Chief Executive John Lee said on Tuesday that Hong Kong's economic strengths are robust enough to weather the challenges of a potential escalation in the trade war between China and the US.

Last Friday, US President Donald Trump reignited the economic conflict by announcing plans to raise tariffs on Chinese goods by 100 percent on November 1, in a row over export curbs on rare earth minerals.

Speaking ahead of an Executive Council meeting, Lee said the SAR government has responded pragmatically to the "weaponisation of tariffs" to safeguard Hong Kong's rights and interests.

He noted that mainland firms have shifted their strategic focus to seek opportunities in emerging markets, rather than focusing on one country.

Therefore, Hong Kong has boundless development opportunities in acting as a springboard for those firms to go global, Lee said.

The chief executive noted that a task force in this regard was formed last week.

"Hong Kong has weathered countless storms. We enjoy both the China advantage and the global advantage at the same time under the One country, Two systems principle," he said.

"As long as we work together to embrace change and also strive for innovation, Hong Kong's opportunities will outweigh challenges."

Lee noted that despite the tariff war, Hong Kong's economy recorded real growth of 3.1 percent in the first half of this year.

He said when Trump first raised tariffs on Chinese goods, the SAR government announced several measures in response and they have proven to be effective.

These included seizing national development opportunities, exploring new markets and accelerating industrial upgrades and transformation.

The chief executive went on to say that many Hong Kong entrepreneurs are agile and have moved their production lines to different places to mitigate tariff risks.