The Central Government’s strong support of long-term development in Hong Kong, China’s future policy direction, and recognition of the Chamber’s role in the city’s economic growth were the key takeaway messages from HKGCC’s high-level mission to Beijing on 9-10 November.
Led by HKGCC Chairman Betty Yuen, the delegation of Chamber leaders as well as heads of international chambers in Hong Kong called on various government ministries and departments in the capital.
Welcoming the delegation at the historic Diaoyutai State Guesthouse, a diplomatic complex in the city’s western suburbs, Xia Baolong, Director of the Hong Kong and Macao Affairs Office of CPC Central Committee, acknowledged the Chamber’s important role in promoting Hong Kong’s economic and trade development over the past 162 years. He also recognized its contributions to the city’s prosperity and stability.
To support Hong Kong in better integrating into the overall national development, he encouraged the full and faithful implementation of the principle of “one country, two systems.” He also emphasized that business leaders should take a proactive role in the development of the Greater Bay Area (GBA) and the high-level opening-up of China.
Xia said the Central Government recognizes the immense added-value that Hong Kong as a financial hub generates for the nation, especially with its international expertise and professional services such as finance, law, logistics and talent, among others.
Expressing optimism about Hong Kong’s future development, Xia said he had utmost confidence in HKSAR Chief Executive John Lee and his governing team, as well as the advantages of “one country, two systems,” which the wider business community in Hong Kong has always supported, and which foreign firms in the city leverage for long-term growth. He also reiterated that there was no need for foreign investors to worry about any changes to the business environment in Hong Kong. Last, but not least, the Central Government was positive about the outlook for Hong Kong and would continue to provide unwavering support for the growth and prosperity of the city.
Speaking at the meeting, Yuen said that as a highly open and externally oriented economy, Hong Kong was vulnerable to factors such as geopolitical tensions, economic uncertainty, inflation and rising interest rates, which have impacted recovery. Coupled with intense global competition and acute talent shortage, Hong Kong was indeed facing a hard time, she added.
Yuen also emphasized that China’s stable development served as a strong and reliable backing for Hong Kong. “As such, the business community agrees that we should dovetail with the country’s strategy of high-quality development to integrate into the overall national development by actively taking part in the development of the GBA and the Belt & Road,” she said.
Shared Future to Benefit All
Although the world had seen all kinds of challenges throughout its history, overall development was on an upward spiral, said Wang Ping, Director General of the Third Bureau of the United Front Work Department of CPC Central Committee and Secretary General of the China Overseas Friendship Association. She added that the Chamber’s position echoed President Xi Jinping’s idea of building a common community with a shared future for mankind, which requires the removal of various barriers in terms of system, economy, culture and nature. This would facilitate the flow of people, goods and capital, and ultimately, economic and trade development around the globe.
She also noted that interconnectivity via the internet was essential to building a community with a shared future in cyberspace, and therefore integral to socioeconomic development and international cooperation. She said China would continue to pursue high-level opening-up to create new opportunities for the world. Meanwhile, we should keep sharing good stories of Hong Kong and the country to Asia and the world for a win-win outcome.
Important Player in Global Supply Chains
With China recording 5.2% GDP growth year-on-year in the first three quarters, the economy is continuing to improve, and is on track to reach its annual growth target of 5%. Zhang Shaogang, Vice Chairman of China Council for the Promotion of International Trade, said all 39 major industries had experienced growth, especially high-tech manufacturing, which was sustaining very rapid growth.
As the world’s second-largest economy and consumption market, China is a major player and advocate of the global industrial supply chains, facilitating the flow of capital, industrial capacity and technology. Zhang explained that supply chain interconnectivity would pave the way for a bright future of “Chinese-style modernization” and contribute to the prosperity of the world.
Livelihood Projects in B&R
Pan Jiang, Deputy Director-General of the Department of International Cooperation of the National Development and Reform Commission said President Xi was highly invested in the socioeconomic development in Hong Kong.
Pan referenced the report of the 20th National Congress last year, which indicated the Central Government’s full support for Hong Kong to better integrate into national development. Plans to foster socioeconomic growth would strengthen Hong Kong’s global status in areas such as finance, trade, maritime, innovation and technology.
As this year marks the 10th anniversary of the Belt and Road Initiative, Pan said China had not only taken forward many “high-end” international projects in its process of opening up, but had also participated in many “small yet smart” livelihood projects. The country would work to expedite the development and implementation of these “small yet smart” projects to further enhance the role of the Belt & Road to promote growth in various areas, from livelihood to green development.
Robust Green, Low-carbon Economy
Long Guoqiang, Vice President, the Development Research Centre of the State Council, pointed out that the country has witnessed obvious changes in the structure of its export products. In the past, China mainly exported low-end products. With its manufacturing sector expanding rapidly thanks to improving skill levels, high-tech industries have become a key direction for China’s exports.
Going forward, China will step up efforts to promote green trade, green investment, the development and application of low-carbon technologies and products, as well as international cooperation in green development to achieve sustainable growth.
Long said the transition to a green and low-carbon economy has presented tremendous opportunities in green services, technology and development for countries around the world.
The business community in Hong Kong should proactively grasp new opportunities arising from the green economy by accelerating the development of a robust green and low-carbon economic system.
Easing Market Access for Foreign Investment
Appreciating the important contributions that Hong Kong entrepreneurs have made to the country’s social and economic growth despite the challenging global landscape, Fan Shijie, Director General, Department of Taiwan, Hong Kong and Macao, Ministry of Commerce, said foreign trade in China would be on the uptick in the long term, given its solid foundation. China will further ease market access for foreign investors and ramp up efforts to lure investment to areas such as manufacturing, digital economy and green development, with a view to driving high-quality development in commerce and trade for mutual benefits.
Upon returning from the mission, Yuen expressed gratitude to the Central Government for its strong support for Hong Kong’s development and emphasis on the city’s international status. The “one country, two systems” principle, which has remained unchanged, served to instill confidence in the business community in Hong Kong. Meanwhile, China’s steady progress, with investment focusing on green and digital economic development, would create significant business opportunities. Hong Kong businesses have to seize these opportunities by integrating with national development.
During the mission, the delegation also met Yuen Wai Yin, Deputy Director of the Office of the Government of the HKSAR in Beijing. Both sides discussed and shared views on current economic issues in Hong Kong and the Mainland. They also attended a networking dinner with the Hong Kong Professionals (Beijing) Association, and met members of the Hong Kong Association of China Business in Beijing.
The trip included a tour of the Exhibition Center at the Zhongguancun National Innovation Demonstration Zone – a major technology hub that is home to nearly 22,000 companies – and a lunch meeting with various enterprises operating in the zone.