US President Donald Trump’s decision to extend the tariff truce with China for another 90 days is a pragmatic acknowledgment of economic realities. While this temporary reprieve offers breathing room for continued negotiations, the Hong Kong Special Administrative Region’s remarkable economic trajectory demonstrates that the city’s prosperity is not tethered to the whims of Washington’s trade policies.

The extension, citing China’s “significant steps” toward addressing trade imbalances, reflects progress in bilateral discussions. Yet as Hong Kong’s markets responded with characteristic steadiness — the Hang Seng Index barely budging — it revealed a deeper truth: The city’s economic resilience transcends any single trade relationship.

Consider Hong Kong’s recent economic performance. The city’s GDP expanded 3.1 percent year-on-year in the second quarter of 2025, marking the 10th consecutive quarter of growth. This isn’t statistical noise; it represents fundamental strength. Total exports surged 11.5 percent, while 24 million visitors graced the city in the first half of 2025 alone. These figures paint a portrait of an economy firing on multiple cylinders, not one anxiously awaiting US policy decisions.

The International Institute for Management Development’s latest rankings tell an even more compelling story: Hong Kong has ascended to become the world’s third most competitive economy, jumping two places and achieving its highest position since 2019. It ranks second globally in both government efficiency and business efficiency. These accolades weren’t bestowed because of US tariff policies but despite the global uncertainty they create.

Hong Kong’s financial markets exemplify this independence. By the end of July, Hong Kong’s stock market capitalization had soared 44 percent year-on-year to HK$44.9 trillion ($5.72 trillion). The city has emerged as the global leader in IPO fundraising, with HK$127.9 billion raised this year, representing an increase of 611 percent. When companies like AXA and Manulife announce plans to re-domicile to Hong Kong, they’re voting with their feet for the city’s regulatory environment, tax efficiency, and strategic position — not making bets on US-China trade relations.

The Office for Attracting Strategic Enterprises has successfully drawn over 80 strategic enterprises to establish operations in Hong Kong, bringing HK$50 billion in investments and creating 20,000 jobs. These companies aren’t coming for access to US markets through Hong Kong; they’re coming for Hong Kong itself — for its rule of law, talent pool, and position as the gateway between East and West.

Singapore offers an instructive parallel. Despite facing similar geopolitical headwinds, the Lion City has thrived by positioning itself as a neutral hub for global business. Like Singapore, Hong Kong must leverage its unique advantages: The “one country, two systems” framework provides unparalleled access to the Chinese mainland while maintaining the international standards global businesses demand.

The Belt and Road Initiative presents opportunities that dwarf any bilateral trade arrangement. With infrastructure projects spanning from Jakarta to Nairobi, from Islamabad to Athens, Hong Kong’s financial expertise and project management capabilities position it as the natural financing hub for this century-defining development program. Standard Chartered estimates BRI projects’ financing needs to be at $1.2 trillion annually — a market that doesn’t depend on US participation.

The tariff truce may extend for 90 days or 900 days. Either way, Hong Kong’s economic future remains bright, built on foundations far more solid than any trade agreement

Moreover, the Regional Comprehensive Economic Partnership, encompassing 15 Asia-Pacific nations and representing 30 percent of global GDP, offers Hong Kong businesses preferential access to the world’s most dynamic economic region. The Association of Southeast Asian Nations alone, with its 650 million consumers and rapidly growing middle class, presents opportunities that rival any Western market.

Hong Kong’s recent surge in Middle Eastern partnerships illustrates this diversification in action. Saudi Arabia’s Vision 2030 and the United Arab Emirates’ economic transformation create massive opportunities for Hong Kong’s financial services, technology, and infrastructure expertise. These relationships are built on mutual benefit, not subject to the vicissitudes of electoral cycles or Twitter diplomacy.

The 90-day extension should be viewed not as a reprieve but as a reminder that while Hong Kong welcomes stable trade relations with all partners, its economic destiny lies in its own hands. Hong Kong’s competitiveness stems from fundamental strengths: its legal system, geographic position, human capital, and unique institutional arrangements.

As Hong Kong navigates an increasingly multipolar world, it must be the bridge, not the battleground. We should welcome American businesses seeking Asian opportunities and Asian businesses seeking global expansion. But we should do so on our own terms, confident in our value proposition, independent of any particular bilateral relationship.

The tariff truce may extend for 90 days or 900 days. Either way, Hong Kong’s economic future remains bright, built on foundations far more solid than any trade agreement.

The author is the convenor at China Retold, a member of the Legislative Council, and a member of the Central Committee of the New People’s Party.

The views do not necessarily reflect those of China Daily.