Hong Kong unveils five-year plan to deepen tech and economic ties with China

HONG KONG – The city's government has unveiled a five-year plan aimed at deepening economic and technological ties with mainland China. City leader John Lee announced the first Five-Year Plan, outlining the city's strategy for 2030 at the unveiling of the document. The plan seeks to increase research and development to three percent of the city's gross domestic product by 2030, up from 1.63 percent in 2024.

China, the world's second-largest economy, has prioritized scientific and technological self-reliance, investing heavily in industries like semiconductors and artificial intelligence to reduce dependence on the United States. Beijing, which has used five-year plans modeled on those of the former Soviet Union since the 1950s, aims to integrate Hong Kong with its national development goals.

Hong Kong, a British colony until 1997 and now a Chinese special administrative region, has long benefited from its semi-autonomous position as a free-market gateway for investment into and out of China. Christine Loh, a former government official and lawmaker, said the plan will provide Hong Kong with a "useful governance tool" to implement longer-term, strategic planning.

Critics have raised concerns over the potential environmental impact and strain on Hong Kong's public finances, as the plan also aims to accelerate the development of the Northern Metropolis, a massive tech hub near the border with mainland China.