Chinese officials pledge support for Hong Kong’s tech, Web3 ambitions at digital economy summit
- Hong Kong should pursue advanced technologies including semiconductors and artificial intelligence, according to the deputy director of China’s internet watchdog
- The liaison office praised Hong Kong for having high-quality global talent and a ‘free, open, regulated’ business environment that benefited the digital economy
Mainland Chinese officials for the first time endorsed Hong Kong’s ambitions to become a Web3 hub, and reiterated their aspirations for the city to become an innovation and technology hub.
Hong Kong should proactively plan its development in advanced technologies including semiconductors, quantum computing, artificial intelligence (AI) and blockchain, Cao Shumin, deputy director at the Cyberspace Administration of China (CAC), Beijing’s internet watchdog, said on Thursday at the Digital Economy Summit 2023 in the city.
In a rare public comment about Hong Kong’s new push to become an international Web3 centre, Chen Dong, deputy director at the Liaison Office of the Central People’s Government in Hong Kong, praised the city government’s recent efforts to boost its digital economy, including attaching importance to blockchain applications, clarifying its licensing requirements for virtual asset platforms and establishing a Web3 institute.
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Earlier this week, the Institute of Web3.0 Hong Kong was established in the city, headed by ex-chief executive of the Hong Kong Monetary Authority Norman Chan, with founding association members including China Mobile, China Merchants Energy Shipping, Huawei Technologies, and the Hong Kong University of Science and Technology.
Hong Kong this week is also hosting the Web3 Festival, one of the largest blockchain-themed events since the city scrapped its Covid-19 restrictions.
City officials at the event reiterated their commitment to growing its Web3 sector despite recent turmoil in the industry globally, but suggested that it will place more oversight on decentralised finance (DeFi) platforms, a move that came as a surprise to some in the industry. Without any central authority, decentralised services have typically been seen as less susceptible to government oversight.
On Thursday, Cao, who joined the CAC in December 2021, also gave a series of directions for Hong Kong’s digital economy development.
She said Hong Kong should push for digital transformation in traditional industries, continue to integrate with the Greater Bay Area in technology innovations, promote the circulation and commercial use of data, and engage in wider and closer conversations with the rest of the world.
The liaison office’s Chen also praised Hong Kong for having high-quality global talent and a “free, open, regulated” business environment that benefited the city’s digital economy development.
In search of new growth engines, Hong Kong recently embarked on a drive to become a global hub for technology innovation and Web3 development. Web3 is a loosely defined term referring to a potential next-generation internet based on decentralised technologies such as blockchain. Currently, so-called Web3 applications mostly involve cryptocurrencies and non-fungible tokens (NFTs).
Hong Kong’s finance chief Paul Chan Mo-po this year earmarked more than HK$10 billion (US$1.2 billion) to drive technology development, and allocated HK$50 million towards boosting the Web3 sector.
