Hong Kong: The European Bridge to the Rise of Asian AI

Hong Kong: A Springboard for Europe into Asia

Europe, in its quest for sovereignty in artificial intelligence, faces major challenges. European startups are gradually realizing that they need massive production capacity and access to extensive markets to position themselves on the global stage. Asia, with its vast expanse and economic dynamism, appears to be a key region to meet these needs. However, political tensions and concerns regarding intellectual property protection make this expansion risky.

Terry Wong, CEO of the Hong Kong Science and Technology Parks Corporation (HKSTP), emphasizes that more and more European startups are choosing Hong Kong as their entry point into Asia. Hong Kong is not just a legal gateway; it is at the crossroads of essential forces for startups: international capital markets, world-renowned universities, advanced manufacturing networks, and direct access to one of the largest technology markets in the world.

To achieve sovereignty, it is crucial for an entity to access global networks while maintaining control over its intellectual property. For European innovators, the question is not whether they should collaborate internationally, but how to do so effectively. Industrial sovereignty requires openness to innovation networks and global infrastructures while retaining control over intellectual property, governance, and strategic vision.

Hong Kong, with its familiarity with the legal framework and proximity to the booming Chinese economy, is becoming an essential bridge for exchange between Western and Asian companies in the field of innovation.

Hong Kong: A Gateway for Physical AI

As Europe intensifies its efforts to achieve AI sovereignty, the distinction is no longer made between European and Asian innovation, but between connected ecosystems and those that are not, according to Wong.

In this new era of physical AI, the dividing line is no longer between European or Asian innovation, but between connected ecosystems and those that are not. The countries that will succeed are those capable of combining scientific depth with access to the global market, he explains.

Asia continues to be one of the fastest-growing regions in the world, generating about 60% of global GDP growth, according to the International Monetary Fund. China, in particular, has placed technology at the heart of its economic strategy. According to the Hamilton Index from the Information Technology & Innovation Foundation (ITIF), China leads global production in seven of the ten advanced industries, including computers and electronics, machinery and equipment, and chemicals.

Hong Kong is also situated within the Shenzhen-Hong Kong-Guangzhou cluster, ranked as the top innovation cluster in the world by the World Intellectual Property Organization. What makes Hong Kong distinctive within the Greater Bay Area — the grouping of powerful cities in China and around — is its ability to connect different parts of the innovation value chain. Research institutions, international investors, and multinational companies coexist near expertise in manufacturing, prototyping, and supply chain across southern China.

For startups developing solutions in AI, robotics, or advanced hardware, this can reduce the distance between invention and industrial deployment, allowing teams to move more quickly from lab breakthroughs to concrete applications.

An emerging area that will stimulate innovation between Europe and Asia, according to Wong, is physical AI. Asia and China, in particular, are rapidly emerging as a driver for physical AI with their advancements in semiconductors, microelectronics, industrial robotics, and autonomous vehicles, he says.

Europe brings leading strengths in advanced engineering and industrial system design. This will enable what Wong describes as large-scale co-innovation, allowing technologies to be invented together, then tested and deployed on other continents.

Hong Kong's 'One Country, Two Systems' Framework

With dynamic geopolitical tensions, increasingly strict export controls, and persistent concerns regarding intellectual property protection, clear barriers remain for direct entry into the Asian market.

In this environment, startups increasingly need more than just market access. They need places capable of connecting research, capital, talent, and industrial capacity while reducing the operational frictions that often accompany cross-border expansion.

The most effective hubs are those that allow knowledge, technology, and investment to flow between ecosystems without requiring companies to compromise control over their intellectual property, governance structures, or long-term strategy.

Trusted interfaces play an important role. Places where collaboration can occur under familiar legal frameworks, where applied research can translate into deployable systems, and where the resulting value can be repatriated and scaled in Europe would also allow ideas, talent, and industrial know-how to circulate without compromising national priorities or intellectual property.

This interface between ecosystems has been Hong Kong's role, positioned between global markets and Asian manufacturing networks, allowing research-focused universities to meet an environment where collaboration can occur under legal frameworks similar to those of the UK, the US, and other Commonwealth nations.

Hong Kong operates under a "one country, two systems" framework. Under this framework, Hong Kong operates in a way that offers a familiar common law system and protection for intellectual property and data, Wong states, providing international businesses with a familiar business environment.

Hong Kong helps companies navigate regulations and manage the risks of expansion in the region. Companies can leverage Hong Kong to then access mainland China, particularly the Greater Bay Area, he adds. This offers advantages, especially in the life sciences sector. Clinical data generated in Hong Kong is recognized by the US Food and Drug Administration (FDA), the European Medicines Agency (EMA), and the National Medical Products Administration (NMPA) of mainland China.

This allows digital health startups to validate their research in Hong Kong and deploy it in other global markets. The evolving export controls and trade policies implemented between the US, the EU, and China are also pushing startups to rethink their supply chains in Asia, in areas such as AI, semiconductors, and manufacturing.

However, Wong emphasizes that the current climate is leading to a recalibration rather than a complete withdrawal from the region. We are witnessing a reduction in risks, not a decoupling. Trade and investment flows are being recalibrated along geopolitical lines, he says.

How HKSTP Catalyzes Growth

While legal frameworks and geographic positioning provide a foundation for growth in Asia, companies need capital, infrastructure, and an active ecosystem. Increasingly, startups are leveraging players like HKSTP, with its comprehensive innovation ecosystem and well-developed AI infrastructure, to translate research and ideas into deployable products that can be brought back and scaled in Europe without compromising domestic legal and intellectual property standards.

The Hong Kong government has committed over HK$100 billion to support the development of innovation and technology.

Over the past 25 years, HKSTP has built a mature innovation ecosystem with strong regional and global networks connecting academic institutions, industry partners, investors, and talent. We are working to transform capital and innovations into real impact, Wong states. Asia presents enormous markets, commercialization potential, and product development. We understand that successful cross-border collaborations depend on a clear understanding of the value on each side.

This will create the space and conditions necessary for startups and strategic industries to move from 1 to 100. HKSTP offers a 12-month "Soft-Landing" program designed for international startups.