CE: 'Dual circulation' to inject continuous impetus to HK's economy

Hong Kong Chief Executive Carrie Lam delivers her fourth Policy Address at the Legislative Council today (Nov. 25). Lam indicates that economic development is the basis for a stable life for people. Over the past year, HK's economy has been severely hit by social unrest, pandemic, and international political situations. The labor market is also under immense pressure. Hong Kong Special Administrative Region (HKSAR) Government forecasts the local economy to contract by 6.1% in 2020.

Lam says that HKSAR Government has emphasized the unique advantages of "one country, two systems," integrating proactively into national development, striving to resolve the two major bottlenecks of land and talents, and investing substantially in innovation and Technology (I&T) industries. At the same time, it will continue to connect with the world to explore business opportunities. While promoting free trade and maintaining HK's market economy, the HKSAR Government is committed to playing the role of a "facilitator" and "promoter" and will join hands with enterprises to explore more market opportunities and assist professional service providers in going beyond HK. The specific points in the Policy Address are as follows：

Consolidating HK's status as an international financial center

HK is a highly rule of law, market-oriented, and internationalized economy, and the opportunities for development in the new national landscape are obvious. Given the advantages under "one country, two systems," HK can further strengthen its "intermediary" role in international circulation. Besides, HK can focus on the business opportunities in the Mainland market, better integrate into the overall development of China, take the Greater Bay Area (GBA) development as an entry point, and proactively become a "participant" in domestic circulation and a "facilitator" in international circulation. Playing the dual role well will bring continuous impetus to HK's economy.

Deepening mutual access between mainland China and HK financial markets

This year marks the 40th anniversary of the establishment of the Shenzhen Special Economic Zone. HK and Shenzhen, two neighboring cities, share a unique relationship that is as good as ever after so many years. The Central Government strongly supports the co-operation between HK and Shenzhen in developing an international I&T hub in the GBA, and has agreed to their joint development of the Shenzhen and HK Innovation and Technology Co-operation Zone (SITZ), to establish "one zone, two parks" at "one river, two banks" under the auspices of "one country, two systems."

Developing HK into an international innovation and technology hub

HK has universities with strong R&D capabilities, a pool of local and foreign talents, a vibrant R&D atmosphere, as well as a thriving start-up ecosystem. Talent is the key to the success of I&T development.

Over the past few years, HKSAR Government substantially increased funding for local postgraduate students and nurturing technology talents. HK tries to seize the opportunity to attract more I&T talents. Besides, many large-scale technology enterprises in Shenzhen require a vast pool of talents in transferring R&D outcomes into the application. Some enterprises have taken the initiative to contact HKSAR Government and expressed their wish to provide employment opportunities in the GBA for HK's young people.

Market Development and Economic Recovery

HKSAR Government supports entrepreneurs to explore more market opportunities beyond HK. The Central Government's 14th Five-Year Plan (2021-2025) points out central officials' vision for HK. HKSAR has a lot to benefit from the "dual circulation" model. The Central Government understands HK's difficulties and has agreed to assist HK enterprises in tapping into the mainland domestic market. For example, the Hong Kong Trade Development Council (HKTDC) will launch a one-stop "GoGBA" platform in collaboration with the Guangdong Province and related chambers of commerce to provide multi-faceted support for HK enterprises.