Since it was established in 1949, the transformation of the People’s Republic of China has been remarkable. The country has evolved from a primarily agricultural society to a global economic powerhouse driven by strategic reforms, industrialization and technological innovation.
In recent years, China has continued to adapt its economic policies to stimulate growth and address challenges, including a struggling property sector, a declining birth rate and geopolitical conflicts. While the growth rate has moderated, it remains robust compared to global standards. In 2023, China’s GDP was US$17.7 trillion, showcasing the scale of its economy.
“China is in high gear as it pursues high-quality development and advancing as a modernized country,” said Chamber Chairman Agnes Chan. “The Central Government’s commitment to achieving carbon neutrality by 2060 has catalyzed investments in green technologies and infrastructure. The nation is committed to becoming a leader in various fields, from the space programme’s Moon and Mars explorations to the rapidly expanding Belt and Road Initiative (BRI).”
One of China’s most significant achievements in the past seven decades is its success in alleviating poverty, which has been achieved through implementing targeted programmes while improving access to education, healthcare, and infrastructure in rural areas.
Jeffrey Lam, the Chamber’s LegCo Representative, said social stability laid a solid foundation for economic development and business prosperity, pointing out that almost 100 million rural residents had been lifted out of poverty in the Mainland, a testament to China’s economic strength.
The Government has also heavily invested in critical sectors such as artificial intelligence, semiconductors, renewable energy and biotechnology. Cities like Beijing and Shenzhen have become hubs for AI start-ups and research institutions, while companies such as Alibaba, Baidu and Tencent are at the forefront of developing applications ranging from facial recognition to autonomous driving.
“With China’s economy growing even faster in recent years, technological progress has experienced significant breakthroughs, as seen in the growth momentum of the China-made electric vehicle market,” said Lam.
Chan highlighted the Central Government’s Next Generation Artificial Intelligence Development Plan, which continues to guide investments and policy frameworks, with the goal of becoming the world’s primary AI innovation hub by 2030.
In recent decades, China’s presence on the international stage has burgeoned significantly, transforming it into a key global player as it invests in infrastructure projects worldwide through the BRI to strengthen economic and cultural links.
“As the nation deepens its trade connections with other countries, the Central Government and Chinese businesses will continue to emphasize collaborative and sustainable growth, ultimately benefiting our world economy overall,” said China Committee Chairman Felix Lee.
An Enduring Partnership with Hong Kong
“The 75th anniversary is not only a celebration of China’s achievements but also a recognition of the benefits that Hong Kong derives from its unique status under the ‘One Country, Two Systems’ framework,” said Chan, adding that it has allowed Hong Kong to retain its distinct economic and legal systems while enjoying the advantages of being part of the Mainland economy.
These factors have enabled Hong Kong to maintain a competitive edge, facilitating trade and investment flows between China and the rest of the world. As a result, the city has become a vital conduit for foreign capital entering the Mainland, thus enhancing its economic resilience, she noted.
Lam emphasized that Hong Kong and China’s economic development have always been deeply intertwined. “Since the country’s reform and opening up, many Hong Kong businesses have invested and set up factories in the Mainland, demonstrating the strength of their partnership,” he said, adding that he had also set up a toy factory there as early as in the 1970s.
With Hong Kong as an important bridge and gateway connecting the Mainland and overseas markets, Lee said the China Committee would continue its outreach initiatives to various Mainland cities.
“We have organized a few delegations in 2024 already, visiting government officials and well-known enterprises in Shenzhen, Jiangmen, Zhongshan, Chongqing and Xiamen,” he explained. “We also host Mainland government officials and businesses when they visit Hong Kong. Our committee welcomed over 25 delegations this year. We gather feedback and ideas from our members and put together policy recommendations for the right stakeholders and government departments. We constantly engage with our members to help them connect with the right business development and investment opportunities.”
Integration through the GBA
Chan also underlined the importance of the Greater Bay Area (GBA) initiative, which presents significant potential and opportunities for better integration.
“The GBA initiative encourages innovation, technology transfer and talent exchange, allowing Hong Kong to leverage its strengths in finance and services while contributing to the overall economic dynamism of the region,” she explained.
“When we speak to governments and businesses outside of the GBA, they are often surprised at the relaxation of restrictions and new policies in the GBA, made only possible under the ‘One Country, Two Systems‘ governance framework,” said Lee. “We have many unique policies catered for Hong Kong under the GBA framework, such as wealth connect, stock connect, etc, which effectively help to create a new GBA market that greatly benefits both Hong Kong and the cities within the GBA framework.”
In the future, Hong Kong has to give full play to its role as a super-connector in the BRI, emphasized Lam. “It is this role that will help Mainland enterprises go global and bring in foreign investment, underscoring the significance of their contribution.”