HONG KONG, The Hong Kong government is in discussions with several Chinese electric vehicle (EV) manufacturers to establish local assembly operations, as the city seeks to diversify its economy by venturing into advanced industries, according to people familiar with the matter.
Officials are exploring potential sites in the New Territories, near the border with mainland China, to host an EV assembly hub — a complex undertaking requiring highly skilled expertise, the people said, requesting anonymity. Talks have included state-owned FAW Group, one of them added.
In response to queries, the city’s Innovation, Technology and Industry Bureau said Hong Kong has been “proactively facilitating the development of strategic industries, including advanced manufacturing,” under its 2022 innovation and technology blueprint. FAW did not immediately respond to requests for comment.
The move comes as Hong Kong seeks new growth drivers after years of economic strain caused by political crackdowns, pandemic isolation, and a property slump that weakened its status as a premier financial hub. The government has turned to aggressive measures — from tax hikes to civil service cuts — to balance its books and cushion the economy from global uncertainties.
Despite its push, Hong Kong faces challenges in becoming a viable EV hub. High land and labour costs could weigh on competitiveness, while China’s EV sector itself grapples with overcapacity and a price war that has forced state intervention.
Even so, the city continues to attract players in the EV supply chain. Battery giant Contemporary Amperex Technology Co Ltd (CATL) recently set up its international headquarters in Hong Kong and debuted on its stock exchange in the year’s largest listing. Autonomous driving firms Black Sesame Technologies and Horizon Robotics have also invested heavily in local bases.
