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Hong Kong falls off the competitive edge in overall China rankings

City loses second place in overall China rankings and nosedives off top spot when it comes to rating effective government

PUBLISHED : Wednesday, 19 June, 2013, 12:00am
UPDATED : Wednesday, 19 June, 2013, 4:16pm

Hong Kong has plunged from China's second most competitive region to its fifth, according to a think tank that blames it on slower economic growth and weaker governance.

As part of the calculations for the China Institute of City Competitiveness survey, Hong Kong also lost the No 1 spot for most effective government and dropped out of the top 10 altogether.

The annual ranking exercise saw Hong Kong overtaken by Jiangsu , Shandong and Zhejiang provinces in terms of overall competitiveness over the past year.

The previous year saw it second only to Guangdong province. Shanghai's ranking was unchanged in seventh place.

"Hong Kong's overall competitiveness has been on a track of decline, but it dropped more significantly over the past year," said Gui Qiangfang, vice-chairman of the institute.

"Economic growth also slowed to 1.4 per cent last year, down from 4.9 per cent in 2011," he said. "The strength in innovations has further declined over the past year. The effectiveness of governance also dropped amid political rivalries."

Shanghai is now closer to Hong Kong in terms of competitiveness, but both are losing out in terms of speed of growth. Gui said: "Chongqing , Tianjin and Shenzhen are doing very well. Shenzhen has seen major developments in the property market and culture industries."

The survey has now been running for 12 years. It takes into consideration ratings for areas such as growth potential, livability, innovation, environment, economic development, social development and culture.

For another year Hong Kong was left out of the top 10 list of most innovative cities. In terms of potential for growth, Hong Kong's ranking dropped from 13 to 17. Shanghai stayed at 14, while Tianjin topped the chart.

To increase competitiveness, the Hong Kong government should rethink its policies over pillar industries, Gui suggested. It should also put more effort into high-tech industries and innovation, he added.

Former chief executive Donald Tsang Yam-kuen had listed cultural and creative industries; medical services; education services; innovation and technology; testing and certification services; and environmental industries as the six "new pillar industries" to be nurtured in Hong Kong.

His successor Leung Chun-ying has removed medical and education services from the list.

 

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This article is now closed to comments

THC
Looking at the comments one can see the anger, jealousy and shock of the HK people. Life in HK is cushy compared to China where competition for jobs and business is very fierce and competitive.
Competition is healthy and breeds entrepreneurs. These home grown entrepreneurs are now invading the global markets. Comparing them to HKers it is a world of difference. What is keeping the mainlanders so competitive is a lot of them comes from middle to poor backgrounds. They do not have support from well to do parents. On the contrary many have to support their parents and siblings back home not to count their own family.
ssslmcs01
I question the motives of publishing such a report. The results of this survey are obviously grossly skewed in an effort to scare Hong Kong people into submission to Beijing. Our system is beyond comparability of their system, their method of conducting a survey are very tilted or even fabricated.
babyhenry
Yeap cheap China is gonna pop like an air balloon, and Hong Kong will sink with it, since this so called "international' city is only nothing more than a Mainland corrupt money laundering hub.
Yea this great city is only survivng on dirty money laundering, not tech, not culture, not anything as a matter of fact, just dirty money laundering services from Finance to over priced junk (which is imported hahahahaha.) & our own world class property bubble. For all I know Hong kong can't even make Sh-t if it wants to since the rent is soooo high.
Atleast the crappy sh-t the Mainland makes are being exported and sold to.
Foreign money comes to HK to invest in China, not in HK, China money comes to HK not for HK but for overseas. LMAO how sad for HK & the clowns that continue to prefer to live with their head up their ****s.
Dam I couldn't even think about any other industry or competitive advantage HK have besides from Money laundering and a trust worthy judical system which ironically protects the interest of those dirty money.
Whether you like it or not, HK is nothing without the Chinese market, unlike Singapore, which have India, Indonesia & other SEA countries to attract capital from. Not to mention Singapore have a great tech indsutry espicially the field of Water. HK have what? ooo right Milk powder & very expensive property.
BTW those mainlanders coming to HK, is just trying to use HK to go to somewhere else.
SpeakFreely
Hk had been over rated. Period. We have no new industry n no innovation. No home grown IPO of sizeable in the past 10 to 20 years. No VC are investing in HK or virtually no. We are polluted. We are expensive. We are ineffcient. Our GDP growth is worst than USa but our inflation is much higer....the list just goes on....
layleng
Bigger is not always better. The fact is that these animals from the mainland still want to come to Hong Kong to buy property, to buy milk powder, to buy rice, to buy gold and jewellery, to eat safe food, to enjoy CNN uncensored, to give birth, to educate their kids, to live some semblance of civilised life. I'd say that makes us plenty competitive.
chaz_hen
Transparency(generally), accountability (sometimes), freedom of assembly, freedom to access information without a VPN, freedom to read differing viewpoints and then come to your own logical conclusion... these are but a few things HK has, light years over the mainland.
Please don't even start with competitiveness when the mainland cities have NONE of the above, the government owns the judicial system, police are no more than hired goons, and the STATE owned companies will ALWAYS win.
wwong888
if you account for the environmental costs in china, their gdp growth is negative... we can manufacture growth too by building useless sh-t like china, but we are smarter than that... china is doomed... gonna pop like a hot air balloon
Giwaffe
As an first rate international metropolis, it seems more appropriate to compare Hong Kong with its international equals. Although the ranking exercise by this Chinese think tank is presented as an apples to apples comparison, in reality it is clearly an apples to oranges comparison.
ssslmcs01
Sounds like you don't like it here. But I'm sure most of the population and thousands of others including the Chinese do like it here. That's why they keep coming here to buy their baby formula and other food items in addition to trying to come here to deliver their babies.
 
 
 
 
 

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