At this year’s two sessions, Premier Li Qiang laid down 10 economic tasks for the country, including notably, “developing new quality productive forces in light of local conditions” and “expanding the higher-standard opening-up”. In presenting the Government Work Report, he also called on Hong Kong to deepen international exchanges and cooperation. The Hong Kong Special Administrative Region should heed the call and help the national economy deliver, by applying its strengths as a global metropolis in three targeted ways.
First, Hong Kong must make the most of its connectivity and international cosmopolitan setting and provide a testing ground for Chinese mainland enterprises, brands, and technologies. Local companies could “bring in” mainland tech companies and partner with them to “go global”, and the city could serve as an international gateway in the country’s development of new quality productive forces.
To give an example, the Hong Kong Productivity Council recently and successfully helped a Beijing artificial intelligence company pilot an autonomous trailer at Hong Kong International Airport.
To become a more effective gateway, Hong Kong must expand its focus beyond leading companies to small and medium-sized enterprises. The mainland boasts more than 50 million SMEs, with vast potential for development across traditional and emerging industries. Partnering with mainland SMEs that have global ambitions would be a way for Hong Kong to help the national economy open up further, while boosting national and international cooperation.
Hong Kong has 360,000 SMEs. If the city could attract just a small number of mainland SMEs with both substance and potential to settle in Hong Kong, the resulting industrial clusters and economic output would surely help recharge the country’s long-term development.
To bring in mainland SMEs, the SAR government needs to adopt a more targeted approach to courting industries, provinces or cities. Hong Kong members of the Chinese People’s Political Consultative Conference, as well as hometown associations, various chambers of commerce and industry and other groups in the city, could be roped in to connect with the corresponding government and industry bodies on the mainland, so as to better grasp the development needs of the industries, provinces or cities. For example, mainland SMEs that wish to go global can be identified and communicated with, so Hong Kong can better serve as their launchpad.
The Ministry of Industry and Information Technology has focused on cultivating industrial clusters featuring SMEs in recent years. Last year, it confirmed over 100 more industrial clusters, such as the textile and garment cluster in Panyu district of Guangzhou, Guangdong province, and the special robot cluster in Lubei district of Tangshan, Hebei province.
I am confident that Hong Kong has what it takes to shine as the nation’s “super value-adder” and contribute to international cooperation as a matchmaker, as it were. The textile industry will continue to take practical actions to support the SAR government in implementing national development policies and helping to achieve Chinese modernization and national rejuvenation
The Hong Kong and mainland sides need to work together closely to understand the needs and challenges of the different industrial clusters in going global. For example, some SMEs may need Hong Kong for supply chain management services or international certification; and other companies, for research and development or overseas expansion. The respective government departments in Hong Kong and on the mainland should provide support accordingly; actions should be direct and specific.
Through the Office for Attracting Strategic Enterprises, InvestHK and other agencies, the SAR government should more proactively attract business and investment. Policies and resources should be deployed to support industries and affiliated groups in collaborating with mainland provinces, cities and industries.
Hong Kong cannot stand idly by as the country pursues industrial development. Instead of being content to be a superconnector, Hong Kong should strive to “add value”. When the country formulates industrial policies, stakeholders in Hong Kong must get involved, including by joining national chambers of commerce and industry.
Second, Hong Kong must leverage the international connections of its traditional industries. The textile industry, for instance, has established solid connections with economies taking part in the Belt and Road Initiative. In March last year, the Hong Kong textile and garment sector signed a tripartite memorandum of understanding with its Southeast Asian and mainland counterparts to promote cooperation in innovative research, brand development and other areas. This is a shining example of how Hong Kong can be a “super value-adder”.
In this regard, I hope the SAR government will strengthen its policies and financial support for industries to facilitate deeper connections with government agencies domestically and internationally, with the wider aim of promoting high-quality development and making a deep impact on BRI-related economies.
Third, international exchanges should not only revolve around commerce and trade, but must also include culture and arts. With the support of the government and Hong Kong’s textile and fashion industry, the inaugural Hong Kong Fashion Fest, launched in November last year, was a successful display of the city’s appeal as an Asian hub for international fashion. The event drew 160,000 attendees from 25 countries and regions, including industry professionals, designers, celebrities and political and business representatives. It generated at least HK$200 million ($25.79 million) in public relations value, with a social media reach of over 100 million.
With help from international influencers, the fashion fest reminded the world of the panache of a world city like Hong Kong, and told the stories of Hong Kong and Asian fashion well. In effect, the event was also a cultural bridge between China and the rest of the world.
A Cambodian brand was very well received at the fashion fest and accepted so many orders that its founder decided to relocate to Hong Kong and expand the business. Clearly, the event has not only promoted international cooperation, but is also bringing economic benefits to Hong Kong and the region, in repositioning the city as a regional fashion and textile hub.
Chief Executive John Lee Ka-chiu has said the fashion fest will be an annual mega event. I’d like to see the festival succeed as an international event on a grander scale, through stronger cross-sector collaboration. The fashion fest should also leverage Hong Kong’s strengths in culture and arts to support the country in deepening international cooperation.
I am confident that Hong Kong has what it takes to shine as the nation’s “super value-adder” and contribute to international cooperation as a matchmaker, as it were. The textile industry will continue to take practical actions to support the SAR government in implementing national development policies and helping to achieve Chinese modernization and national rejuvenation.
The author is chairman of the Hong Kong Productivity Council, a member of the Legislative Council, and a member of the Business and Professionals Alliance for Hong Kong.
The views do not necessarily reflect those of China Daily.
