How Xinjiang offers Hong Kong a bridge to Central Asia — and what the risks are

Hong Kong businesses can leverage Xinjiang’s connectivity with Central Asia to expand into new markets while the city’s financial, trade and professional services can help businesses in the region enter Southeast Asia, according to political analysts.

But an economist and a textile industry veteran have warned of potential risks for Hong Kong businesses building ties with Xinjiang in northwestern China.

Western countries have imposed sanctions on officials and entities tied to the Xinjiang Uygur autonomous region over alleged suppression of ethnic minority members – accusations Beijing has repeatedly denied.

Chief Executive John Lee Ka-chiu led his largest delegation to date to Kazakhstan and Uzbekistan in May and June, aiming to explore new markets amid geopolitical uncertainties and help mainland Chinese companies go global.

Li Lifan, a research fellow at the Shanghai Academy of Social Sciences, said Xinjiang could play a role in fostering collaboration between Hong Kong and Central Asia.

Li noted that Xinjiang had two major railway hubs in Alashankou and Khorgos at its border with Kazakhstan, a country through which most freight trains running between China and Europe passed.

“Xinjiang is essential to trade between Hong Kong and Central Asia,” he said, adding that the region had a strong appetite for advanced and innovative electronic products.