Opinion | Hong Kong and Shenzhen haven’t become the tortoise and the hare. Actually, both can win the race
- Hong Kong should strike a balance between being an integral part of China and maintaining its unique advantages as an open economy
- Instead of lamenting its stagnation, it should ride the wave of Chinese growth in the post-pandemic world
This is no mean feat for the city that once sought to emulate the success of Hong Kong and Singapore, and which is now charting its own path forward. For many in Hong Kong, the success story of Shenzhen may be a little overwhelming.
Back then, Hong Kong was superior in economic prowess, ranking among Asia’s four little dragons. It was rapidly developing into a world-famous cosmopolitan city with advantages such as a free business environment and proximity to the mainland, a key attraction for Western investors and professionals. Labour and capital from the mainland also enabled its light industry to flourish and powered its economic development.
As Shenzhen played catch-up, some viewed the relationship between the two cities as competitive, in which one would dominate the other. There were, and remain, worries that the mainland system is chipping away at Hong Kong’s core advantages. However, the success of one city need not come at the peril of another.