ahead, local experts encouraged the city to strengthen business ties with non-Western countries and better leverage the nation’s favorable policies to boost regional economies.

In a social media post published on Wednesday, the first day of 2025, Hong Kong Chief Executive John Lee Ka-chiu revealed that the special administrative region government will focus on deepening reforms and strengthening domestic and international ties, further improving livelihoods and enhancing social harmony.

Describing 2024 as a “historic” year, Lee summarized Hong Kong’s achievements in safeguarding national security, increasing economic momentum and improving residents’ living standards.

He also highlighted significant projects set to make progress in 2025, including the Hong Kong park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone, which will formally begin operations this year. Lee hailed the development as a milestone in promoting Hong Kong’s bid to become a global innotech center.

The SAR government also plans to boost residents’ well-being through various measures in 2025, including establishing 9,500 new light public housing units and opening three more community living rooms. Additionally, the city’s first traditional Chinese medicine hospital will begin phased operations this year.

On Thursday, Foreign Ministry spokesperson Mao Ning expressed the nation’s optimism for Hong Kong’s future development and welcomed global businesses to invest in the city, sharing the fruitful results of the “one country, two systems” principle and the city’s progress.

Mao praised Hong Kong’s achievements in 2024, citing the city’s nearly 10,000 mainland and overseas companies and approximately 4,700 local startups by the end of the year, both reaching record highs. She also highlighted Hong Kong’s being recognized as the world’s freest economy in 2024 and its rise to third place globally as a financial center. The city saw an over 30 percent year-on-year growth in tourist arrivals, welcoming 44 million visitors last year.

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Citing challenges such as the global economic situation, geopolitical factors and the SAR government’s continued financial pressures, Lau Siu-kai, a consultant with the Chinese Association of Hong Kong and Macao Studies, a Beijing-based think tank, suggested the city reduce its economic reliance on Western countries and deepen collaboration with emerging economies in Southeast Asia and the Middle East.

He also advised Hong Kong to focus on cultivating new high-tech, high-value-added industries while boosting the competitiveness of traditional sectors.

Lawmaker Tan Yueheng, a Hong Kong member of the National Committee of the Chinese People’s Political Consultative Conference, described finance and inno-tech as crucial engines driving the city’s high-quality economic development.

Tan expressed hope that in 2025, more efforts can be made to implement the HK$10 billion ($1.29 billion) I&T Industry-Oriented Fund, announced in Lee’s 2024 Policy Address.

At the same time, he highlighted the challenges posed by Hong Kong’s aging population, urging the city to develop a more age-friendly economic system, including pension finance and financial inclusion, to ensure that finance — one of Hong Kong’s traditional strengths — can benefit those in need.

Tai Po district councilor Lo Hiu-fung urged the government to increase efforts in promoting telecommunications, medical care and transportation development in rural areas like Tai Po. He also encouraged local districts to explore ways to capitalize on the central government’s favorable policies and strengthen the promotion of distinctive travel resources to stimulate their economies.

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On New Year’s Eve and New Year’s Day, over 676,000 people visited Hong Kong, including 220,000 from the Chinese mainland. The city’s New Year’s Eve fireworks display at Victoria Harbour drew over 400,000 spectators.