By Tu Haiming

At an event commemorating the 10th anniversary of the Chinese Association of Hong Kong and Macao Studies, Xia Baolong, director of the Hong Kong and Macao Work Office of the Communist Party of China Central Committee, set forth the central government’s new requirements, hopes and expectations for the governance of Hong Kong.

He specifically called on Hong Kong’s business sector to demonstrate patriotism and affection for Hong Kong, and fulfill social responsibilities by facilitating high-quality development in the city with concrete actions.

His appeal reflects the central government’s recognition of the business sector’s unique and significant role in ensuring the city’s long-term development and prosperity.

Indeed, the business sector has been the main driving force of Hong Kong’s economic growth since the city came into existence, playing a crucial role in every stage of the city’s economic development and transformation.

For example, the business sector seized on the huge opportunities arising from the global industrial transfer from Europe and the United States to Asia in the 1960s and 1970s, enabling the city to become one of the Four Asian Tigers, whose economic prowess was the envy of the world.

Hong Kong created another “economic miracle” after the Chinese mainland kicked off its reform and opening-up process in the late 1970s, when the city’s manufacturing industries relocated their factories to the Pearl River Delta (PRD), taking advantage of the region’s low land and labor costs, as well as its proximity to the huge mainland hinterland.

The northward relocation of Hong Kong’s manufacturing industries not only expanded the market and accelerated the development of the PRD, but also made room for the development of Hong Kong’s modern service industries. It is safe to say that Hong Kong’s history of development is a chronicle of the business sector’s achievements.

Hong Kong’s business sector is also an important driving force for national development. Investments from Hong Kong accounted for half of the external direct investment on the mainland in the past four decades, and are likely to continue to play a crucial role in the development of the Guangdong-Hong Kong-Macao Greater Bay Area.

Hong Kong’s business sector plays a particularly significant role in connecting the mainland with the rest of the world, leveraging its extensive ties around the globe, particularly in developed markets.

As the country is pushing for high-quality development, Hong Kong should follow suit. Chief Executive John Lee Ka-chiu put forward initiatives such as the development of “eight centers”, “headquarters economy”, “new industrialization” and the Northern Metropolis in his latest Policy Address delivered in October as part of the efforts to promote high-quality development in Hong Kong. Lee also repeatedly noted the crucial role of the business sector in advancing high-quality development and perpetuating the city’s stability and prosperity.

Xia voiced his hope that Hong Kong’s business sector will take the lead in promoting high-quality development and economic upgrading, which in turn will benefit the business sector as well as the whole city.

Xia urged the business community to align their own interests with the overall well-being of Hong Kong and the country, reflecting the central government’s expectation that the business sector sees the big picture, looks beyond the current difficulties, and balances personal interests with national interests.

Hong Kong is witnessing capital outflow caused by geopolitical tensions and interest rate hikes in the US. The city’s external trade has been lackluster as recovery in global trade remains slow.

While facing some difficulties and challenges, Hong Kong’s strengths and potential for development remain. In 2023, capital outflows to Europe and the US were offset by capital inflows from the Chinese mainland and the Middle East; the loss of local talent was offset by the import of overseas talent; whereas some foreign powers badmouthed Hong Kong, many countries remained optimistic about the city’s future. Business leaders from around the world came to Hong Kong to attend the Global Financial Leaders’ Investment Summit and other high-level forums for good reason.

First, foreign businesses still see Hong Kong as a gateway to the Chinese mainland while mainland enterprises still see the city as a springboard from which to go global.

Second, overseas business leaders have managed to see through anti-Hong Kong propaganda and realize that the city’s strengths underpinned by its status as a free port and a common-law jurisdiction remain intact.

When China opened up some 40 years ago, many looked at the mainland market with suspicion; the late tycoon Henry Fok Ying-tung was one of the few visionaries who made investments in the mainland and were later rewarded by the mainland’s economic upsurge.

On the eve of Hong Kong’s reunification with the motherland, business magnate Li Ka-shing acquired high-quality assets disposed of by their owners who had chosen to leave the city, and benefited from those purchases some years later. Both these business leaders demonstrated extraordinary vision and wisdom.

Xia said that at a time when some people defame Hong Kong and try to scare away foreign capital, and when Hong Kong’s economic development encounters bottlenecks, it is more imperative than ever for the business sector to align their plans with Hong Kong’s economic development, look out for breakthrough and growth points, and stay with Hong Kong through thick and thin.

Conceivably, the central government hopes that Hong Kong’s business sector has grand vision and will demonstrate its wisdom and help to turbocharge socioeconomic development in the city.

The housing problem remains the most intractable livelihood issue for Hong Kong. While John Lee and his administration are pulling out all the stops to come up with viable solutions, they have encountered many hurdles. Real estate developers can help expedite the execution of various solutions by throwing their weight behind the government.

Now is the best time since the 1997 handover for Hong Kong to tackle its deep-seated livelihood problems. Under the revamped electoral system, the precept of “patriots administering Hong Kong” is now firmly in place and the obstacles to good governance faced by the previous Hong Kong Special Administrative Region administrations have vanished into thin air. With the government’s staunch commitment and input from the business sector, efforts to address people’s livelihood problems will eventually bear fruit.

Hong Kong’s business sector is a key enabler as well as a beneficiary of the city’s success. It should live up to the central government’s and Hong Kong residents’ expectations and demonstrate patriotism and love for Hong Kong through concrete actions.

The author is vice-chairman of the Committee on Liaison with Hong Kong, Macao, Taiwan and Overseas Chinese of the National Committee of the Chinese People’s Political Consultative Conference, and chairman of the Hong Kong New Era Development Thinktank.

The views do not necessarily reflect those of Bauhinia Magazine.

Source: China Daily