But,withgreatsupportfromChina’scentralgovernmentandpeopleinthemainland,theSARgovernmentandsevenmillionHongKongresidentshavedevelopedanewmodelforcontinuousprogressandlong-termprosperityandstabilitybytakingtheadvantageofthe“onecountry,twosystems”modelwhilecarryingforwardthespiritofstrivingforsuccess,standingtogetherthroughadversity,andinnovatingandadaptingtochangesinaflexibleway.
Makingthebestuseoftheregion’suniqueadvantagesisthekeytothesuccessofHongKong’snewmodelforeconomicprogress.
UniqueAdvantages
Makingthebestuseoftheregion’suniqueadvantagesisthekeytothesuccessofHongKong’snewmodelforeconomicprogress.
Inhispolicyaddressin2005,thefirstchiefexecutiveofHongKongSAR,TungChee-hwa,pointedoutthatunderthe“onecountry,twosystems”model,HongKongcontinuedtobeahighlyliberalanddiversesocietythatobservestheruleoflaw.
Meanwhile,theregionboastsamaturemarketeconomy,world-classinfrastructure,acleangovernment,ahighlyprofessionalanddedicatedcivilservice,asimpletaxsystemandlowtaxrate,goodsocialandpublicorder,andproximitytoavastandrapidlyexpandingmarketonChina’smainland.taxsystemandlowtaxrate,goodsocialandpublicorder,andproximitytoavastandrapidlyexpandingmarketonChina’smainland.TheChinesePeople’sLiberationArmyHongKonggarrisonopensitsbasestothepubliconJune29,2014.HongKongistheonlycityinAsiaendowedwithalltheseadvantages,whichovertimehavegivenlocalindustriesacompetitiveedge,Tungsaid.HisopinionissharedbyLeungChun-ying,thefourthchiefexecutive,whohasdemonstratedthatunderthe“onecountry,twosystems”policy,HongKonghasbenefitedfromthestrengthof“onecountry”andtheflexibilityof“twosystems.”
RapidgrowthintheChinesemainlandandthefavorableinitiativesofferedbythecentralauthorityenablestheHongKongSARgovernmentandthelocalcommunitytomakegooduseoftheuniquedualadvantagesofthepolicy,leveragelocaleconomicdevelopmenttoimprovepeople’slivelihoods,andcontributetothecountry’sdevelopment.
LeungalsoobservedthatChinaisplayinganincreasinglyprominentandleadingroleintheglobaleconomy.Againstthisbackground,HongKong’sdualadvantagesof“onecountry”and“twosystems”anditsroleas“super-connector”aremoreapparent.Theregionenjoysboundlessopportunitiesasitexcelsinofferingwhatthecountryneeds,hesaid.
TheSARgovernmenthaslaunchedtwostrategies–developmentofinnovativetechnologyandreindustrialization–toliftthelocaleconomyoutofthefinancialdownturn.Thesetwostrategiesandtheirinitialsuccesshavebecomekeyfacetsandnewgrowthpointsforregionaleconomictransformation.
FirmSupport
Sinceitsestablishment,theHongKongSARhaswithstoodthreesevereshockstoitseconomy:the1997Asianfinancialcrisis,theoutbreakofSARSin2003,andthe2008financialcrisis.
FacedwiththeAsianfinancialcrisis,thecentralgovernmentandpeopleonthemainlandextendedanimmediatehelpinghandtoHongKongandmadeeveryefforttomaintaintheregion’slong-termprosperityandstability.
TheSARgovernmentreceivedstrongsupportinprotectingitslinkedexchangeratesystem,andtheRMBdidnotdepreciate.ThissupportfromthecentralgovernmentenabledtheSARgovernment’sswiftmeasurestoensurethestabilityofitssocietyandfinancialsystem.
In2003,theSARSepidemichitHongKong.Itposedaseriousthreattothelivesandhealthoflocalresidents,anddealtafurtherblowtotheregion’seconomywhichhadnotyetrecoveredfromtheAsianfinancialcrisis.Thisledtoastockmarketslump,deflationandat8.7percenthighunemployment.
AlthoughthemainlandalsoneededmedicalsuppliesinthefightagainstSARS,thecentralgovernmentprovidedalargequantitytoHongKongfreeofcharge.OnJune29ofthatyear,theMainlandandHongKongCloserEconomicPartnershipArrangement(CEPA)wassigned.Theagreementoutlinesthestepsthatthetwosidesshouldtakewithregardtotradeingoodsandservicesandinvestment,andthegoalstobeachieved.
