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Hong Kong's goverment has so far made an annual $4.3 billion payout to mainland Chinese companies, but the city's leader has said the territory can do much more to grow its economy by attracting more investment. Ms Lam said a study into the city's overall competitiveness is under way, adding that the territory has been struggling with its economic position in the past years. She said Hong Kong is the world's most competitive free-trade area, and the city should not be worried about a trade war. "Hong Kong is very, very competitive. It is a global hub," she said. "It's a critical position. I think we have got great success. It's a big achievement." The mini-budget announced on Tuesday includes several measures to help Hong Kong's businesses, including tax relief on foreign-invested enterprises and a freeze on fresh tuition hikes. Ms Lam added that the government also plans to announce its flagship public policy "establishment of an independent oversight mechanism to scrutinise government policy decisions" at the end of this month. The independent oversight mechanism will be able to ask the government for explanations over government policy decisions. Related Story Hong Kong needs to rethink tax incentives as public anger grows The United States and China, which have been trading tit-for-tat tariffs, have engaged in a bitter dispute over allegations of Chinese misbehaviour in Hong Kong. Beijing has denied the claims. On Monday, the United States announced a package of measures aimed at curbing China's alleged theft of US trade secrets. Ms Lam said the government is determined to stop the escalating trade conflict. "I think the most important thing is to make sure we remain a stable trading partner with the United States, and we are determined to find a way out of the trade conflict," she said. "We have to respect each other's position. We have to respect each other's views, and we have to find a win-win situation. That is the most important thing." The Hong Kong leader's remarks were her first since the US announced the package of sanctions, and came just after the US announced additional tariffs on US$300 billion of Chinese imports. Ms Lam said she has had a number of telephone calls with US officials. Hong Kong, a former British colony, was handed back to China in 1997 and was promised a "high degree of autonomy" under a framework of "




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