Xia Baolong visited the Qianhai Shenzhen-Hong Kong Youth Innovation and Hub last week
Analysis
A report this week by the Economist Intelligence Unit (EIU) questioned the role of Hong Kong’s societal involvement in the Greater Bay Area (GBA) project.
Although the Hong Kong Special Administrative Region (HKSAR) leadership has engaged with the plan, “the reaction of the territory’s population and many businesses is lukewarm,” the briefing, titled “Hong Kong is Marginalised within the Greater Bay Area,” states.
“Given popular concern about a potential influx of mainland Chinese into Hong Kong,” it adds, the local government has tended to prioritize GBA schemes that help to open the mainland market for Hong Kong firms, improve cross-border transport links, or boost local housing developments, such as the proposed Northern Metropolis close to the border.
Reciprocal policies will be expected; otherwise, the territory’s policymakers risk being perceived as insufficiently supportive of the GBA initiative, leading to their views being ignored by mainland policymakers and the territory’s interests being marginalized, the report argues.
Municipal governments in the region are competing with each other fiercely, and insufficient cooperation between the Hong Kong government and its counterparts in Guangdong could result in Hong Kong’s marginalisation in major initiatives, the EIU alerts.
EIU’s assessment is that the impact of the GBA initiative on businesses within the territory, at least in the short term, “will probably be limited, owing in part to the fundamentally different regulatory regimes governing Hong Kong and mainland China.”
Some positive developments will be agreed under the GBA, including the data-transfer agreement between Hong Kong and the GBA area, agreed in December 2023. However, the overarching data-transfer regulations remain cumbersome and thus represent only a marginal improvement.
Investors should also be aware that elements of Hong Kong’s business environment that are crucial to its competitive advantage could be affected by policies and regulations introduced under the GBA umbrella.
Companies should monitor announcements about GBA-related reforms closely, as well as high-level interactions between Hong Kong officials and their counterparts in Guangdong and the central government in Beijing.
“Businesses involved in strategic industries should also monitor potential competitive dynamics between Hong Kong and other GBA cities in the mainland,” reflect the EIU analysts, echoing concerns recently stated by mainland authorities.
Xia Baolong, the head of the Hong Kong and Macao Affairs Office (HKMAO), urged Hong Kong to focus more on national integration and align itself with the GBA initiative.
Last week the SAR’s Chief Secretary, Eric Chan, said that Xia was “very, very concerned about Hong Kong,” as quoted in a report by South China Morning Post.
Xia’s comments came after meeting with the neighboring city’s top officials last week, in a two-day trip that included a visit to Hengqin and meetings with Macau’s top officials.
According to Chan, Xia urged Hong Kong to “try our very best to integrate into the mainland’s national policies, especially the Greater Bay Area initiative.”
During his visit, Xia toured the Shenzhen-Hong Kong technology zone in Hetao, where he learned about development plans for the zone and was briefed on Hong Kong’s economic situation.
Xia weighed in on the HKSAR’s economic strategy and provided guidance on how the city could collaborate more effectively with the nine cities of Guangdong Province included in the GBA, according to the Hong Kong Standard.
Chan emphasized that the visit was an opportunity to better understand how the central government was thinking about Hong Kong, “especially how we should make good cooperation with our Guangdong counterparts.”
On Wednesday, the Hong Kong government announced the appointment of Professor Frederick Ma Si-hang as the new Chairman of the Hong Kong Trade Development Council (HKTDC).
Prof. Ma is currently the Non-Executive Chairman of FWD Group and a member of the Chief Executive’s Council of Advisers. As the former Secretary for Commerce and Economic Development and Secretary for Financial Services and the Treasury of Hong Kong, Prof. Ma “is well acquainted with the Council’s work in promoting Hong Kong’s strengths and advantages,” according to a government statement.
His two-year term as HKTDC Chairman will commence on 1 June 2025 and run until 31 May 2027.
Peter K. N. Lam, the current Chairman of the HKTDC, said he is “pleased that the HKSAR Government has appointed Prof. Frederick Ma as the next Chairman. I am confident he will lead the HKTDC to new heights, creating opportunities for Hong Kong’s businesses and driving our city’s high-quality economic development.”
The HKTDC plays a crucial role in cooperation with GBA cities and in advancing the Belt and Road Initiative, which remains a key pillar of China’s international economic strategy.
While the GBA project presents opportunities, Hong Kong must navigate the complex interplay of policy alignment, regulatory differences, and regional competition to fully capitalize on its strategic advantages. PC
GBA rises as global hub for tech industry
Driven by collaborative efforts, the Guangdong-Hong Kong-Macao Greater Bay Area is emerging as a global powerhouse for future industries such as artificial intelligence and smart robotics, technology experts said this week at a forum in Shenzhen.
“Future and emerging industries such as AI, humanoid robots, brain-computer interfaces and life sciences have taken center stage in scientific and technological advancement and industrial upgrading,” said Xu Xiaolan, former vice-minister of industry and information technology and a member of the Standing Committee of the Chinese People’s Political Consultative Conference National Committee.
However, she noted that these industries are still in their early stages and require further scientific and technological efforts.
“The Greater Bay Area, with its unique geographical advantages, abundant innovative resources, rich talent pool and mature financial system, has become a hot spot for global investors and innovative enterprises,” said Xu, who is also board chairperson of the Chinese Institute of Electronics.
The institute, in collaboration with several scientific research and industry organizations, unveiled an initiative for future industry cooperation in the GBA at the forum. The initiative proposes launching more application projects, attracting more international high-tech startups, establishing an open talent service ecosystem, supporting small and medium-sized enterprises and facilitating diversified international capital investments.
“The initiative is particularly timely for Hong Kong, which is at a pivotal moment in its industrial transformation,” said Xi Ning, chair professor of robotics and automation and director of the Advanced Technologies Institute at the University of Hong Kong. MDT/China Daily
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