Innovation and vision can make Hong Kong shine in the pan-Pearl River Delta

To understand the relevance for Hong Kong of the Belt and Road Initiative and the proposed Greater Bay Area, it is helpful to first look at the strategic challenges facing China, on the one hand, and Hong Kong on the other.

China faces challenges on multiple fronts, including an ageing population and shrinking workforce, slowing growth, a shift towards ­domestic consumption (including services), environmental and health concerns, internal inequality, and growing global protectionism externally.

China’s solution to these interrelated problems is in two directions: first, greater productivity, which implies increased emphasis on innovation, coupled with ­regional integration; and, second, deeper foreign engagement.