Hong Kong is at a transformative crossroads. The city is navigating a challenging geopolitical environment while facing a unique opportunity to align itself further with the national development framework through the Guangdong-Hong Kong-Macao Greater Bay Area. We are at a pivotal moment, where decisive action is essential to secure Hong Kong’s position as an integral player in China’s broader development and as an international powerhouse.
Xia Baolong, director of the Hong Kong and Macao Work Office of the Communist Party of China Central Committee, recently visited key Greater Bay Area hubs, including Hetao, Qianhai, and Yantian Port. His inspection tour underscored the central government’s strategic focus on the Greater Bay Area as an engine of growth, and particularly the importance of Qianhai and Hengqin in the development of Hong Kong and Macao under the “one country, two systems” principle. It highlighted its potential to reshape Hong Kong’s economic trajectory.
During his trip, Xia emphasized the need for Hong Kong to innovate, break new ground, and accelerate reform with the objective of strengthening collaboration with Qianhai and Hengqin. His views imply the call for Hong Kong to leave behind outdated practices and embrace innovation to achieve high-quality growth aligned with national aspirations.
The message is clear: Hong Kong must urgently seize these opportunities. Any delay risks losing ground to other Greater Bay Area cities already leveraging the central government’s support. Innovation, reform, and enhancing communications are the keys to securing Hong Kong’s future as a leader within the region.
The Greater Bay Area demonstrates a unique position of the “one country, two systems” principle, with three customs zones and three currencies, which has no precedent in other countries.
Among these, Qianhai serves as a model of collaboration, embodying the strategic vision of “supporting Hong Kong, serving the mainland, and facing the world”. This vision underscores Qianhai’s role as a bridge between Shenzhen and Hong Kong, fostering innovation and global competitiveness and is championed personally by President Xi Jinping.
However, the collaboration between Hong Kong and Qianhai remains underdeveloped. Even after the release of the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area in 2019, Hong Kong has struggled to establish an effective mechanism for seamless collaboration with Qianhai. Xia’s visit serves as a wake-up call to address these gaps and build a future of closer ties.
On the other hand, Qianhai’s growth has been remarkable. In the first three quarters of 2024, its GDP grew 8.2 percent year-on-year. According to Sun Yat-sen University’s Free Trade Zone Research Institute, it has ranked first among China’s 57 free trade zones for three consecutive years in institutional innovation. By 2024, Qianhai had implemented 14 new measures, bringing its total number of nationally replicated reforms to 102. These include initiatives like integrating international ship registration and classification management and setting benchmarks for reform across China.
Qianhai has also emerged in artificial intelligence (AI) and technological innovation. Partnerships with companies like Huawei have established the area as a hub for AI research, with facilities such as China’s first global intelligent industry innovation center and a large-model algorithm innovation service center. Currently, Qianhai hosts 249 major AI companies.
Efforts to foster entrepreneurship are a standout feature of Qianhai’s strategy. The “1510” development model for the Shenzhen-Hong Kong Youth Innovation and Entrepreneur Hub offers Hong Kong startups office space for just 1 yuan (14 US cents) per square meter per month, alongside a 500-million-yuan fund supported by five Hong Kong universities and 100,000 square meters of industrial space. This initiative has created a dynamic ecosystem for young entrepreneurs, strengthening ties between Shenzhen and Hong Kong.
Digital finance offers another promising avenue for collaboration. Hong Kong’s world-class financial services and professional expertise can complement Qianhai’s growing fintech ecosystem. One prominent example is WeBank, Tencent’s digital banking pioneer based in Qianhai, which recently established its technology headquarters in Hong Kong with an investment of $150 million. This partnership highlights the potential for synergies between the two places to drive the Greater Bay Area’s digital transformation.
Xia’s tour serves as a clarion call for Hong Kong to embrace reform, strengthen regional cooperation, and leverage its unique advantages to drive innovation and growth. The decisions made today will define Hong Kong’s role in the Greater Bay Area and its position on the global stage for decades to come
Hong Kong’s maritime industry is another vital area for innovation. Once a global leader in container shipping, Hong Kong now faces growing competition from regional ports. To maintain its status as an international maritime hub, it must shift its focus to high-value services such as maritime insurance, ship leasing, and green shipping. By providing Hong Kong-registered ships with support like passage permits and tax exemptions, and ensuring Qianhai shipping aligns with Hong Kong standards, both regions can work together to achieve “domestic and international dual circulation” in shipping. The Hong Kong Special Administrative Region government’s Action Plan on Green Maritime Fuel Bunkering further positions Hong Kong as a leader in sustainable shipping.
Institutional innovation will be crucial to overcoming cross-border barriers and unlocking synergies between Hong Kong and Qianhai. Xia’s call for reform emphasizes the importance of aligning Hong Kong’s policies with national technological innovation and talent development strategies. By fostering a robust innovation ecosystem and leveraging the Greater Bay Area’s extensive supply chains, Hong Kong can drive technological advancements that benefit the entire region.
Hong Kong’s unique “one country, two systems” principle positions the city as a magnet for global talent, especially in a world increasingly shaped by geopolitical tensions and protectionism. Combined with the whole Greater Bay Area’s resources, this advantage provides a platform for Hong Kong to scale up its industries and contribute to China’s technological leadership in the world.
The Greater Bay Area is more than a regional development initiative. This is an extraordinary opportunity for Hong Kong to reaffirm its status as a global financial and innovation hub. However, success will require bold thinking, strategic action, and a commitment to collaboration.
Xia’s tour serves as a clarion call for Hong Kong to embrace reform, strengthen regional cooperation, and leverage its unique advantages to drive innovation and growth. The decisions made today will define Hong Kong’s role in the Greater Bay Area and its position on the global stage for decades to come.
Time is of the essence. The Greater Bay Area is rapidly evolving into a global economic engine, and Hong Kong must seize this moment to lead, not just for its prosperity but as a vital contributor to China’s development story. The future is within reach for those willing to act decisively and with vision. For Hong Kong, the stakes could not be higher, and the opportunities could not be more profound.
The author is president of Our Hong Kong Foundation.
The views do not necessarily reflect those of China Daily.