TheHongKong-Zhuhai-MacaoBridgeshortensthethree-hourdrivefromZhuhaiandMacaotoHongKongtolessthanhalfanhour.ThecentralgovernmentfirmlysupportsHongKong’seffortstocementandadvanceitscuttingedgeandcompetitivenessasaninternationalcenteroffinance,tradeandshipping.
Later,theIndividualVisitSchemewaslaunched,allowingmainlandresidentstovisitHongKongindividuallyinsteadofhavingtotravelunderbusinessvisasorbyjoininggrouptours.ThesemeasureshelpedHongKongovercometheSARSepidemicandboosteditseconomicgrowth.
Whentheinternationalfinancialcrisisbrokeoutin2008,thecentralgovernmentintroduced14policiescoveringsevensectorstoensureeconomicandfinancialstabilityinHongKong.Later,duringtheirvisitstotheregion,China’sstateleadersannouncedmorepoliciestosupportHongKong’seconomicdevelopment,improvelocalpeople’slivelihoodsandstrengthentheregion’sexchangesandcooperationwiththemainland.Allthesepoliciesplayedapositiveroleinboostingconfidence,enhancingHongKong’sabilitytodefuserisks,andstimulatingitseconomicrecovery.
Inaddition,thecentralgovernmentfirmlysupportsHongKong’seffortstocementandadvanceitscuttingedgeandcompetitivenessasaninternationalcenteroffinance,tradeandshipping.ThecentralgovernmentalsofacilitatesHongKong’sissuingofRMBbondsandtrialRMBsettlementsincross-bordertrade,thusconsolidatingHongKong’spositionasaleadingoffshoreRMBmarket.Furthermore,ithascontinuedtoencouragethelistingofmainlandenterprisesonthestockmarketinHongKong,andintroducedagreatnumberofmeasurestostimulatetheregionalfinancialsector.
Ontopofthat,thetourismandretailsectorsinHongKongandHongKong-investedcompaniesonthemainlandhavegrownremarkably.AttherequestoftheSARgovernment,thecentralgovernmenthasgraduallyexpandedtheIndividualVisitSchemeto49pilotcitiesonthemainlandwithatotalpopulationofover300million.BytheendofSeptember2016,mainlandresidentshadmade206milliontripstoHongKongundertheIndividualVisitScheme,accountingfor55.2percentofthetotalnumberofmainlandervisitstotheregion.
Overthelasttwodecades,sinceitsreturntoChina,HongKonghasalwaysbeenoneofthemostimportanttradingpartnersofthemainland,whichhasinturnbeenthelargesttradingpartnerofHongKong.
EconomiccooperationhasbeencarriedoutbetweenHongKongandvariousmainlandcitiesandregions,includingnearbyShenzheninGuangdongProvince,andotherpartsofthePan-PearlRiverDeltaregioninawiderangeofareassuchascustomsclearance,airtraffic,large-scaleinfrastructureconstructionandenvironmentalmanagement.
WiththeCEPAnowinforce,themainlandleviesalowerorevenzerotariffonallproductsofHongKongorigin.Today,barriersbetweenHongKongandthemainlandinlogistics,investment,andflowofinformationandhumanresourcesarebeingremovedasabroaderrangeofcooperationispromoted,benefitingbothsideswithwin-winoutcomes.
However,HongKong’seconomicrecoveryhasbeenchallengedbythegenerallyunfavorableenvironmentintheregionandabroad.WhenevertheSARgovernmentasksforhelp,thecentralgovernment–whole-heartedlybackingHongKong’sbidtomaintainitslong-termprosperityandstability–guaranteesanunlimitedsupplyofbasicnecessitiesandrawmaterials.
Becauseoftherestrictionsofitsnaturalenvironment,HongKongreliesonthemainlandforthesupplyoffreshwater,vegetables,meatandotheressentials.Sincetheearly1960s,whenthemainlandran“threeexpresstrains”tosupplytheregionwithfreshandfrozengoodsandcarriedouttheDongjiang-Shenzhenwatersupplyproject,thecentralgovernmentandrelevantlocalauthoritiesonthemainlandhavemadegreateffortstoensurethesupplyoffreshwater,foodstuffs,agriculturalproducts,electricity,naturalgasandsoon.
Inthelast20years,themainlandhasbeenplayingakeyroleinsupportingandensuringHongKong’seconomicdevelopmentandsocialprosperityandstability.Havingbeenbroughtintoaninstitutionalizedandnormalizedorbit,the“mainlandfactor”hasbeenthebuttressforthe“onecountry,twosystems”model.
