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Over the years, Hong Kong and Italy have cultivated a strong bilateral trade and investment relationship. In 2022, for instance, among all European Union members, Italy ranked fourth in terms of the value of its merchandise trade value with Hong Kong. In all, the total value of the trade in goods between the two countries exceeded $8 billion in 2022, with Italy exporting $4.8 billion worth of goods to Hong Kong and importing $3.2 billion in return.

As a free port, with a duty‑free import policy, Hong Kong's many advantages have long seen it recognised as one of the world's key trading and logistics hubs. As well as ranking 10th globally in terms of 2022 merchandise trade value (US$1.277 trillion), the city is a lead player on the international air cargo front, with its strategic location and strong infrastructure a guarantee of unrivalled connectivity with much of mainland China. This also makes Hong Kong the ideal intermediary point for any Italian goods destined for China or the wider Asian markets.

The Hong Kong‑Italy business ties encompass a variety of sectors, including computers and optical products, jewellery, food and beverages and chemicals. Hong Kong has also long been a prime destination for many Italian high fashion items, notably clothing, footwear, travel goods and personal luggage. Overall, fashion‑related items represent a significant proportion of Italian exports to the city, with clothing alone accounting for one‑fifth of all Italian exports to Hong Kong.

As one of the most service‑oriented economies in the world, Hong Kong's mature and sophisticated services sector has also played a significant role in boosting its external trade ties with Italy. Thanks to Hong Kong's extensive resource of financial, commercial and professional services talent, services trade between the two economies – which is particularly extensive in the transport, technical, trade‑related, and business services sectors – was valued at more than $1 billion in 2022.

Attracted by the city's manifest advantages, many Italian firms and investors have also set up offices in Hong Kong as a means of ensuring preferential access to the mainland market. In addition, the city is the preferred gateway for many of the businesses looking to establish a presence in the Asia Pacific region, mainland China or, particularly, within the Greater Bay Area (GBA). As a recognised super‑connector, the city has unparalleled advantages, while its exceptional financial, professional, and IT services, coupled with its pool of highly skilled industry professionals and its robust legal system, have made it the preferred destination for many Western businesses, including Italian companies and investors.

As a designated Special Administrative Region (SAR), Hong Kong has a separate customs territory and tariff regime from the rest of China. At the same time, The Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) guarantees that goods of Hong Kong origin can enter China on a tariff‑free basis.

Services firms also receive preferential access, including those active in such sectors as trading, professional services or investment. Meanwhile, CEPA’s Most-Favoured Treatment provision ensures that any preferences granted by China to any other region must also apply to Hong Kong, while being the only Chinese territory under common law jurisdiction acts to further enhance the city’s appeal. In light of this, it should come as little surprise that Hong Kong is the third most popular Asian destination for Italian investors, attracting a total FDI stock of US$3.6 billion as of the end of 2021.

Looking ahead, Hong Kong‑Italy cooperation is expected to both broaden and accelerate in the post‑Covid era. Hong Kong is, after all, uniquely well‑placed to serve as a premium market for Italian goods and services, while also providing an excellent platform for any Italian business or entrepreneur keen to establish long‑term partnerships or secure the backing of suitable investors.