Safeguarded and empowered by the rule of law: Hong Kong continues to unleash business vitality and innovation momentum

Editor's note: Ren Xiaomeng is an associate researcher at the Institute for National Strategy and Regional Development, China Academy of West Region Development, Zhejiang University. The article reflects the author's opinions and not necessarily the views of CGTN.

On January 26, the Hong Kong Special Administrative Region (HKSAR) Government released the results of the 2025 Annual Survey of Companies in Hong Kong with Parent Companies Located Outside Hong Kong and the 2025 Annual Survey of Startups in Hong Kong. The data revealed that over the past year, the number of companies with parent companies outside Hong Kong increased to 11,070, while the number of startups rose to 5,221. Both figures achieved double-digit year-on-year growth, setting new historical records. 

Notably, among Hong Kong's startups, the fintech and information and computer technology sectors maintained a leading position, while the number of startups in frontier technology fields, such as biotechnology, continued to grow steadily. In 2025, Hong Kong firmly held the top spot in the global IPO fundraising market, with four new listings ranking among the year's global top 10. Furthermore, Invest Hong Kong assisted a total of 560 overseas and Chinese mainland enterprises in setting up or expanding their operations in the region, with a similar concentration in the finance and technology sectors. Against the backdrop of global economic uncertainty, Hong Kong's business vitality and innovation momentum have surged against the headwinds. This underscores the immense appeal of Hong Kong's business environment and reflects the confidence and affirmation that global investors, entrepreneurs, and technology talent place in HKSAR's development prospects.

Among the factors driving Hong Kong's business vitality and innovation, social stability safeguarded by the rule of law and development certainty empowered by the law are undoubtedly the primary and fundamental elements. The enhancement of business vitality is inseparable from the improvement of the business environment, and the rule of law constitutes the best business environment. Particularly amidst intensifying international geopolitical conflicts and the spread of risks associated with global supply chain uncertainties, Hong Kong has steadfastly relied on the rule of law to maintain a safe and stable social environment, continuously cultivating a thriving ecosystem for innovation and entrepreneurship. 

Beyond convenient transportation and administrative efficiency, this legal stability has become a significant highlight, attracting global innovators to choose Hong Kong, propelling the region to become a "safe haven" for national investment. The World Competitiveness Ranking 2025 ranked Hong Kong first globally in business legislation. Similarly, the World Bank's Global Business Environment Report 2025 indicated that Hong Kong successfully ranked among the global top three in three core indicators: Business Entry, International Trade, and Contract Enforcement. In 2025, the International Organization for Mediation was officially established in Hong Kong and convened the first meeting of its council, with 38 signatory states to the convention. This serves not only as another significant validation of Hong Kong's robust legal environment but also provides crucial support for HKSAR to function as a risk shock absorber and continue gathering global capital and top-tier talent.

Technological innovation is equally dependent on the safeguard and empowerment provided by the rule of law. The closer one gets to the technological frontier, the more critical intellectual property (IP) protection becomes. In this regard, Hong Kong possesses distinct legal advantages. 

Firstly, Hong Kong's IP protection processes are transparent and efficient, with clear and controllable enforcement costs. Whether for patents or trademarks, Hong Kong adopts international standard procedures with relatively short examination cycles. The region gathers high-level IP lawyers, offering clear avenues for rights protection and controllable costs. 

Secondly, there is a high degree of international synergy in Hong Kong's IP protection. The region's IP regime is not only based on local laws and enforcement frameworks but has also continuously strengthened its position in the global IP protection network through close cooperation with international bodies such as the World Intellectual Property Organization. This high-level, international, and collaborative legal protection system for intellectual property has solidified Hong Kong's status as a regional IP trading and protection center, laying a solid foundation for the sustained escalation of its innovation and entrepreneurship momentum.

The recommendations for the nation's 15th Five-Year Plan (2026-30) have explicitly outlined the consolidation and enhancement of Hong Kong's status as an international financial, shipping, and trade center, alongside support for its development as an international innovation and technology center and a hub for high-caliber global talent. Looking toward the "15th Five-Year Plan," a solid, stable, and comprehensive legal environment stands as Hong Kong's core advantage in innovation and entrepreneurship. It is also the vital foundation giving HKSAR the confidence to grasp new opportunities in integrating into the overall national development and to write a new chapter for the practice of "one country, two systems" in the new era.