The 19th National Congress, which concluded in Beijing in October, has ushered in a new era for China that is creating a wealth of opportunities for Hong Kong.

The five years since the last National Congress have seen tremendous advances in the Mainland, from huge reductions in poverty levels to breakthroughs in science and technology. Major initiatives such as the Belt and Road Initiative (OBOR) and the Greater Bay Area (GBA) suggest that development is set to continue at a rapid pace.

Hong Kong has a crucial role to play in the nation’s continuing progress and success. To discuss the outcomes of the National Congress, senior Mainland officials welcomed a high-level delegation from Hong Kong’s business community to Beijing on 4-5 December.

Stephen Ng, Chairman of the Hong Kong General Chamber of Commerce, led the 27-member, high-level delegation, which was received by You Quan (below), Secretary, Secretariat of the Central Committee of the Communist Party of China and Director-General, the United Front Work Department of the CPC Central Committee.

With the recent conclusion of the 19th National Congress, Chamber members were eager to gain a first-hand understanding of the country’s new policy direction, and also share our view with the Central Government on how Hong Kong can contribute to the country’s development.

You told members that the 19th National Congress marks a new chapter for the development of socialism with Chinese characteristics, and that the country will put forward new reforms to develop China into a modern power by 2050.

As part of this, he said, “China will need to focus on resolving social conflicts arising from unbalanced and inadequate development. A sizable gap still exists between the country’s production capacity and meeting people’s basic living needs. As a free port, Hong Kong can play an active role in helping the Mainland to narrow this gap.”

Secretary You emphasized that immense opportunities continue to exist for Hong Kong. Given its advantages of robust services sectors and a huge offshore RMB market, Hong Kong enterprises must adapt to the new landscape in the Mainland, and align with new developments to seize the opportunities.

Ng said that Hong Kong companies are proactively understanding and trying to capitalize on the new opportunities presented by the 19th National Congress. “Both the Hong Kong SAR Government and businesses strongly support the development of innovation and technology to cater to the future needs of the country,” he said.

Zhang Xiaoming, Director, Hong Kong and Macao Affairs Office of the State Council, explained in detail during a two-hour meeting the key messages and spirit of the 19th National Congress, as well as how China plans to expand its reforms to progress along the path of developing socialism with Chinese characteristics.

He pointed out that over the past five years, the country introduced more than 1,500 reform measures. Currently, China’s GDP stands close to 80 trillion yuan, and the country has set a goal of turning itself into a moderately well-off society in the next three years and lifting everyone in the country out of poverty.

He also stressed that the Central Government supports strengthening cooperation between the Mainland and Hong Kong, and the latter’s participation in the national development blueprint.

The GBA’s development

Two major plans of the Central Government are of particular interest to Hong Kong as they present tremendous opportunities for local companies to leverage their unique capabilities.

The GBA development will link Hong Kong and Macao with nine cities in Guangdong Province to create an integrated economic hub. This initiative aims to not only improve infrastructure, but also to ensure that the different cities focus on their key strengths and complement one another.

The GBA presents a golden opportunity, and is especially important for the future development of the younger generation in Hong Kong. With its international expertise, mature market, rule of law and efficient professional services, Hong Kong has ample room to contribute to the development of the GBA. As part of this, the Central Government has been rolling out measures to enable Hong Kong people to study, work and live in the Mainland.

The Belt and Road Initiative, first suggested by President Xi Jinping in 2013, aims to revive the historical Silk Road routes through a network of transport and infrastructure links. Gao Yan, Deputy Minister of Commerce, said that the initiative is bearing fruit.

In the first three quarters of 2017, Mainland enterprises invested US$9.6 billion in 64 countries along the Belt and Road, up 4% year on year, and Gao expects this growth trend to continue steadily.

She pointed out that a total of 75 overseas economic and trade cooperation zones have been set up in 44 countries and regions along the Belt and Road. Some 3,400 Chinese companies set up operations in the zones, creating 240,000 jobs. She stressed that the Ministry of Commerce will give full support to Hong Kong’s participation in projects in these overseas cooperation zones.

