Chief Executive John Lee has announced that Hong Kong’s links to Central Asia will be strengthened with expanded visa-free arrangements and direct flights to Kazakhstan.
Lee was speaking to reporters in the Kazakh capital of Astana on Tuesday during an official visit with business leaders.
Hong Kong already has visa-free arrangements with Kazakhstan, Uzbekistan and Kyrgyzstan, which allow stays of between 10 and 30 days, but Lee said he hoped to extend the period to 30 days for all three countries this year.
“We and the Kazakh government both agree that this is definitely one of our goals. We have already exchanged some further information with the two governments, and everyone is working hard to work toward this target,” he said, according to RTHK.
He later told officials at a business dinner that he looked forward to a “long-term partnership and enduring friendship” between Astana and Hong Kong.
“Rich in oil and mineral resources, and rapidly developing and diversifying, Kazakhstan is a regional economic powerhouse. Hong Kong, a pivotal player in the Belt and Road Initiative, looks forward to working with Kazakhstan – with you – in creating mutual opportunities,” he said, according to a government press release.
Cathay direct flights
Meanwhile, flagship carrier Cathay Pacific announced direct flights to Almaty, the country’s largest city and former capital, on Tuesday.
The airline said flights are set to begin in the first quarter of next year.
“Central Asia is a strategically important Belt and Road region that offers ample business opportunities. As Hong Kong’s home hub carrier, Cathay has aligned interests with the HKSAR Government in strengthening our connectivity with this emerging market,” Cathay Chief Customer and Commercial Officer Lavinia Lau – who is among the visiting delegation – said, according to a Cathay press release.
Business deals
On Monday, Lee oversaw several memoranda of understanding signed at the capital’s Astana Hub – an innovation and tech hub.
Agreements were inked between Hong Kong’s Belt and Road Office and Kazakhstan’s Ministry of Artificial Intelligence and Digital Development, as well as deals between the Astana Hub and Cyberport, Hong Kong Science and Technology Parks and the Hong Kong-Shenzhen Innovation and Technology Park.
An agreement between InvestHK and the Astana International Financial Centre was also signed, RTHK reported.
Lee will visit Astana’s Nazarbayev University on Wednesday to strengthen collaboration with Hong Kong universities. He will then travel on to Uzbekistan.
Kazakhstan is Hong Kong’s largest trading partner in Central Asia.
It has seen strong GDP growth in recent years and a stable unemployment rate in recent years, with minerals, agriculture and hydrocarbons being key exports.
However, it has struggled with double-digit inflation, currency stability and severe social inequality, according to the US International Trade Administration. It is ranked 96th out of 182 countries evaluated in Transparency International’s latest Corruption Perceptions Index. Hong Kong sits at 12, whilst China sits at 76.
According to the Astana Times, Kazakhstan’s top trade partner is China, with trade reaching US$13.2 billion (HK$103.4 billion). Beijing imports huge quantities of minerals from the Central Asian country and has developed a trade corridor across the region.
The Belt and Road Initiative is a hallmark economic strategy proposed by Chinese President Xi Jinping, seeking to link China to Europe and Africa through a land “belt” and a maritime “Silk Road.” Since its announcement in 2013, China has spent billions of dollars developing trade links and building infrastructure in countries across central and southern Asia.
