China’s astonishing economic growth has been driven in part by the success of its regional development model. Perry Wong, Managing Director, China, Milken Institute, and the author of “Best Performing Cities China Index,” shared his in-depth analysis of China’s regional development strategy at our hybrid seminar on 26 July.
The index traces the key factors contributing to the economic success of the top Chinese cities. In particular, the speaker drew the audience’s attention to Haikou and Changsha, and some third-tier cities in Anhui Province. He explained that their development has been based on the growth of existing regional clusters, expansion of transportation infrastructure, utilization of new technologies as well as promotion of entrepreneurship.
Understanding how the regional development model fits in to the economic landscape in the Mainland can help businesses better grasp the potential opportunities in the different cities and regions.
A group of members enjoyed a visit to the Hong Kong Palace Museum on 18 July, organized by the Chamber’s LegCo Representative Jeffrey Lam. Betty Fung, CEO of the West Kowloon Cultural District Authority, welcomed the group before their tour of the thematic and special exhibitions.
Hundreds of priceless treasures are on display in the newly opened museum, including items on loan from the Palace Museum in Beijing as well as artefacts that have never been seen by the public before.
Gregory So, Deputy Committee Director, and Raymond Yip, Hong Kong Chief Representative, Consultative Committee on Guangdong-Hong Kong Co-operation (Guangzhou Nansha) attended the China Committee meeting on 15 July, where they discussed the current policies of the Nansha district in Guangzhou and its role as a gateway to the Greater Bay Area.
At the same meeting, Eric Fok was re-elected as Chairman of the Committee, and SH Chan, Felix Lee and Edmond Yew were re-elected as Vice Chairmen.
Major infrastructure development is on the way as part of Hong Kong's Northern Metropolis Development Strategy. At a seminar on 18 May, Marcos Chan, Executive Director and Head of Research for Hong Kong SAR, CBRE, introduced his firm’s latest report on Hong Kong’s infrastructure outlook, and discussed what the development of the city's transport and real estate infrastructure means for investors and businesses in Hong Kong.
The extensive new roads and railways will provide rapid links from Hong Kong to the Mainland, including faster links to the airport.
Chan noted that a significant part of the Northern Metropolis development would be in the logistics and innovation sectors, and said that much of the residential space had been allocated for public housing. He added that the current Harbour Metropolis would remain home to the financial sector, so he did not expect to see an exodus of businesses from the city’s original CBD.
Steven Choi, Head of Tencent Cloud, Hong Kong and Macao, briefed members on how they can access the Mainland market despite the closed border at a Chamber webinar on 25 April. He explained how using a well-developed cloud platform can guide businesses through each step in the process, including business registration, collaboration, and security, as well as developing a robust go-to-market solution. He also explained that, considering the unique customer behaviour in the Mainland market, customized interaction and engagement were crucial to businesses’ success.
Jeffrey Lam, Chamber’s LegCo Representative, Member of the CPPCC National Committee and Vice Chairman of the Committee for Liaison with Hong Kong, Macao, Taiwan and Overseas Chinese, and Nick Chan, Vice Chairman of the Chamber's Legal Committee, Hong Kong Deputy to National People's Congress, shared with committee members on the key messages of 2022 China’s Two Sessions at the China Committee meeting on 24 March.
China's Two Sessions took place in early March in Beijing. At a Chamber webinar on 18 March, a panel of experts shared their insights from participation in these key annual meetings. Anthony Wu, Member of the Standing Committee of the CPPCC National Committee; Jeffrey Lam, David Lie and Stanley Hui, Members of CPPCC National Committee; and Nick Chan, Hong Kong Deputy to National People’s Congress, shared their thoughts on what this year’s Two Sessions revealed about the Central Government’s plans for economic and social development in the year ahead.
Two of the key themes of the meetings were “stability” and “common prosperity” and the speakers explained how these concepts were likely to be interpreted as part of the nation’s development. They also discussed how Hong Kong can integrate with the country’s overall plan in 2022 and beyond. Getting the Covid situation under control is the first priority for Hong Kong that will also enable its economy to get back on track. In terms of the development in the Greater Bay Area, the speakers suggested that the information and technology industry in Hong Kong will be a major stakeholder as the region develops. They also provided updates on improving the rule of law in the Mainland and Hong Kong, including reducing corruption and boosting IP protection.
The fifth session of the 12th Guangdong Provincial Committee of the Chinese People's Political Consultative Conference (CPPCC) was held in Guangzhou from 19 to 21 January. At a Chamber webinar on 24 February, Pang Chun Yu and Eric Fok, members of the Standing Committee of CPPCC Guangdong Committee; and Siu Hung Chan and Victor Lam, members of CPPCC Guangdong Committee, shared their insights from their attendance at the event.
As the provincial committee will continue its support of the development of the Greater Bay Area and the two cooperation zones, the speakers advised members on how businesses can take advantage of the development strategies in the GBA. They also said that in-depth regional integration -- in particular the consolidation of I&T development and among young professionals with a variety of expertise -- will be indispensable factors in Hong Kong’s economic recovery.
China's 14th Five-Year Plan emphasises the need to encourage the nation’s digital economy, through upgrading traditional industries, creating new sectors and ways of operating, and strengthening economic development. At a seminar on 18 February, Cecilia Lee and Tiffany Wu, Transfer Pricing Partners at PwC Hong Kong, discussed the key highlights of the digital economy in the 14th Five-Year Plan.
Changes to the international tax landscape are also coming in the near future, and the speakers also discussed the latest developments with BEPS -- the OECD's plans to tax the digital economy and for a minimum global tax. They suggested MNCs to establish cross function team, and utilize models and automatic tools to predict the future cost for compliance as the ways to deal with the stricter requirements and challenges of the plan.
David Wang, Chief China Economist at Credit Suisse, updated members on China’s economic outlook in 2022 at the China Committee meeting on 13 January 2022. He was quite optimistic about the Mainland’s economic prospects in the year ahead. Wang said that the main theme of the economy would be a new regulatory era, and he expects that most of the new regulations that have been passed recently will be implemented during the first quarter of this year. Over 60 members joined the meeting.