With each new five-year plan, Hong Kong figures more in the policy planning of the central government. The latest plan, which ranges from 2021 to 2025, is offering the greatest opportunities yet for Hong Kong’s economic growth and further integration with the rest of the country. It is an opportunity that must not be missed, and Beijing has gone out of its way to spell it out for the city’s officials.
That was why, in his recent briefings for local people on the latest 14th Five-Year Plan, Huang Liuquan, a deputy director of the State Council’s Hong Kong and Macao Affairs Office, sincerely urged the city to be more proactive in assisting and integrating with the country’s development.
At the same time, he has reassured Hong Kong that its role in helping to open the nation’s economy to the world can never be replaced; and that investors, both foreign and domestic, can rest easy because of, not despite, the National Security Law for Hong Kong, which has worked to ensure a stable and safe environment for all.
In effect, Huang is explaining both the privileges and duties of Hong Kong in the grand scheme of things, but also specifically in relation to the latest national development plan. Hong Kong’s leaders, in both the government and private sector, will do well to take note.
Two chapters (the 61st and 31st) of the 14th Five-Year Plan relate specifically to the city. Their focus is to reinforce Hong Kong’s existing competitive advantages while exploring new opportunities for growth and expansions.
With these goals in mind, showing a masterly understanding of the city’s economy, Ning Jizhe, deputy director of the National Development and Reform Commission, singled out financial services, digital transformation, trade, innovation and technology, and green development.
With financial services, it is already ahead. The Hong Kong Stock Exchange will launch in October the first index futures for A-shares trading in the mainland market that can be traded in both the yuan and US dollar. This will no doubt prove popular for traders and stimulate the already high-volume Stock Connect platform for the buying and selling of stocks in Hong Kong, Shenzhen and Shanghai for investors on the other side of the border.
Meanwhile, Joseph Yam Chi-kwong, former chief executive of the Hong Kong Monetary Authority and one of the most respected figures in Chinese finance, made an innovative proposal during a 14th Five-Year Plan briefing. The idea is to let investors trade the constituent stocks of Hong Kong’s Hang Seng Index in yuan. This will help promote the internationalization of the national currency as well as the city’s status as the premier offshore hub for yuan trading. The city, after all, has the largest pool of yuan deposits outside the Chinese mainland.
As Ning said, Hong Kong needs to be proactive in enhancing “dual circulation” so that domestic and overseas markets will reinforce each other. What he means is that under the national plan, the “dual circulation” economic strategy will accentuate the city as a key link between the mainland and global markets.
In other areas he has singled out, though, Hong Kong has its work cut out for it. Beijing raises, for the first time, a full commitment to support Hong Kong to enhance its status as an international aviation hub, an innovation and technology hub, a regional intellectual property center, and an artistic and cultural hub. Successive local administrations have tried to develop such areas but with little to show for it over the years. But with central and regional government support, the city now has a great shot at success by integrating its economy fully with partner cities in the Guangdong-Hong Kong-Macao Greater Bay Area and participating in the Belt and Road Initiative.
Of course, this is not the first time Hong Kong has been integrated into the nation’s five-year plans. The 11th, 12th and 13th plans all mentioned the city. However, the results have been somewhat disappointing. One reason is that it takes time for local leaders in business and government to adjust to the mainland’s economic planning and to find a proper role for themselves.
The more important reason has been the irrational and highly destructive obstructionism of the local opposition, which made any long-term and large-scale projects virtually impossible to proceed in a speedy manner. Adding to that has been the direct role that the opposition figures played in the violent 2019 protests and riots.
But now that the opposition has effectively given up on its own, thanks largely to the National Security Law for Hong Kong, the SAR government can now proceed unobstructed. It will also have no more excuses not to get the necessary work done.
In that sense, the violent unrest of 2019 may have been a blessing in disguise. It has helped neuter the opposition and enabled the central government to play a more-direct role to guide the Hong Kong SAR government in its development plan for the city.
Now that Hong Kong has returned to normal and we are seeing the end of the tunnel with the COVID-19 pandemic, its best days are ahead. It’s unfortunate and a bit ironic that some Hong Kong people are joining a so-called emigration wave, not understanding the political reality nor realizing the great economic prospects of their own city. Some are simply misled by their own opposition politicians and media opportunists, as well as the corrupt influence of Western governments and news groups.
Time will tell the absurdity of their decisions to move to a Western country whose economy is stagnant or in decline, rather than staying in one of the world’s most-vibrant and largest economies.
Hong Kong must not miss this golden opportunity now being offered on a silver platter by the central government in its 14th Five-Year Plan. As Huang said, while quoting a well-known Chinese proverb, “After leaving Suzhou, one will not find another boat to ride on.”
The author is a veteran journalist focusing on Hong Kong and Chinese mainland affairs.
The views do not necessarily reflect those of China Daily.