Nobel laureates discuss trade, AI

November 19, 2025

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With the US-China trade war disrupting global trade, 2001 Nobel Memorial Prize laureate in Economic Sciences Joseph E Stiglitz, who has publicly opposed the imposition of tariffs between the two countries, believes the dispute has harmed the US more than China.

Nobel Memorial Prize laureate in Economic Sciences Joseph E Stiglitz: 
Investment is discouraged because people do not know whether the tariffs will be up or down or where to source their inputs. It has disrupted global supply chains. For the US, it has been, as I say, very, very disruptive. On the other hand, the hope for benefits of (a) return of manufacturing have not come about. There (is) a little bit in certain limited areas but (the) overall manufacturing employment I believe is actually even down. But there has been no strategy in the imposition of tariffs. 

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Through uncertain economic times, Hong Kong has continued to act as a "super connector" and "super value-adder" between China and the international community.

Mr Stiglitz said this role has become more important than ever.

Nobel Memorial Prize laureate in Economic Sciences Joseph E Stiglitz: 
China will continue to export. It may not export as much to the US. It will export more to Africa. As a commercial and investment hub, (a) financial hub, it (Hong Kong) becomes even more important because it gives that flexibility of knowing the global market. 

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Hong Kong is also actively developing artificial intelligence or AI as a core industry. 

Another 2001 Nobel Memorial Prize laureate in Economic Sciences, Michael Spence, is a member of the Chief Executive’s Council of Advisers on Innovation & Entrepreneurship. He agrees that the Government can make good use of AI when providing services and suggests it should ensure balanced development across different industries when promoting AI-related policies. 

Nobel Memorial Prize laureate in Economic Sciences Michael Spence:
If we are going to get the full effect of AI in the economy, it has to diffuse through the whole economy. And previous rounds of digital adoption suggest that a few sectors and a few firms go way ahead, and other ones lag badly, so you get a big divergence. That pattern is not a good idea, and the Government and public policy and partnerships between the private and public sector have an important role in making sure that diffusion process works.

Voiceover: 
His views are consistent with the Government’s initiative to promote AI application across diverse industries.

The two laureates met Chief Executive John Lee on Tuesday to exchange views on Hong Kong's economy, innovation and technology, and education. They also spoke at the Economic Transformations in a Multipolar World - International Forum on China's Economy and Policy 2025, organised by the Chief Executive’s Policy Unit.

On a visit to Hong Kong to attend the Economic Transformations in a Multipolar World - International Forum on China's Economy & Policy 2025, two Nobel laureates shared their views on Hong Kong’s positioning amid trade wars and the development of artificial intelligence (AI).

With the US-China trade war disrupting global trade, 2001 Nobel Memorial Prize laureate in Economic Sciences Joseph E Stiglitz, who has publicly opposed the imposition of tariffs between the two countries, believes the dispute has harmed the US more than China.

“Investment is discouraged because people do not know whether the tariffs will be up or down or where to source their inputs. It has disrupted global supply chains for the US.”

Mr Stiglitz also observed that there has been “no strategy” in the US’ imposition of tariffs.

“The hope for benefits of a return of manufacturing have not come about. There is a little bit in certain limited areas but the overall manufacturing employment, I believe, is actually even down.”

Meanwhile, Hong Kong has continued to act as a “super connector” and “super value-adder” between China and the international community through uncertain economic times, he pointed out, adding that this role has become more important than ever.

“China will continue to export. It may not export as much to the US. It will export more to Africa.

“As a commercial and investment hub, a financial hub, Hong Kong becomes even more important because it gives that flexibility of knowing the global market.”

Separately, 2001 Nobel Memorial Prize laureate in Economic Sciences and member of the Chief Executive’s Council of Advisers on Innovation & Entrepreneurship Michael Spence shared his insights on how Hong Kong can benefit from the rapid development of AI.

Mr Spence agrees that the Government can make good use of AI when providing services and suggests it should ensure balanced development across different industries when promoting AI-related policies.

“If we are going to get the full effect of AI in the economy, it has to diffuse through the whole economy.

“Previous rounds of digital adoption suggest that a few sectors and a few firms go way ahead, and other ones lag badly, so you get a big divergence. That pattern is not a good idea.

“The Government and public policy and partnerships between the private and public sector have an important role in making sure that diffusion process works.”

His views are consistent with the Government’s initiative to promote AI application across diverse industries.

The two laureates met Chief Executive John Lee yesterday to exchange views on Hong Kong’s economy, AI and education. They also spoke at the Economic Transformations in a Multipolar World - International Forum on China's Economy & Policy 2025 organised by the Chief Executive’s Policy Unit.