As we move further into 2025, the global business environment continues to be shaped by the geopolitical currents of the last few years. For American companies, particularly those looking to expand or diversify in Asia, Hong Kong remains a uniquely strategic player. While US-China tensions have reshaped some trade patterns, Hong Kong’s role as a distinct jurisdiction with its own legal, financial, and regulatory systems continues to offer stability and opportunity for US businesses.
Despite headlines suggesting a decoupling of major economies, the actual trade figures between the United States and Hong Kong tell a more nuanced story. In 2023, Hong Kong ranked as the United States’ 30th largest goods trading partner, with total goods trade nearing $25 billion. The region continues to import a wide range of American goods—from semiconductors and aircraft components to medical instruments and consumer goods—while serving as a key re-export hub into Mainland China and across Southeast Asia. Sectors such as finance, logistics, professional services, and technology remain particularly strong areas of collaboration.
However, it's true that companies must be more informed and deliberate than ever. Since 2020, a number of US federal policies have placed enhanced scrutiny on dealings involving Hong Kong, particularly where issues of technology transfer and national security are concerned. Certain export controls now require firms to conduct due diligence on end users, and US firms operating in sensitive tech or dual-use sectors need to ensure full compliance with the US Department of Commerce and OFAC regulations. That said, these controls do not constitute a broad-based ban on US-Hong Kong trade. Many companies continue to operate seamlessly within the legal framework, especially in sectors unaffected by restrictions.
Hong Kong’s distinct status as a Special Administrative Region under the “One Country, Two Systems” framework gives it a legal and economic environment that remains markedly different from that of Mainland China. It retains a common law legal system, independent judiciary, and internationally recognized regulatory institutions—making it one of the most trusted jurisdictions in Asia for arbitration, contract enforcement, and corporate governance. For US firms concerned about legal protections, this means Hong Kong still offers the transparency and rule of law critical to long-term planning.
Furthermore, Hong Kong continues to act as a gateway—not just into China, but across Asia-Pacific. Its integration into the Greater Bay Area, combined with robust infrastructure, deep capital markets, and world-class financial services, makes it an ideal launchpad for regional expansion. While direct US investment into Mainland China may be facing more friction, Hong Kong offers a pragmatic alternative: close enough to access the mainland market, yet separate enough to maintain a high degree of legal and regulatory autonomy.
Real-world examples support this optimism. American firms such as Goldman Sachs, FedEx, and Procter & Gamble maintain strong operations in the city, leveraging Hong Kong’s capabilities to manage regional supply chains, investment portfolios, and R&D functions. Meanwhile, an increasing number of US startups and SMEs are setting up in Hong Kong to tap into Asia’s consumer markets and tech ecosystems, drawn by government support schemes, incubator networks, and ease of doing business.
In sum, while the geopolitical context may have shifted, the fundamentals that have long made Hong Kong attractive to US businesses remain solid. Success now depends not on avoiding the region, but on entering it smartly—well-informed, well-advised, and with a clear understanding of both the risks and the immense opportunities. For many US firms with regional or global ambitions, Hong Kong in 2025 continues to be a door worth opening.
Woodburn Accountants & Advisors is one of China’s most trusted business setup advisory firms.
Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.