China

Intelligence for Better Decision Making

Hong Kong’s Rapid AI Industry Growth Drives Urgent Demand for Specialized Talent
July 1, 2025 | Demographics & Human Capital

Hong Kong’s AI industry is undergoing rapid expansion, driving demand for specialized talent and prompting strategic initiatives across government and business.

**Hong Kong faces a widening talent gap in innovation and technology as its economy transforms and digitalizes.**
A November 2024 report by the Labour and Welfare Bureau projects an overall manpower shortage of 180,000 by 2028, with the innovation and technology sector alone needing an additional 60,000 to 65,000 skilled technical personnel. Demand for roles such as project managers, data analysts, AI specialists, new-energy engineers, microelectronics experts, and pharmaceutical technologists is set to rise from 60,200 positions in 2023 to more than 100,000 by 2030.

**To meet this need, the government has stepped up efforts to attract and retain AI and technology professionals.**
The 2025 Hong Kong International Talent Career Expo on June 28, backed by the Hong Kong government, focused on AI, financial economics, and intelligent manufacturing. Nearly 5,000 job seekers and over 50 companies attended, reflecting both strong employer demand and fierce competition for specialized skills. Meanwhile, cross-border talent mobility schemes now tap Mainland China’s deeper pool of technical graduates. In October 2024, the Quality Migrant Admission Scheme expanded its list of recognized Mainland universities from 13 to 22. Between 2024 and early 2025, candidates from Mainland institutions accounted for more than 95 percent of QMAS approvals, highlighting Hong Kong’s reliance on mainland expertise to fill critical roles.

**Even with competitive compensation—median monthly salaries at HKD 31,000 for general IT roles and HKD 55,000 for management—companies still struggle to recruit specialized AI engineers.**
Firms such as Baimo Cloud 3D Technology report a scarcity of candidates skilled in large-language-model development. This gap stems in part from differences in educational models: Mainland universities produce deeply specialized graduates, while Hong Kong’s system tends to develop broader, less specialized talent.

**Hong Kong’s financial sector is integrating AI to boost efficiency and create new digital offerings, including digital currency and blockchain services.**
Cyberport reports strong demand for professionals in AI, blockchain, data science, and cybersecurity, noting that AI plays an increasing role in streamlining IPO listings and tokenizing financial assets. These developments reinforce the need for specialized skill sets that remain in short supply locally.

**To strengthen its innovation ecosystem, Hong Kong leverages its status as an international financial center and offshore base for Mainland companies.**
Collaborations between Hong Kong and Mainland innovation centers drive standards alignment, localization, intellectual-property management, and global market entry for cross-border enterprises. Strategic initiatives in new industrialization, intelligent manufacturing, and smart cities reflect the government’s aim to transform Hong Kong into a global hub for innovation and technology.
Modest Recovery in China’s Manufacturing PMI Stalls Below Expansion Threshold in June
July 1, 2025 | Macroeconomics & Growth

China’s manufacturing sector showed modest improvement in June, although it remained in contraction territory.

**The official manufacturing purchasing managers index rose to 49.7 in June from 49.5 in May and 49.0 in April, marking a second consecutive monthly increase but staying below the 50-point threshold that separates contraction from expansion.**
Of the 21 manufacturing sub-sectors surveyed, 11 recorded expansion in June, up from seven in May. Equipment manufacturing led the gains with a PMI of 51.4, followed by high-tech manufacturing at 50.9 and consumer goods manufacturing at 50.4, each maintaining expansion for a second straight month.

**Meanwhile, the non-manufacturing PMI climbed to 50.5 in June, up 0.2 percentage points from May, and the composite PMI output index, which combines manufacturing and non-manufacturing activity, increased from 50.4 to 50.7.**
Sub-indices for production, new orders, exports, inventories, purchasing volume, and prices all rose, reflecting recovering market demand and stabilizing price pressures. The manufacturing production index surpassed 50, and the new orders index reached 50.2, indicating accelerated activity. In contrast, the employment index and the business activity expectations index both declined, pointing to lingering demand challenges.

**Large and medium-sized enterprises drove the PMI gains in June, while small enterprises faced a downturn.**
The non-manufacturing business activity index has remained above 50 percent since the start of the year, with construction benefiting from broader issuance of special bonds aimed at boosting infrastructure demand. The financial sector posted robust activity, with its sub-indices registering above 60 percent. Technology and internet services sustained rapid growth despite seasonal slowdowns in air transportation and entertainment.

**Policymakers have supported these trends through macroeconomic directives from the Central Political Bureau meeting in April, interest rate cuts, reductions in reserve requirement ratios, and targeted financial stimulus.**
A temporary export surge to the US following a June framework agreement also bolstered order books. Meanwhile, government efforts to stimulate consumption continue via funds to replace old consumer goods and enhanced loan subsidies for equipment upgrades.

