Hong Kong should stick to China’s economic blueprint amid uncertainty over US ties, finance chief says
- Quoting analysts, Paul Chan says US policy on China likely to remain the same, no matter who becomes the next American president
- Hong Kong will benefit the most by seizing opportunities in mainland’s ‘internal circulation’ economic strategy and the Greater Bay Area, he adds
If [Hong Kong economy] faces obstacles [in its exchange] with Europe and the US, then it’s very natural that we have to stay closer to the economic development on the mainland
With the US presidential election looming on Tuesday, Chan told a Saturday radio programme it was uncertain if the election results would change the country’s diplomatic and economic policies.
“But there is one point that seems to be quite clear. When we talk to various business friends and think tanks, they all share with us that they feel no matter who is elected as the next US president, the general direction on China policy will not change,” he said.
Do China’s new plans for Shenzhen mean a Greater Bay Area back seat for Hong Kong?
“That means the complex and unfavourable environment will continue … If [the Hong Kong economy] faces obstacles [in its exchange] with Europe and the US, then it’s very natural that we have to stay closer to the economic development on the mainland.”
In May, as the country’s bilateral ties with the US deteriorated, Xi introduced a new economic strategy that relied more on domestic sectors. The strategy focuses on internal circulation – a domestic production and consumption cycle supported by innovation. Trade with other countries and regions, or external circulation, meanwhile, is regarded as secondary for economic growth.
Chan said believed the strategy would focus on innovation, self-strengthening and technological autonomy.
He noted the city had strengths in such areas as medicine and artificial intelligence, and could cooperate with other cities such as Shenzhen and Dongguan on these, adding that Hong Kong’s high-end service industry was also good.
“The Greater Bay Area is an entry point for us to hook onto the mainland’s internal circulation,” he said, referring to Beijing’s blueprint to link Hong Kong, Macau and nine Guangdong province cities into an integrated economic and business hub.
Hong Kong tourism industry waits, but will mainland visitors return?
The important thing in the near-term was to strive to ease border restrictions as soon as possible, he added.
Chan said Hong Kong authorities were working with their Shenzhen counterparts to build an innovation and technology park in Lok Ma Chau Loop, while hoping that the land for building facilities there would be ready as early as 2022.
“Hong Kong’s economy is consolidating itself at a low ebb,” Chan said.
But he said the city’s recovery would depend on its pandemic situation, while improvements in consumption activities and the mainland’s economic situation were other key factors.
