Hong Kong is at a pivotal point in its economic evolution, where aligning with the country’s policy-driven initiatives presents a pathway to sustained prosperity and deeper integration with the nation’s strategic vision.
As the country enters the final year of the national 14th Five-Year Plan (2021-25), significant structural shifts are underway, creating opportunities for the special administrative region’s industries to play an indispensable role in advancing the national priorities laid out in the latest Government Work Report.
The city’s established strengths — financial services, trade, technology and logistics — uniquely position it to contribute to and benefit from key focus areas, including high-end manufacturing, green finance, digital transformation, and rural revitalization. A forward-thinking approach that embraces these developments with precision and commitment will reinforce Hong Kong’s economic resilience and solidify its indispensable role in the broader national framework.
The push for industrial upgrading across China clearly emphasizes high-value, technology-driven sectors. As Beijing accelerates the development of new quality productive forces, Hong Kong’s advanced research institutions and innovation ecosystem carry immense potential to contribute to these efforts. The city’s universities and research institutes have long been at the forefront of scientific and technological advancements. Deepening collaboration with Chinese mainland counterparts in artificial intelligence, quantum computing, and biotechnology would yield transformative economic benefits. Establishing dedicated funding mechanisms to attract global talent and encouraging private-sector participation in these strategic industries would enhance Hong Kong’s role as a center for cutting-edge research and commercialization. A dynamic innovation landscape, supported by policy incentives and cross-border collaboration, would create a foundation for sustained industrial competitiveness.
Beyond innovation, the financial sector fosters China’s strategic economic objectives, particularly in green finance. The release of the 2024 Green Industry Catalogue underscores the central government’s determination to direct capital toward environmental sustainability, carbon neutrality, and clean technology. Hong Kong’s financial institutions are uniquely positioned to lead in this space, as they structure financial products such as green bonds, carbon credit trading platforms, and sustainability-linked loans that align with national objectives. A closer working relationship between the Hong Kong Monetary Authority and the People’s Bank of China would facilitate the seamless integration of financial standards, accelerating the flow of capital into green projects. Moreover, prioritizing the listing of mainland enterprises engaged in renewable energy and sustainability technologies on the Hong Kong Stock Exchange would reinforce the city’s role as the primary offshore fundraising hub for China’s ecological transition.
Trade and investment policies are also undergoing substantial refinement, presenting new opportunities for Hong Kong as a gateway for foreign capital entering China’s priority industries. Refining the negative list for foreign investment access, a list of industries where foreign investment is restricted or prohibited, and expanding the Catalogue of Industries for Encouraging Foreign Investment, a list of industries for which foreign investment is encouraged, highlight a calibrated approach to opening select sectors to foreign participation. Hong Kong’s legal and financial expertise offers a strategic advantage in facilitating these investments, linking up international firms and mainland enterprises. Structuring joint ventures, providing legal and financial advisory services, and ensuring compliance with the mainland’s evolving investment landscape would strengthen Hong Kong’s role as a conduit for quality foreign capital that aligns with national development goals.
The ongoing transformation of the country’s trade policies in response to global economic shifts further reinforces Hong Kong’s importance as a critical logistics and reexport hub. As geopolitical tensions introduce new uncertainties, particularly with the evolving US-China trade landscape, adapting trade routes and optimizing supply chains becomes increasingly vital. Strengthening economic ties with partners in the Belt and Road Initiative, a global infrastructure development strategy promoted by Beijing, would diversify market access while enhancing port infrastructure to facilitate seamless trade flows between China and emerging economies. Additionally, strategic participation in reexporting critical minerals and high-value manufacturing components would ensure that Hong Kong remains an essential link in China’s global supply chain strategy.
Rural revitalization, a key pillar of China’s economic strategy, presents a unique opportunity for Hong Kong enterprises to expand into new markets while supporting national priorities. With over 477 million people residing in the mainland’s rural areas, the modernization of agriculture, infrastructure, and public services is a critical driver of economic transformation. Hong Kong’s expertise in precision agriculture, smart farming, and e-commerce integration could be leveraged to enhance rural productivity and efficiency. In collaboration with mainland counterparts, financial institutions could develop innovative financing models to support infrastructure projects. At the same time, the healthcare sector could introduce telemedicine solutions and pharmaceutical distribution networks to improve medical accessibility in underserved regions. By actively participating in the country’s rural economic transformation, Hong Kong’s businesses would contribute to national development and unlock new avenues for sustainable growth.
Digital transformation represents another crucial area in which Hong Kong can play a defining role in the country’s broader economic strategy. Removing restrictions on foreign ownership in data centers and value-added telecom services opens the door for enhanced cross-border digital connectivity. Strengthening Hong Kong’s digital infrastructure and fostering collaboration in cloud computing, AI, and cybersecurity would reinforce the city’s position as a central hub for digital trade and technology exchange. Establishing advanced computing facilities, supported by targeted government incentives, would further align Hong Kong’s digital economy with the country’s push for technological self-sufficiency and industrial modernization.
The convergence of these economic priorities underscores the necessity of a proactive, forward-looking approach to aligning Hong Kong’s industrial policies with national strategy. By embracing innovation, strengthening financial integration, optimizing trade and investment facilitation, contributing to rural revitalization, and advancing digital transformation, Hong Kong can secure its place as an essential driver of national progress. The city’s role is not merely to adapt but to lead in areas where its expertise and strategic advantages bring tangible benefits to the broader economic landscape. A commitment to these principles will ensure that the SAR remains a participant in China’s economic development and a key architect of its future success.
The author is a solicitor, a Guangdong-Hong Kong-Macao Greater Bay Area lawyer, and a China-appointed attesting officer.
The views do not necessarily reflect those of China Daily.
