Hong Kong now handles over half of China’s chip imports

Hong Kong has cemented its role as China's primary conduit for semiconductor imports, with the city re-exporting more than half of the mainland's chip purchases in the first five months of 2026 — a record share driven by surging global demand for artificial intelligence hardware.

A Record Gateway

According to Bloomberg, Hong Kong funneled approximately $124 billion worth of semiconductors to the mainland between January and May, out of China's total chip imports of $239 billion during the period. AI-related electronics now account for 57% of Hong Kong's total exports, up from 44% in 2024 and 49% in 2025, according to data from the Hong Kong Trade Development Council. Economists at HSBC ↗ 0.03% estimate the value of AI-related trade within Asia has roughly doubled from pre-pandemic levels to nearly $2 trillion in 2025.bloomberg+2

The figures underscore Hong Kong's deepening function as a transshipment hub at a time when U.S. export controls and tariffs on advanced chips have reshaped global supply chains. In January 2026, the U.S. Bureau of Industry and Security relaxed certain restrictions on advanced AI chip exports to China — including Hong Kong — shifting from a blanket denial to case-by-case licensing, while simultaneously imposing a 25% tariff on covered semiconductors.semiconductorsinsight+1

Export Surge Defies Expectations

The HKTDC last week raised its 2026 export growth forecast to above 20%, up sharply from its earlier estimate of 8% to 9%, after Hong Kong's exports rose 36.2% year-on-year in the first five months of the year. Electronics remained the dominant category, accounting for more than 70% of total exports, with semiconductors and related components performing particularly well.thestandard+3

China's own export data tells a similar story. Semiconductor exports from the mainland more than doubled year-on-year by value in May, while total Chinese exports grew 19.4%, according to customs data reported by The Wall Street Journal News Corp ↗ 0.75%.wsj

Geopolitical Crosscurrents

The boom comes amid a complex policy landscape. While the Trump administration's January rule opened a controlled channel for advanced chips to reach Chinese buyers, Washington has simultaneously escalated enforcement actions against unauthorized diversions. Hong Kong's unique status — treated as part of China under U.S. export control regulations but operating its own customs regime — makes it a natural focal point for regulators on both sides.kharon

Hong Kong's economy expanded 5.9% in the first quarter of 2026, its fastest quarterly growth in nearly five years, propelled largely by the AI-driven components trade.english.scio