Hong Kong Handles Over Half of China’s Chip Imports
Hong Kong now handles more than half of China’s chip imports, reaching a record share of over 50% in the first five months of 2026, according to a Bloomberg review of official data. This surge can be attributed to the city’s free-port status and robust air cargo network, positioning it as a crucial middleman in Asia’s $2tn AI trade.
The City’s Role in Global Trade
Hong Kong has emerged as the primary gateway for high-tech goods entering and exiting China. Between January and May 2026, Hong Kong re-exported $124bn worth of chips to the mainland, accounting for 52% of China’s total chip purchases. This rapid growth is reflected in official figures published in late June, showing a nearly 50% increase in trade with China in May compared to the previous year.
Natixis senior economist Gary Ng attributes this to Hong Kong’s strong air cargo network and free-port status, which provide chipmakers with stable and flexible shipping options.
A $2tn AI Trade Network
Hong Kong’s unique advantages as a free port with no import tariffs or capital controls have made it a vital cog in the developing AI commercial landscape across Asia. Economists at HSBC estimate that AI trade within Asia has reached almost $2tn in 2025, with Hong Kong exporting nearly $159bn of AI-related goods last year.
Oxford Economics economist Yongshi Mai notes that Hong Kong facilitates the movement of AI goods rather than producing them itself. This trend is further highlighted by research from the Hong Kong Trade Development Council (HKTDC), which shows that AI-related electronics now account for 57% of the city’s exports, rising to 70% according to Barclays.
Navigating Global Tensions
While Hong Kong benefits from its strategic position, it also faces challenges. The middleman role exposes it to the tensions between the US and China, particularly during the Trump administration, when Washington stripped Hong Kong of its special customs privileges. These global geopolitics play a significant role in shaping Hong Kong’s economic landscape.