The 20^th anniversary of China’s entry to the World Trade Organization offers an opportunity to reflect on the extraordinary growth of the Chinese economy since then – and the benefits that have flowed to Hong Kong. 

Hong Kong has long been the bridge between the Mainland and the rest of the world, and China’s WTO entry greatly accelerated the nation’s development. This in turn enabled Hong Kong businesses to use their expertise and unique East-meets-West advantages – in particular our financial and professional services skills. 

And as we look to the next 20 years, it is clear that the development of the Greater Bay Area (GBA) will be the principal driver of Hong Kong’s growth. As the project matures and the barriers come down within the GBA, the natural synergies will turbo-charge what is already one of the fastest-growing economic clusters in the world. 

We know from our Chamber surveys over the past few years that local businesses are tremendously positive about the GBA initiative, and are keen to access the opportunities in this huge and dynamic market. But the Covid-19 pandemic may have put the brakes on many companies’ GBA plans.

The Chief Executive told members at our recent Joint Business Community Luncheon that the reopening of the border with the Mainland will be gradual. It is expected that, initially, a limited daily quota will be able to travel without the need for quarantine at either end. We hope that the initial crossings will progress smoothly, enabling a further relaxation of restrictions to allow Hong Kong businesspeople to get back to doing business in the GBA in person. Key to a full economic recovery, of course, will be the reopening of our borders.

So, as we move into 2022, Hong Kong businesses have good reason to be cautiously optimistic. While some sectors, like tourism, remain badly affected, others are starting to see the benefits of the lack of active local Covid cases in Hong Kong and relatively few restrictions on day-to-day life.

After a very tough couple of years, the economic outlook is now becoming brighter. In a recent Chamber survey, 79% of respondents said that their business turnover had increased or remained the same in the first half of 2021, compared to last year.

In other good news, the employment situation continues to improve, with the August-October unemployment rate dropping to 4.3%. Hong Kong retail sales enjoyed a rise of 7.3% year-on-year in September, buoyed by the Government’s e-voucher scheme. 

Joining the WTO was a huge step in China’s opening up and helped facilitate its extraordinary development. The GBA initiative represents another major milestone in the nation’s economic progression. Here in Hong Kong, businesses look forward to the reopening of the borders so that we can really grasp the fantastic opportunities in the GBA and beyond.

Peter Wong
[email protected]