Foreign businesses have for decades reaped the benefits of setting up shop in Hong Kong, a historically stable, expat-friendly finance hub at the doorstep of mainland China.
But lately, as Beijing has tightened its grip on the former British colony, those firms are increasingly eyeing the exits.
The city's"zero Covid" strategy led to severe consequences for businesses and residents, the report from the European Chamber of Commerce said. Hong Kong's"biggest advantage" — its global connectivity and proximity to mainland China —"has been almost completely disabled," the Chamber said. Last week, Hong Kong Chief Executive Carrie Lam acknowledged that the protocols were eroding residents' satisfaction with the city, saying she had a"very strong feeling that people's tolerance is fading."