Premier Li Qiang’s Government Work Report arrived at a moment of global uncertainty yet undeniable opportunity — and few places stand at the crossroads of that opportunity like the Hong Kong and Macao special administrative regions. With their unique status under the “one country, two systems” principle, both SARs are poised to deepen their global presence, particularly within the expanding Guangdong-Hong Kong-Macao Greater Bay Area. While the premier’s address underscored Beijing’s continued commitment to the SARs’ high degree of autonomy, the real significance lies in how Hong Kong and Macao can evolve amid shifting economic paradigms, structural reforms on the Chinese mainland, and volatile conditions in world markets.
On the macroeconomic front, China’s performance in 2024 — gross domestic product reaching 134.9 trillion yuan ($18.6 trillion), up 5 percent — displays a resilience that defies many global trends. This standout growth echoes a broad-based strategy: fueling infrastructure, fostering advanced manufacturing, encouraging technological breakthroughs, and driving domestic demand as an engine of sustainability. High-tech industries, from artificial intelligence to new energy, have taken center stage. For Hong Kong and Macao, whose global brands rest in finance, tourism, culture, and professional services, the current nationwide emphasis on innovation offers a mutually beneficial pathway to enhance competitiveness and expand reach.
Integral to this idea is the Greater Bay Area’s growing influence. Since its launch in 2019, the 11-city cluster has aimed to merge Hong Kong’s global connections, Macao’s cultural-tourism strengths, and Shenzhen’s technological prowess. The result is a region that bets heavily on advanced manufacturing and next-generation industries, whether in semiconductors, biotech, or clean energy. More than a conglomeration of diverse markets, the region stands as a carefully coordinated initiative designed to expedite cross-border workflow, connect supply chains, and channel capital into emerging areas. This synergy increases the region’s appeal to multinational companies, many of which seek an Asian foothold that seamlessly blends global best practices with reliable infrastructure.
Notably, the region’s value proposition has garnered international interest. German high-tech firms have taken notice of Shenzhen’s electronics ecosystem and Hong Kong’s financial infrastructure, exploring joint ventures that leverage each area’s respective strengths. Likewise, Swiss banking institutions are deepening their relationships with their Hong Kong-based counterparts, particularly around sustainable investment products — a sign that capital flows can remain robust despite external uncertainties. These examples illustrate that while the concept of the Greater Bay Area is still evolving, it already holds tangible influence in global economic corridors.
Beyond commercial gains, one of the most salient aspects of Beijing’s broader outlook is its willingness to keep opening up. The removal of foreign equity caps in several manufacturing sectors in the mainland, for instance, signals a real commitment to capital inflow and cross-border collaboration. Though some might question China’s current global stance, one cannot discount how these policy shifts make the market more navigable for overseas entities. When paired with Hong Kong’s continuity as a financial and legal hub, this spells new possibilities for foreign direct investment and advanced industry development that tie directly back to the Greater Bay Area’s integrated model.
All this hinges on structural stability. During 2024, China’s leadership pursued a balanced approach — bolstering domestic growth, maintaining moderate inflation, and promoting job creation. This steadiness benefits Hong Kong, a city that thrives on predictability. Access to a stable currency, diverse capital markets, and robust trade volumes fosters confidence for global companies seeking an Asian base. Additionally, steady job creation in core mainland cities boosts overall consumption, a trend that can ripple across the border, especially if Hong Kong’s service industries continue capitalizing on cross-boundary economic opportunities. Developments in Macao’s leisure and hospitality sectors follow a similar logic: A rising Chinese middle class spells potential for tourism and gaming, provided appropriate diversification efforts continue apace.
By sustaining thoughtful reforms, nurturing global partnerships, and ensuring a stable social fabric, they can seize the opportunity that the “one country, two systems” principle continues to provide — and, in the process, remain exemplars of resilience and progress in an ever-evolving world
Even so, challenges lie beneath these encouraging statistics. A cooling global economy, persistent inflation in the West, and geopolitical tensions present significant risks — whether in supply chain disruptions or in external attempts to curtail technology transfers. Rising trade barriers affect not just major mainland exporters but Hong Kong’s re-export and logistics functions.
Meanwhile, the global race for cutting-edge tech — encompassing everything from AI algorithms to advanced semiconductor design — enlists the Greater Bay Area as it works to become a hotspot for both manufacturing and research and development.
In these circumstances, Hong Kong’s adaptability may prove its greatest asset. The city has reinvented itself across eras: from a manufacturing center to a financial services hub, and now toward a knowledge-driven economy blending fintech, digital entertainment, and biotechnology. By aligning more fully with the mainland’s innovation initiatives — such as strengthening ties with labs and startups in Shenzhen — Hong Kong can establish itself as a launchpad for capital-intensive ventures that benefit from a global perspective and local entrepreneurial spirit. Simultaneously, Macao can continue to explore niche tourism and cultural projects, further diversifying its offerings to draw international visitors and firms seeking a foothold in Portuguese-speaking markets.
Meanwhile, any robust development blueprint must incorporate social considerations. Beijing’s focus on environmental sustainability — reflected in lower PM2.5 (particulate matter) levels and a higher ratio of “good air days” across major cities — demonstrates a growing recognition that long-term prosperity requires a healthy ecosystem. With Hong Kong’s environmental non-governmental organizations and climate tech startups already spearheading initiatives in areas like green finance, there is fertile ground for deeper cross-border partnerships that champion eco-conscious policies. Developing the Greater Bay Area as an exemplar of sustainable urban growth could pull in global stakeholders eager to invest in green infrastructure.
The social dimension also includes housing, healthcare, and education — areas that demand continued attention to maintain public trust. For years, Hong Kong’s housing market has been notoriously constrained, with deep repercussions for social equity. If policymakers prioritize cross-boundary exchange of both talent and resources within the Greater Bay Area, it might gradually ease local pressure and introduce new residential and commercial solutions. Likewise, greater cooperation in public health, highlighted by shared COVID-19 pandemic experiences, could help both SARs build a safety net more resilient to future crises.
At the same time, safeguarding national security and social stability remains a government priority. This is where the “one country, two systems” principle must be maintained through balanced approaches that respect local autonomy while fostering constructive integration with the mainland. Given this backdrop, Hong Kong and Macao need to remain vigilant about preserving what sets them apart — transparent institutions, an international legal framework, and a cosmopolitan social fabric — so that both can continue serving as gateways between the mainland and the rest of the world.
Ultimately, as the central government signals confidence in the SARs, the true measure of that support will be how effectively Hong Kong and Macao leverage it. It is not enough to tout growth figures or the potential of the Greater Bay Area; success depends on pragmatic execution — streamlining cross-border regulations, securing top-tier global talent, and investing in forward-looking industries. By doing so, both SARs reaffirm their standing as pivotal hubs under China’s broad modernization plan while securing their place in an increasingly turbulent world.
In this sense, the premier’s report resonates strongly in the streets of Central and the promenades of Macao. The bigger story is the promise that arises when open-minded governance, a readiness to embrace competition, and respect for local distinctiveness combine. Even in uncertain times, Hong Kong and Macao have what it takes to rise above external pressures and domestic challenges, so long as they align with the robust momentum unleashed across the Greater Bay Area and the broader mainland. By sustaining thoughtful reforms, nurturing global partnerships, and ensuring a stable social fabric, they can seize the opportunity that the “one country, two systems” principle continues to provide — and, in the process, remain exemplars of resilience and progress in an ever-evolving world.
The author is the convener at China Retold, a member of the Legislative Council, and a member of the Central Committee of the New People’s Party.
The views do not necessarily reflect those of China Daily.