ChinesePresidentXiJinpinghasobservedthatsinceitsreturntoChina,HongKong’sfuturehasbeeninthehandsofitspeopleandislinkedmorecloselywiththemainland.ItisbelievedthatwiththefirmsupportofthemotherlandandjointeffortsoftheSARgovernmentandlocalpeoplefromallwalksoflife,HongKongcanovercomeanyrisks,difficultiesandchall-enges.TomorrowwillbebetterforHongKong,anditsresidentswillenjoyabetterlife.ThePearloftheEastwillshineevenmorebrilliantly.
WorldwideAcknowledgement
Buildinga“newHongKong,”followingtheprincipleof“onecountry,twosystems”hasmaderemarkableachievements.Inthelast20years,thelocaleconomyhasmaintainedsoundandstabledevelopmentwithoverallgrowthandalowerrateofunemployment.
Meanwhile,itskeystatusininternationalfinance,trade,andshippinghasbeenfurtherelevated.Maintainingitsstatusasaninternationalcenterofbanking,aninternationalsecuritiesmarketandaninternationalforeignexchangemarket,HongKonghasalwaysbeenamongthefront-runnersintermsofinternationalbankingandfinance.
Moreover,thisninth-biggesteconomyoftheworldhasregulartradingtieswithalmosteverycountryandisamajorregionworldwide.HongKongboastsoneoftheworld’slargestcontainershippingportsandisamajorshipregister.HongKongInternationalAirportistheworld’sfifth-busiestinternationalpassengerairportandthemostactiveaircargoterminalworldwide.
Besides,industriesthathavelongbeencompetitiveandrobustarecontinuouslyenhancedinHongKong.Tradeandlogistics,tourism,finance,andprofessionalservicesandsupportservicesforindustryandcommercecontinuetoplayanimportantroleasHongKong’spillarindustries.What’smore,HongKongfocusesonthedevelopmentofculture,innovation,scienceandtechnology,testingandcertification,aswellasenvironmentalprotectionindustries.
Theregionhasalsomaintainedasoundbusinessenvironment.Formanyyears,ithasfeaturedprominentlyinWorldBankrankingsofthebusinessenvironmentsof185economies.InitsWorldInvestmentReport2013,theUnitedNationsConferenceonTradeandDevelopmentrankedHongKongasthirdintheworldintermsofattractingforeigndirectinvestment.
Theregionhasalsobeenlistedamongtheworld’smostcompetitiveeconomiesforyearsinsuccessionbytheWorldCompetitivenessYearbookreleasedbytheInternationalInstituteforManagementDevelopmentinSwitzerland.Ithasbeenrankedastheworld’sfreesteconomybytheWashington-basedHeritageFounda-tionfor23successiveyears.
Meanwhile,accordingtotheCatoInstitute’sHumanFreedomIndex2016,HongKongtoppedthelistof159countriesandregionsforthesixthyearinarow.Theindexwascompiledusing79distinctcriteriasuchasruleoflawandcivilandeconomicfreedom.
Theoutstandingeconomicperformanceofthe“newHongKong”hasbeenwidelyacknowledgedbytheinternationalcommunity,includingthosewhodidnotrelishtheprospectofHongKong’sreturntothemotherland.
Inthe1990s,Fortunemagazinepredictedadeclineoftheregioninitsarticle,“TheDeathofHongKong.”Nevertheless,10yearsafterHongKong’sreturntoChina,itadmittedinanewarticle,“Oops!HongKongIsHardlyDead,”soacknowledgingthatithadmadeamistake.
Ontopofthat,thelastgovernorofHongKong,ChrisPatten,hassaidthatthe“onecountry,twosystems”modelisworkingquitewellinHongKong.TheU.K.Foreign&CommonwealthOfficehassaidthattheBritishsidebelievesthatthe“onecountry,twosystems”policyisthebestforHongKong’slong-termstabilityandprosperity.ItalsoexpressedhopethatthemodelwouldalwaysberespectedandleadHongKongtogreatersuccessinthefuture.
Aregionwithahighdegreeofopennessanda“superconnector”betweenChina’smainlandandtheworld,HongKongplaysasignificantroleinthecountry’sopening-upstrategiesof“bringingin”and“goingout,”accordingtoLeungChun-ying.Moreover,theregionisreadytomakefulluseofitsadvantagestocontributetotheBeltandRoadInitiative.Withthesuccessfulimplementationofthe“onecountry,twosystems”policy,HongKongisembracingapromisingfuture.
QIPENGFEI,PhDinlaw,isdirectoroftheTaiwan,HongKongandMacaoResearchCenterofRenminUniversityofChinaandvicechairmanoftheChineseAssociationofHongKongandMacaoStudies.
LanKwaiFongBeer&MusicFestivalisayearlyhighlightofHongKong.