Decoding Two Sessions: What it means for HK's future development

Deepline

2025.03.11 15:50

By Patrick Ho

As a political barometer and economic indicator, the annual Two Sessions vividly demonstrate China's democratic political system. This year is particularly significant, marking the final year of the 14th Five-Year Plan and the strategic planning phase of the 15th Five-Year Plan. Positioned at this crucial juncture, the 2025 Two Sessions carry a unique historical mission, drawing domestic and international attention. In this transition period, Hong Kong must break through traditional constraints, fully implement the new phase of the "One Country, Two Systems" policy, and embrace bold reforms and innovation to contribute to the nation's needs with its own strengths.

Hong Kong's deputies to the National People's Congress (NPC) and members of the Chinese People's Political Consultative Conference (CPPCC) not only bear the trust of the central government but also carry the expectations of Hong Kong society. The Two Sessions are closely tied to the well-being of Hong Kong citizens, making it essential for Hong Kong society to pay close attention. But how should we interpret and analyze the discussions at the Two Sessions? Here are two key perspectives:

1. Understanding the Spirit of the Two Sessions: Defining Hong Kong's Development Path and Role

From President Xi Jinping's recent remarks on Hong Kong and Macao, Premier Li Qiang's Government Work Report, and Vice Premier Ding Xuexiang's speech at the joint meeting with Hong Kong and Macao CPPCC members, we can grasp the core messages of the Two Sessions. These discussions highlight China's expectations for Hong Kong amid a rapidly changing global landscape and the country's national rejuvenation goals.

Firmly Safeguarding National Security

First, the new phase of "One Country, Two Systems". In December 2024, President Xi Jinping emphasized that the practice of "One Country, Two Systems" has entered a new stage, stressing that Hong Kong and Macao must play a greater role in national development and contribute to China's modernization and rejuvenation.

Second, the central government strongly supports the integration of the Greater Bay Area, promotes international cooperation, and encourages Hong Kong and Macao to integrate better into the national development strategy. In his Government Work Report, Premier Li Qiang reaffirmed his unwavering commitment to "One Country, Two Systems," "Hong Kong administered by Hong Kong people," and "Macao administering by Macao people" with a high degree of autonomy. He also emphasized maintaining constitutional order, implementing "patriots governing Hong Kong," supporting Hong Kong and Macao in economic development, improving livelihoods, and deepening international cooperation.

Additionally, safeguarding high-level security and promoting high-quality development go hand in hand. Hong Kong must understand its new mission in this phase—grasping the strategic opportunities of integrating into national development while ensuring national security. Without high-level security, high-quality development is impossible. Particularly in matters of national security, there can be no ambiguity.

2. Leveraging the Government Work Report to Identify Hong Kong's Economic Transformation Opportunities

The Government Work Report set a GDP growth target of around 5% for this year. Amid global economic slowdown and geopolitical tensions, this growth target serves as a baseline for job security and social stability and a launchpad for economic transformation and upgrading.

Driving National High-Level Economic Openness

Looking ahead, China will develop new productive forces tailored to regional needs, fostering emerging industries such as commercial spaceflight, low-altitude economy, biotechnology, quantum technology, and AI-driven smart manufacturing. The digital transformation of manufacturing will accelerate, with a growing emphasis on smart vehicles, AI-powered phones, intelligent robotics, and next-generation smart devices.

The Government Work Report also highlighted expanding high-level global openness, strengthening foreign trade policies, supporting cross-border e-commerce, and enhancing international investment policies to attract foreign capital. The government plans to open up key sectors, such as telecommunications, healthcare, and education while deepening economic cooperation with global markets.

Hong Kong must carefully study the Government Work Report, seize the latest national policies, and leverage its unique role as a gateway between China and the world. By safeguarding national security and utilizing the advantages of the two systems, Hong Kong can play a critical role in China's modernization process—strengthening its position as a hub for political, economic, and financial interactions.

In 2018, Shenzhen's GDP surpassed Hong Kong's for the first time, exceeding Hong Kong's by 22.1 billion RMB. By 2024, the gap has widened to 756.4 billion RMB, with Hong Kong's GDP now only 81% of Shenzhen's. Shenzhen's Lok Ma Chau Loop area has rapidly developed into a hub for technology, AI, and innovation-driven enterprises, attracting globally renowned companies. As the Greater Bay Area continues to develop, Hong Kong must actively integrate into national strategies, rethink its development positioning, and explore deeper regional cooperation.

Reforming and Innovating with Determination

With China's economic transformation, expanded foreign investment, and rising innovation industries, new opportunities are emerging in finance, eldercare, healthcare, and technology sectors. With its strong foundation in scientific research, international finance, logistics, and legal services, Hong Kong must collaborate closely with mainland Greater Bay Area cities to achieve world-class standards in R&D, industrial production, and supply chain integration.

(Source: Wen Wei Po)