Analysis | Critics perplexed over how ‘One Belt One Road’ can benefit Macau, HK

Agnes Lam

Hong Kong critics of China’s “One Belt One Road” (OBOR) initiative, and those skeptical of what benefits the economic arrangement could bring to the territory, were left perplexed on the weekend after the cryptic comments of a member of HKSAR’s Executive Council.
In Macau, the policy is being increasingly cited in official documents and has become part of the government’s goals. Chui Sai On said that the region “will actively take part in the One Belt One Road strategy” during  yesterday’s reception organized by the Central Liaison Office in Macau (see page 2).
Laura Cha, a member of Hong Kong’s Executive Council,
reiterated the government’s line, stressing the economic benefits that the “Belt and Road” initiative would bring to the territory. She also warned that concerns regarding alleged violations of the “One Country Two Systems” policy should not affect the HKSAR’s economic integration with the mainland.
“What we can do, really, is promote Hong Kong [through
being a part of the OBOR agreement] – to elevate our position as an international financial center. There will be a lot of other countries that would be interested in this, because everybody sees that this will be a new area of economic development for the next decade or so,” she told TVB Pearl.
“We have always been an international financial center, and the reason for that is that international investors have confidence in our market, in our system,” added Cha, who is also the head of the Financial Service Development Council.
The government official appeared to be referring to Hong Kong’s expected role as a facilitator for mainland enterprises “going global.” In this sense, Hong Kong’s expertise in certain professional services – such as finance, law, tax, and risk assessment –
can provide mainland Chinese investors with the tools and knowledge to manage investment in other countries included within the scope of the agreement.
However, critics in Hong Kong have said that they don’t understand how the strategy
can benefit Hong Kong.
Mark O’Neill, writing in the Hong Kong Economic Journal, claims that there are many in the city that question what the project could possibly have to do with Hong Kong, “a city with almost no industry and no historical connections to most of these countries [in the scope of OBOR].”

Larry So

“To many [people], CY Leung’s initiative has more to do with politics than economics,” added O’Neill.
“Hong Kong needs to be a part of the arrangement to fully benefit from it,” said Larry So, a local scholar and current affairs analyst, before adding that investors “would still use Hong Kong’s services, with or without the agreement. In Hong Kong, they have this opportunity already.”
In Macau, it may be difficult to understand why Beijing would be so interested in expanding the agreement to include the casino hub. According to official lines, the region’s unique position as a former Portuguese enclave gives it a unique relationship with other Lusophone countries.
Agnes Lam, assistant professor from the Department of Communications, University of Macau, corroborates this idea by claiming that Macau “can use [its] connections with the Portuguese culture and language to influence others.”
“Our connections soften the distance,” she told the Times. “It’s easier for us to feel closer to these countries.”
The case of Goa is a good example, Lam says. “I have never been there,” she admits, “but I feel some sort of connection with them [the people of the enclave], because I have researched the area in depth.”
However, with the possible exception of the former enclave of Goa, there are no Portuguese-speaking states within the current, imagined scope of OBOR.
In reality, many regard Macau’s involvement in the program partly as a “favor” from the mainland in terms of helping to drive tourism and to reduce the city’s reliance on the gaming industry.
Agnes Lam goes further in suggesting that the Belt and Road Initiative can be seen in the larger context of an increasingly interconnected world. She regards it as “the next step in globalization,” tying countries in the Central Asian region with the capital outflows and infrastructure projects of China and the mature financial institutions of West.
The strategy focuses on “the remaining part of the world that needs development,” Lam told the Times, referring to Central Asia. The UM professor did not make mention of the under-developed areas of sub-Saharan Africa.
“But this is not really what the Central Government has in mind,” Larry So wryly observed.
Instead, the involvement of Macau may have more to do with “demonstrating to Taiwan that the ‘One Country Two Systems’ policy can work –
because its not working well in Hong Kong.”
Despite criticism from the Pan-Democracy camp in Hong Kong, Chief Executive Leung seems decided on pressing ahead – that’s if the 48 mentions of the “Belt and Road” initiative in his recent Policy Address are anything to go by.
But while the term was frequently mentioned in CY Leung’s Policy Address, the references involved little material of substance, aside from the intention to create a dedicated office to aid the incorporation of Hong Kong into OBOR.
Without an accompanying substance, some were led to believe that CY Leung was paying “lip-service” to Beijing.
A photo of a newscaster from the Hong Kong-based satirical magazine 100Most went viral last week in response to Leung’s Policy Address. The picture mocked the Chief Executive’s frequent referencing of the “Belt and Road” initiative by depicting the news anchor with one nipple covered and the other exposed.
“One Belt, One Road” in Cantonese roughly translates to “Yat Dai, Yat Lo,” but “dai” can mean “belt” or “wear”, while similarly, “lo” can mean “road” or “expose”.
Larry So concluded: “Leung really wants to expand his influence […] his critics don’t like it but they will go along with it.” Staff Reporter