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Xinjiang seen as bridge for Hong Kong firms to Central Asia
The push is tied to major border rail hubs, including Alashankou and Khorgos, that link freight flows between China and Kazakhstan.
Hong Kong businesses may be able to expand into new markets by using Xinjiang’s connectivity to Central Asia, while Hong Kong’s finance, trade, and professional services could help firms in the region reach Southeast Asia, political analysts said, according to SCMP Economy.
The outlet reports that Western governments have imposed sanctions on officials and entities linked to Xinjiang’s Uygur autonomous region over allegations of abuses against ethnic minority groups that Beijing has repeatedly denied.
SCMP Economy also highlights that Chief Executive John Lee Ka-chiu led the largest Hong Kong delegation to date to Kazakhstan and Uzbekistan in May and June, aiming to explore new markets amid geopolitical uncertainty and support mainland companies going global.
An economist and a textile industry veteran, cited by SCMP Economy, cautioned that there are risks for Hong Kong businesses building ties with Xinjiang, including because Xinjiang has two key railway hubs at its border with Kazakhstan, Alashankou and Khorgos, through which most freight trains running between China and Europe pass.