Hong Kong lags Greater Bay Area peers in AI supply chain development

Hong Kong is significantly trailing its neighbors in the Greater Bay Area when it comes to developing artificial intelligence supply chains, according to a new index. The Greater Bay Area Industry Development Index 2026, a joint release from think tank Our Hong Kong Foundation and Dah Sing Bank, placed Hong Kong near the bottom in meeting the growing demand for AI supply chains. The index assessed the performance of the 11 cities within the bay area across key sectors.

While ASEAN countries serve as manufacturing hubs for electronics, Hong Kong has established itself as a crucial gateway for businesses connecting to global markets. It provides essential services such as financing, legal support, intellectual property expertise, testing, certification, and trade solutions, aiding companies in managing cross-border requirements and preparing electronic products for export. The ASEAN-Hong Kong Free Trade Agreement further facilitates trade by eliminating tariffs on ASEAN electronics exports.

Hong Kong's connection to mainland China through arrangements like the Cross-Boundary Express Cargo Clearance Facilitation Arrangement (CEFA) allows for expedited customs clearance for eligible shipments. This streamlined process enhances Hong Kong's role as a conduit for manufacturing and logistics flows into Southeast Asia, enabling companies to bypass traditional border delays. FedEx has adopted these CEFA protocols, integrating them into its network to speed up the movement of electronics from Greater Bay Area factories to ASEAN markets.