**With first-half GDP growth projected at around 5.2 percent, authorities are unlikely to introduce major new policy interventions in the immediate term.**
Risks to a sustained recovery include a tapering of the export rush, seasonal production slowdowns, adverse weather impacts, varied performance across enterprise sizes, subdued price indices, and persistent demand constraints that could push the manufacturing PMI below 50 in July.

Monitored Intelligence for China - July 2, 2025


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'Acting as opposing forces' first mentioned in China's dual carrier drills, shows expansion of China’s maritime defense capabilities: experts

Global Times | English | News | July 2, 2025 | South China Sea

In 2025, the Liaoning and Shandong aircraft carrier formations of the Chinese People's Liberation Army Navy completed far seas combat training, operating across the Yellow Sea, East China Sea, South China Sea, and Western Pacific. During the exercises, the formations acted as both opposing forces and support units, coordinating with other military arms in realistic combat drills focused on reconnaissance, early warning, defense, counterstrike, maritime assault, air defense, and cross-day-night tactical flight operations.

This marks the first time China publicly revealed that its dual carrier formations conducted joint training featuring opposition roles against each other, reflecting enhanced joint operations that likely included coordination with air force fighter jets. The training showcased systemic combat capabilities through activities such as day-night carrier landings and replenishment operations, emphasizing the combat readiness and independent operational capacity of China’s aircraft carrier battle groups.

Foreign military vessels and aircraft conducted close reconnaissance and surveillance during the training, but Chinese formations maintained high alert and continuously deployed combat sorties. The exercise expanded operational reach to the Western Pacific, surpassing previously established maritime boundaries like the US-identified second island chain. Experts highlighted that the drills indicate a growing offensive and defensive capability of China’s carrier formations to confront enemy carriers at greater distances, extending China’s maritime defense perimeter and strengthening its ability to project power beyond national borders.

中国企业如何应对在美国被诉专利侵权?

Kangxin Partners PC | English | AcademicThink | July 2, 2025 | UndeterminedBudgets-Budgeting

The document references a Markman hearing and involves an expert witness in the context of a legal proceeding under case number 2:15-cv-443-JRG-GSP. Specific statutes mentioned include 28 U.S.C., indicating federal jurisdiction.

The case relates to a dispute over enforceability, possibly concerning patent rights, as Inter Partes Review is noted, which is a procedure used to challenge patents before the Patent Trial and Appeal Board.

习近平:团结奋斗是中国人民创造历史伟业的必由之路

Xi Jinping: Unity and Struggle Are the Only Path for the Chinese People to Create Great Historical Achievements

Xinhua | Local Language | News | July 2, 2025 | UndeterminedPolitics and Elections

Xi Jinping emphasizes unity and struggle as the essential forces for overcoming difficulties and achieving the great rejuvenation of the Chinese nation. He calls for consolidating the unity of all ethnic groups, social strata, and sectors under the leadership of the Communist Party of China (CPC), opposing any separatist activities, and harnessing the collective wisdom and strength of over 1.4 billion Chinese people to realize national goals.

Struggle is portrayed as both a source of happiness and a necessary, long-term process demanding sacrifice, perseverance, and unwavering dedication. Xi highlights the historical spirit of struggle embodied by the Chinese people through centuries of innovation, hardship, and collective effort. He stresses that continuous struggle by successive generations is critical to achieving the Chinese Dream and building a prosperous society.

The unity of the Chinese people, especially across the 56 ethnic groups, is described as pivotal in the nation’s historical achievements, including resistance to foreign aggression and safeguarding national sovereignty. Xi asserts that unity provides strength for national progress and stability and that only through unity can China advance and overcome risks and challenges.

Xi reiterates that the CPC and the Chinese people have consistently grown stronger through struggle during revolution, construction, and reform. He warns of ongoing and emerging challenges that threaten the Party’s leadership, political stability, and core interests, and insists on resolute resistance to such risks. Xi emphasizes the necessity of strategic composure, proactive adaptation, and maintaining the mass line—close ties between the Party and the people—to collectively confront and overcome future obstacles.

Chinese-style modernization is positioned as a shared, challenging journey that requires common participation and solidarity. Despite the prospect of difficulties and unpredictable risks, Xi calls for unity and a spirit of courageous struggle to realize sustained development and national rejuvenation. He highlights the importance of strict Party governance, the new development philosophy, and continuous consolidation of unity as foundational to China’s path forward.

In sum, Xi frames unity and struggle as the indispensable pillars underpinning China’s historical and future achievements, urging all Chinese people and Party members to unite closely, embrace arduous struggle, and work steadfastly to realize the great goals of socialism with Chinese characteristics and the great rejuvenation of the Chinese nation.

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