Last week, Beijing signed a memorandum with the Hong Kong government regarding the mutual recognition of academic qualifications. At present, it will streamline the applications of only a few students seeking postgraduate studies across the border, but the new platform has generally been welcomed here.
Few have noticed that the event marks a positive step in relations. Any new arrangements will not take the form of an executive order or law, but will take place through mutual consent. As far as I am aware, this is the first agreement of its kind with the central government. The Closer Economic Partnership Arrangement is regarded as an agreement between World Trade Organisation members.
A few months ago, the democrats complained that the special administrative region's high degree of autonomy was being eroded. This new development can only be a sign that it is still sacrosanct. Because it affects so few people - and in a positive way - surely even the democrats would not raise any objections, even if the arrangement was made through an announcement from Beijing. With more than 30 provinces and municipalities, I cannot imagine the central government signing agreements with every one on various issues. This makes Hong Kong and Macau very special.
On the other hand, citing Guangdong as a precedent, Hong Kong could enter agreements with other provinces and municipalities, creating a new mode of co-operation. In fact, this is beginning to happen. The pan-Pearl River Delta co-operation scheme is a prime example. If this is a success, it will create new relations among all administrative units in China, and they will form alliances without instructions from above.
In Chinese history, this only happened when the central government was weak and the country was in chaos. Warlords would enter alliances to carve up the country. So, when the provinces were strong, an alliance like this would spell danger, and the central government would inevitably try to crush it. But today, the pan-Pearl River Delta scheme has been incorporated into the next national five-year plan.
Until now, provinces and municipalities have competed for more resources and favourable policies from the central government.
