By Lau Siu-kai

Since the founding of the People’s Republic of China, the central government has considered the “Hong Kong question” from the perspective of the country’s fundamental interests and overall development. The strategic goal of the central government’s “long-term planning and full utilization” policy for Hong Kong before its return to the motherland and the implementation of the “one country, two systems” policy after the handover, was to enable Hong Kong to help build a modern and strong socialist China by playing a unique role while retaining the distinctive characteristics of its capitalist system.

Of course, Hong Kong’s role will also change at different stages of national development, especially under various domestic and international situations. Therefore, at different stages of the country’s development, although the central government will still be committed to preserving the essence of Hong Kong’s capitalist system, there will also be some adjustments to the central government’s policies toward Hong Kong to ensure the sustainable development of the city and enable it to continue to contribute to national development.

In the early days after the handover, Hong Kong could still play a role in the development of the country on the same basis as before, especially in introducing capital, enterprises, talent, technology and management models into the Chinese mainland and assisting the nation’s enterprises with tapping into overseas markets. However, with the country’s rapid development, scientific and technological progress, industrial transformation and upgrading, and significant improvement in people’s living standards, the country’s comprehensive national strength has increased dramatically.

In contrast, Hong Kong was hit hard by the Asian financial crisis immediately after it returned to the motherland. The city’s economy was severely affected, and the problems caused by an overly narrow industrial base and insufficient long-term economic growth momentum were also fully exposed. Therefore, the central government had to consider how to boost Hong Kong’s economic vitality. Since then, it has introduced many favorable policies and measures to promote Hong Kong’s economic transformation and growth, resulting in closer economic, trade and financial ties between Hong Kong and the mainland. This has boosted Hong Kong’s development opportunities. At the same time, in the process of continuous development, the central government’s original policy of focusing on “bringing in” has become a policy of equal emphasis on “bringing in” and “going out”.

Hong Kong’s primary role in the country’s development process has thus become a bridge and channel between the mainland and the outside world, providing related services. In recent years, the United States-led West have tried every means to contain China’s rise. China has had to adjust its development strategy in response. The Belt and Road Initiative is particularly crucial because China is attempting to break through the containment of the US and its allies. As a part of China, Hong Kong is not immune to the hostility and sanctions from the US-led West, and can no longer rely on the latter as the driving force for economic development as it did in the past.

Instead, Hong Kong must proactively tap the development opportunities offered by the mainland and developing countries. Under the new turbulent international context, the central government not only continues to increase its efforts to support Hong Kong’s development but also plays a leading role in promoting the city’s integration into overall national development as soon as possible and accelerating the pace of its industrial transformation.

For this reason, the central government allows Hong Kong to participate in the national five-year plans, encourages Hong Kong to actively contribute to the Belt and Road Initiative and the Guangdong-Hong Kong-Macao Greater Bay Area, promotes the development of “eight major centers” in Hong Kong, and supports Hong Kong to become the world’s leading offshore renminbi business hub.

It can be observed that the central government has increasingly used top-level design to incorporate Hong Kong’s development into the overall national development strategy, allowing the city to better leverage its unique advantages to support, align, and cooperate with the country’s development. This trend is vividly demonstrated in the resolution adopted at the recently concluded third plenary session of the 20th Central Committee of the Communist Party of China.

The resolution includes comprehensive reform proposals for promoting Chinese modernization and building a high-standard socialist market economy but does not focus much on Hong Kong. However, many of proposed reforms will create endless opportunities for Hong Kong.

Hong Kong is an international metropolis with many unique advantages under the “one country, two systems” policy. As long as Hong Kong works hard, innovates, and relentlessly reforms, it should be able to use those opportunities well. By promoting Hong Kong’s economic development and industrial transformation and improving people’s livelihoods, Hong Kong can contribute its strength and wisdom to Chinese modernization.

Two sections in the resolution are about Hong Kong’s future development, highlighting the central government’s expectation that Hong Kong will work harder in several areas in the coming years to align with the country’s development priorities.

Section 19 of the resolution calls for reform measures to enable regions like Beijing-Tianjin-Hebei, the Yangtze River Delta and the GBA to better play their roles as engines of high-quality development.

Promoting national economic development through regional economic development is obviously one of major features of the national development strategy.

This makes sense because these regions have solid foundations, high levels of development, strong momentum in technological and institutional innovation, a high degree of economic integration, and strong external ties. They can rely on technological and institutional innovation to promote their continuous development and the country’s well-being and serve as a model for the whole country. The resolution also calls for deepening cooperation and strengthening the alignment of rules and mechanisms within the GBA, and accelerating the Hong Kong and Macao special administrative regions’ integration into the overall national development strategy through active participation in the construction of the GBA so that the two SARs can achieve continuous development, procure opportunities to realize industrial transformation and upgrading while also contributing to the country’s reform, opening-up, and development.

Hong Kong needs to be more actively involved in the construction of the GBA, better integrate with the development strategies of the partner cities in the GBA, reduce obstacles caused by differences in systems, policies, laws and rules, and facilitate the GBA to become a highly integrated regional economy as soon as possible.

Section 27 of the resolution calls for measures to harness the institutional strengths of the “one country, two systems” policy to consolidate and enhance Hong Kong’s status as an international financial, shipping and trade center, to support Hong Kong and Macao in building themselves into international hubs for high-caliber talent, and to elevate Hong Kong and Macao’s role in the country’s opening-up to the outside world.

In the national development strategy, these three centers of Hong Kong (international financial, shipping and trade centers) are significant to the country’s reform, opening-up, and development. The central authorities are of the view that these three major centers of Hong Kong are still internationally competitive, and hope that Hong Kong can use these three significant centers to play a hub role for the countries participating in the Belt and Road Initiative and connect those countries more closely with China, thus promoting the rise of and integration of Eurasia as a vast economic region.

Under the country’s proactive talent policy, the desire for foreign-funded enterprises and overseas talent to operate in Hong Kong will increase. Hong Kong can become a talent pool that gathers talent from around the world who can contribute to the development of the country and Hong Kong. Compared with many mainland cities, Hong Kong enjoys advantages in attracting overseas and returnee talent, including cultural diversity, competitive wages and remuneration, global connectivity, alignment with international standards, and the opportunities available from the GBA.

Hong Kong’s talent pool will certainly not only serve the city. Many talented people hope to use Hong Kong as a base for exploring development opportunities on the mainland and overseas. Therefore, while serving Hong Kong, they can promote connections and cooperation between Hong Kong and the mainland and abroad. They can actively participate in the work of mainland enterprises and institutions, including teaching and research, and they can also tell the good story of Hong Kong and the nation through their overseas connections. In short, Hong Kong’s talent pool can help the country’s development.

All in all, under the guidance and support of the country, Hong Kong will continue to integrate into the overall development of the country, generate more development momentum for itself, and make new contributions to the country’s development.

The author is a professor emeritus of sociology, the Chinese University of Hong Kong, and a consultant for the Chinese Association of Hong Kong and Macao Studies.

The views do not necessarily reflect those of Bauhinia Magazine.

Source: China Daily