Hong Kong’s leader will travel to Kazakhstan and Uzbekistan early next month to explore and seize new business opportunities, making Central Asia his latest area of focus and with the largest delegation travelling with him to date.

After several years of promoting the city in the Middle East and Southeast Asia amid geopolitical uncertainties, Chief Executive John Lee Ka-chiu said on May 19 that he was eyeing Central Asia next, The Caspian Post reports via South China Morning Post.

The delegation he will lead to the two key countries under Beijing’s Belt and Road Initiative will be the largest of his administration so far.

There will be more than 30 Hong Kong business leaders from sectors ranging from logistics to innovation and technology, alongside about 30 entrepreneurs from mainland China from more than 10 provinces, cities and autonomous regions. The mainland representatives cover industries such as energy, mining, high-end and car manufacturing.

“The Central Asian region is actively pursuing economic diversification,” he said, citing strong growth in areas such as finance, trade, infrastructure, tourism and green development. “There is significant room for collaboration with Hong Kong.”

He added that he would meet senior officials from both countries to establish a government-to-government communication mechanism, promote the city’s advantages, build new business networks and explore fresh opportunities.

Lee hailed the two countries as two large markets in Central Asia with rich natural resources, sustained and robust economic growth and huge development potential.

Kazakhstan, a key partner under Beijing’s Belt and Road Initiative, is Central Asia’s largest economy and an emerging financial hub, with GDP reaching US$302.7 billion last year.

Lee said the country - also a critical logistics and business hub linking Europe and China - was currently Hong Kong’s biggest trading partner and export market in Central Asia.

Uzbekistan, located at the heart of the region, has the largest population among the five Central Asian countries and a border that connects them all.

The country recently signed 15 bilateral agreements with Hong Kong covering areas such as infrastructure, healthcare and metal production during a visit to the city by Prime Minister Abdulla Nigmatovich Aripov.

Lee said he would visit Central Asia with three objectives.

The first was to explore more emerging markets and lay down the foundation for long-term trade, allowing local companies to explore new opportunities there and attracting their Central Asian counterparts to develop their businesses through Hong Kong.

The second objective was to enhance government-to-government communications and foster more exchanges between the city and Central Asia.

The third was to create what he called a “hub-to-hub model” with Kazakhstan and Uzbekistan.

“Kazakhstan and Uzbekistan are two huge countries in Central Asia and the gateway for foreign capital to enter the region’s markets, while Hong Kong is the channel for foreign companies to enter East Asia and Southeast Asia,” he said.

“By establishing a new hub-to-hub collaboration model we can create a new channel in bridging Central Asia, East Asia and Southeast Asia. It will be favourable to the development of Hong Kong’s trade and service industries and create more job and value-added opportunities.”

Bruce Pang Ming, director of research at the Trade Development Council, said there were new opportunities for Hong Kong to collaborate with the Central Asian countries, which had been undergoing structural reforms and economic diversification.

These countries, which had a youthful demographic and were enjoying sustained economic growth, also ensured long-term market vitality, he added.

He said Hong Kong logistics companies could help boost the capacity of these Central Asian nations, which wanted better integration into global markets, and stronger industrial and manufacturing capabilities to unlock new export opportunities.

Lee has led efforts to explore emerging markets in recent years amid geopolitical tensions.

Avoiding destinations in Europe and the United States, where he was sanctioned, he has made three trips to Southeast Asia since taking office in 2022, covering seven of the 11 Asean members.

He has also led two delegations to the Middle East, visiting the United Arab Emirates and Saudi Arabia in 2023, followed by Qatar and Kuwait last year.

Lee for the first time included representatives of mainland Chinese enterprises in his delegation last year in a bid to leverage the city’s edge as a “superconnector” that could help mainland companies enter Middle Eastern markets.

Hong Kong authorities subsequently established the GoGlobal Task Force in October, which offers one-stop tailor-made professional services to mainland Chinese enterprises wanting to expand overseas.