The executive and legislative branches of the Hong Kong Special Administrative Region government made a joint study tour to Shenzhen, Dongguan, Foshan and Guangzhou in April. This was an excellent opportunity for administrators and lawmakers to see with their own eyes the country’s technological advancements. As the trip was widely covered in the media, it is not necessary for me to recap it. I would like to say something about Hong Kong’s role as an innovation and technology hub, a topic which I hold close to my heart.
In 2015 the central government set out its vision in “China Manufacturing 2025 Strategy” — a comprehensive plan to drive the country’s transformation from a manufacturing powerhouse to a hub of innovation and new technologies. Since then, the country has stepped up research and development (R&D). Consequently, we have celebrated many technological breakthroughs and whose integration in the manufacturing process has greatly improved efficiency, effectiveness and productivity.
It’s no exaggeration to say China has become a tech giant, as evidenced by these achievements: ZTE Corp has gained global recognition; Huawei is the leading player in 5G infrastructure; Chinese players dominate the renewable energy market and lead in electric vehicle manufacturing; the China-made C919 jet has commenced commercial flights; and the Tiangong space station is now permanently manned. These advances mean China has become self-sufficient in critical tech fields, and tech giants such as Huawei, ZTE and TikTok are so successful that they have been envied and bullied by foreign governments.
Rebuilding the country from the ruins of war took the dedication and sacrifices of a few generations. While we take pride in the achievements the country has made in the past few decades since the start of reform and opening-up, we should not settle for where we are.
Industrial revolution has brought about efficiency as well as standardization in the supply chain, which in turn has contributed to globalization. As globalization has made the planet a global village, a country’s power to set standards is nowadays crucial to national prosperity and security.
The city is designated to become an innovation and technology hub in the 14th Five-Year Plan (2021-25). To achieve this goal, we need to do more than chant slogans or simply dish money out without a clear vision, or an aim. We must recognize and capitalize on our comparative advantages to contribute to setting and promoting Chinese Standards
How so? As early as 2020, Huawei was already the biggest contributor to 5G standards. Further development of the country’s 5G technology will mean a Chinese leadership in this area. Another example is China’s high-speed rail technology, which is a much coveted item for countries along the Belt and Road. What could have happened had China tapped into the Southeast Asian markets earlier than its competitors? Again, market leadership.
Like it or not, China’s competition with the West in innovation and technology has lasted for years and will continue in the years or even decades ahead. All sorts of containment strategies are likely to be deployed against the country. After all, curbing China’s rise is a bipartisan consensus in Washington, notwithstanding their crippling bipartisan politics. A natural question that begs to be asked is: How should we position ourselves?
First of all, we should go all-out to advance the Belt and Road strategy, with promoting Chinese Standards as one of its objectives. The country has successfully set and promoted Chinese Standards in areas such as high-speed rail, renewable energy, electric vehicles and 5G networks. When Chinese Standards are as widely recognized as British Standards, American National Standards and European Standards, it will attest to its soft power.
In this regard, Hong Kong has a role to play. The city is designated to become an innovation and technology hub in the 14th Five-Year Plan (2021-25). To achieve this goal, we need to do more than chant slogans or simply dish money out without a clear vision, or an aim. We must recognize and capitalize on our comparative advantages to contribute to setting and promoting Chinese Standards.
Hong Kong has comparative advantages in application, branding and marketing of technological advancements. By “application”, I mean we can provide newly developed technologies with a platform to test out their full capacity, capability and marketability before a fully fledged market launch. Needless to say, our talents in branding and marketing are world-class, with ample experience in and exposure to the international market.
Hong Kong is the only place in China where common law is practiced. This is another significant advantage enabling Hong Kong to contribute to setting Chinese Standards. This advantage is particularly prominent, given the city’s watertight intellectual property (IP) rights protection and enforcement regime, which helps nurture innovation and creativity by ensuring the rightful rewards for innovators and inventors.
And let’s not forget our well-regulated financial market, which provides innovators with a platform to raise fund for their operations. Our equity market is in the same league as New York’s and London’s; and venture capitalists proactively seek investment opportunities here. But further measures should be adopted to boost our underdeveloped bond market, which is unpopular among tech firms because of its low transaction volume. A matured bond market will prove a boon to Hong Kong’s development as an innovation and technology hub.
Hong Kong’s bureaucracy used to subscribe to neo-liberalism and treated any form of government involvement and intervention in the private sector as taboo. The laissez-faire approach, however, has shown us many inadequacies, particularly in advancing technology development. Recently, the SAR administration has proposed to allocate HK$10 billion ($1.28 billion) for enhancing the city’s innovation and technology ecosystem. This is merely a baby step; more should be done. The government can take a more proactive role in the key sectors. Lest we forget, it was not by chance that Japan and South Korea became innovation and technology giants in the 1980s. It took government vision and direction in building up those industries. Most importantly, our bureaucrats should guard against our inventions being targeted by sanctions or other economic coercions.
The author is a Legislative Council member.
The views do not necessarily reflect those of China Daily.