Financial Secretary Paul Chan said on Monday the global trade war could endanger global technology development.

Speaking at the inaugural World Internet Conference Asia Pacific Summit on Monday, he said governments and regulators around the world are facing challenges in such areas as cybersecurity, data privacy and cross-border regulatory arbitrage but that digital fragmentation is a more urgent concern.

“The trade war initiated by the United States is likely to extend beyond tariffs," Chan said.

"We can foresee more barriers, ‘larger yards’ and ‘higher walls,’ which could stifle innovation and jeopardise global technological progress,” Chan said.

In order to deal with the challenges and hold on to opportunities brought by the digital economy, he said the government has established a concrete action plan, which covers areas like digital infrastructure and governance, digital transformation, cross-boundary flow of data and talent development.

Speaking at another conference, one on Jiangsu-Hong Kong innotech, he also said the US trade war is affecting the international trade order and putting the global industrial and supply chains at risk of disruptions.

He said Hong Kong will make good use of its connectivity with both the mainland and the world and join hands with more mainland enterprises to attract investment from around the world.