Zou Yong, Counsel of the Department of Regional Economy, the National Development and Reform Commission, said a plan for the GBA initiative had been drafted for the consideration of the State Council. He said he hoped it would be approved quickly, and implementation details rolled out in early 2018.

He highlighted the significance of the GBA initiative, which will support Hong Kong and Macao in furthering each city’s own development plans into the country’s overall development. Zou added that the initiative would also enhance the competitiveness of the Pearl River Delta region as a whole, and elevate the PRD into a world-class regional economy.

As the GBA initiative will focus on innovation, coordination, green development, opening up and sharing, experts from various sectors may be invited to discuss planning and implementation details, which will also look at tackling geographical, cultural and institutional differences.

Chamber Deputy Chairman Aron Harilela said the GBA development needs Hong Kong to help fulfill its potential, and at the same time Hong Kong needs the GBA to expand its economic growth. “We hope that the tax differences can be resolved, and the free flow of talent and capital can be realized as soon as possible,” he said.

Key role for Hong Kong

Hong Kong’s role in the GBA was also a key topic of discussion during the visit of Tieniu Tan, Vice Minister of the Liaison Office of the Central People’s Government in Hong Kong, to the Chamber on 30 November (see page 48-50). The Vice Minister noted Hong Kong’s achievements in science and technology, as well as discussing how the city can work together with its neighbours.

“I truly believe that Hong Kong has the best opportunity in science, technology and innovation right now – because of strong support from the Central Government and the determination of the local Government,” he said.

During the Chamber’s visit to Beijing, Qiu Yuanping, Director, Overseas Chinese Affairs Office of the State Council, told delegates that the number of overseas Chinese has reached 60 million and the economic contribution of Chinese enterprises around the world had amounted to at least US$5 trillion.

To achieve the goal of developing China into a modern power and seize opportunities arising from the Belt and Road, she said the office is making efforts to maintain close contact with local and overseas Chinese, with a view to building the country together.

The office organizes more than 20 investment promotion activities every year. “Qiaomengyuan,” also known as the “Dream Incubator for Overseas Chinese,” is its priority project to attract overseas Chinese to invest and work in their home country. Currently, there are 17 Qiaomengyuan projects across the country. These innovative industrial clusters provide Chinese businesses with comprehensive services covering financing, land grant, completion of formalities, recruitment and international community facilities.

Ng called the trip insightful and fruitful, and said that he is full of confidence about the country’s future development. He added that Hong Kong businesses need to be more proactive in updating themselves on the latest developments and innovations taking place in the Mainland to build greater synergies and closer cooperation.

ABOUT THE MISSION

The 27-member delegation was led by Stephen Ng, Chairman of the Hong Kong General Chamber of Commerce (HKGCC), with Deputy Chairman Aron Harilela, Vice Chairman Leland Sun and LegCo Representative Jeffrey Lam as deputy leaders. Tieniu Tan, Deputy Minister of the Liaison Office of the Central People’s Government in the Hong Kong SAR, was the Honorary Advisor. Guo Hengbin, Deputy Director-General of the Coordination Department, Liaison Office of the Central People’s Government in the HKSAR, and Gracie Foo, Director of the Office of the Government of HKSAR of the People’s Republic of China in Beijing, were delegation Advisors. Other delegates included members of the Chamber General Committee, and chairmen and vice-chairmen from various committees and the Chairman of the French Chamber of Commerce and Industry in Hong Kong.

The HKGCC delegation was received by You Quan, Secretary, Secretariat of the Central Committee of the Communist Party of China and Director-General, the United Front Work Department of the CPC Central Committee. The delegation also called on Zhang Xiaoming, Director, Hong Kong and Macao Affairs Office of the State Council, Qiu Yuanping, Director, Overseas Chinese Affairs Office of the State Council, Gao Yan, Deputy Minister of Commerce, Dai Junliang, Deputy Director of the United Front Work Department of CPC Central Committee, and Zou Yong, Counsel of the Department of Regional Economy, the National Development and Reform Commission.