In March 2025, the Hong Kong Competition Commission hosted the “Hong Kong Competition Exchange,” bringing together leading experts from around the world to better understand how competition actually drives innovation and technological growth. I was honored to participate in the panel discussion as a board member of the Competition Commission and as the Director leading AALCO’s regional centre, gaining insightful perspectives on the intricate forces between competition and innovation.
Competition and innovation is often seen as a high-octane battlefield where companies fiercely contest market leadership while simultaneously pushing the boundaries of technology to deliver more advanced and efficient solutions to society. Take artificial intelligence (AI) as an example—competition has fueled numerous breakthroughs. DeepSeek, through its open-source model, has lowered the technological entry barrier, opened the door to competitors and enabled more companies to rip and ride on the success of DeepSeek and be able to more cost effectively participate in GenAI research and development. This approach has been met with collaborating, even from established leaders in the field, including the “Magnificent 7” major US tech giants like NVIDIA, Microsoft and Amazon to collaborate, accelerating AI advancements. This ” collaboration + competition” (co-competition) model not only speeds up technological innovation but also benefits consumers and businesses by offering more cost-effective AI solutions.
As the world’s third-largest financial center, Hong Kong boasts a world-class education system, robust infrastructure, and a strong talent pool in innovation and technology, making it an ideal hub for technological development. Competition drives businesses to enhance productivity. Recent announcements at the National People’s Congress has reinforced Hong Kong’s position as an international innovation and technology hub. However, competition must be balanced—excessive competition may lead companies to focus only on short-term profits at the expense of long-term research and development. Additionally, if markets become dominated by a few major players or if government intervention is excessive, market vitality could weaken, hindering the growth of startups.
A case in point is TikTok’s ban in the United States, which was not the result of market competition but rather political influence. This decision has affected thousands of content creators and businesses, sparking debates on the principles of fair competition. When government policies excessively interfere with the market, they can stifle innovation, create an unfair competitive landscape, and ultimately weaken global technological rivalry. This serves as a reminder that regulatory bodies must strike a balance between maintaining fair competition and fostering innovation to prevent markets from losing their competitive edge due to unnecessary intervention.
In the coming years, AI will be at the heart of global competition, prompting governments worldwide to establish AI regulatory frameworks. China has proposed the “Global AI Governance Initiative,” and the United Nations has passed resolutions to promote international cooperation. For Hong Kong, and for the world, creating an open, fair, and stable competitive environment is crucial. Policymakers must ensure that the market is not overly restricted, allowing businesses ample space for technological innovation while attracting international enterprises and talent to leverage Hong Kong’s unique role as a “super connector” and “super sandbox”.
During the discussions at the “Hong Kong Competition Exchange,” experts unanimously agreed that competition and innovation form an ongoing contest with no finish line—only evolving rules. For Hong Kong to maintain its leading position in this global tournament, it must uphold a healthy competitive environment, ensuring that businesses can fully harness their innovative potential. This will drive high-quality economic growth and further secure Hong Kong’s place as a key player in the future landscape of global technology.
Fair competition and co-competition in innovative technological breakthroughs | The Standard
