With China as its hinterland, Hong Kong has enjoyed enviable economic growth over the past few decades, but that is now slowing in tandem with China, amid increasing social discontent.
Also weighing on Hong Kong's economy is a curtailment in luxury spending by the Chinese visitors due to an ongoing austerity drive and corruption crackdown back home.
Data released late February showed that Hong Kong's gross domestic product grew 2.4 percent in 2015, and is expected to slow to 1 to 2 percent in 2016.
To bolster its economy, Hong Kong is cutting taxes for small and medium-sized enterprises and waiving license fees for hospitality players hurt by the slowdown.
Across the Taiwan Strait, another territory is grappling with China's slowdown; 40 percent of Taiwan's exports go to China. But the amount China is purchasing has plunged, with export orders from China falling 12.1 percent on-year in February, Reuters reported citing official data.
In the hope of diversifying its economy away from a reliance on China, Taiwan is now jostling to join the U.S.-led TPP. It has not yet been included in any such negotiations.
Nyshka Chandran contributed to this article.
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