Paul Chan urges fiscal prudence and cooperation on geopolitical, AI risks
Financial Secretary Paul Chan Mo-po has called for fiscal prudence, vigilant oversight and closer regional cooperation to manage geopolitical and artificial-intelligence risks, speaking at the APEC Finance Ministers' Meeting 2026. He warned that prolonged disruption could raise energy prices and tha
Financial Secretary Paul Chan Mo-po has called for fiscal prudence, vigilant financial oversight and closer cooperation in information sharing, risk monitoring and emergency response to manage geopolitical and artificial-intelligence risks.
Speaking at a discussion during the Asia-Pacific Economic Cooperation Finance Ministers' Meeting 2026, Chan said that while the global economy has shown resilience, geopolitical tensions and trade policy uncertainty cloud the outlook, with risks tilted to the downside.
He warned that prolonged geopolitical disruption would raise energy prices, further fuel inflation and tighten financial conditions, weighing on investment and constraining fiscal space. Chan also said that concentrated exposures to AI-related assets, particularly where leverage is involved, could amplify market corrections across sectors and borders.
Chan noted that translating technological advances into productivity gains, wider adoption of AI, green transition and other innovations requires sustained investment. He urged governments in the region to provide predictable, investment-friendly policies and modernise regulatory frameworks to give businesses the confidence to innovate and invest.
The financial secretary also called for open channels for trade and investment, not new barriers, saying that connected markets allow capital to reach productive uses and technologies to be adopted across borders.
Chan added that Hong Kong stands ready to work with fellow economies to seize opportunities, manage risks and support more resilient, sustainable and inclusive growth across the Asia Pacific.
