Half of European Companies "Will Leave Hong Kong"... Is the Exodus Accelerating?

From Next Month, Easing of Flight Quarantine Measures Begins
President of the European Chamber of Commerce: "A Very Late Measure"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Hyunjung] About half of European companies operating in Hong Kong plan to relocate their businesses and employees. Although the Hong Kong government has announced plans to ease quarantine measures next month and is accelerating efforts to regain its status as a 'global financial hub,' critics say the measures are too late.

On the 24th (local time), Bloomberg cited a survey conducted by the European Chamber of Commerce in Hong Kong (ECC). According to the survey, 25% of respondents said they plan to 'completely relocate' from Hong Kong within the next 12 months, while 24% said they would 'partially relocate.' 34% of companies were uncertain about their relocation plans, and only 17% said they had no plans to relocate. The survey was conducted between mid-January and early February, when COVID-19 restrictions were at their peak, with 260 participants.

Following the 2019 pro-democracy protests and the COVID-19 outbreaks in 2020 and 2021, Hong Kong’s city functions were partially paralyzed, and lockdown measures were repeatedly implemented. The report stated, "The city, once a symbol of 'stability and openness,' has become a city of 'uncertainty.'"

In particular, the communication evaluated that the mandatory 21-day hotel quarantine for arrivals, compulsory hospitalization of those testing positive regardless of symptoms, and forced quarantine of close contacts during the COVID-19 response damaged the country's credibility.

Frederic Gollob, Chairman of the ECC, said, "The survey results are a clear warning that Hong Kong has damaged the European business community and their trust over the past few months and years." He added, "Although recent announcements have brought some relief, most perceive it as already too late." He emphasized, "A clear plan for normalization is necessary to create positive momentum," and "Restoring Hong Kong as the 'World City of Asia' should be Hong Kong’s goal."

Earlier, the American Chamber of Commerce also confirmed in a recent survey that 44% of respondents might leave the city. About 60% pointed out that international travel restrictions in the city are the biggest problem for businesses.

This content was produced with the assistance of AI translation services.