Now Hong Kong must turn its international edge into national impact

Hong Kong’s inaugural five-year plan signifies a fresh phase for the metropolis and will incite discourse regarding individual priorities and projects. However, an additional query merits consideration: what can Hong Kong contribute to the national trajectory in the ensuing five years? As China commences its 15th five-year plan, Hong Kong possesses a chance to deliberate more purposefully on its unique contribution to national advancement.

While Hong Kong’s designation as a "superconnector" remains accurate, this role is transforming. The city’s worth emanates from its capacity to facilitate the movement of businesses, capital, talent, and ideas across diverse markets and systems. This aptitude has been honed over generations. Hong Kong’s value arises from its intricate ties with the mainland, an international financial framework, common law heritage, expert knowledge, and extensive global business networks.

These attributes become particularly advantageous as geopolitical tensions, technological advancements, and evolving supply chains render cross-border commerce more intricate. For much of Hong Kong’s economic epoch, its intermediary status was linked to funneling the world into China. International firms utilized the city to grasp, invest in, and transact with the mainland.

This function persists, yet an increasingly substantial flow is occurring in the opposite direction, as mainland businesses seek fresh markets and prospects abroad. Recent data underscore this reciprocal role. In the past year, InvestHK facilitated a record 560 non-local entities to establish or broaden their presence in Hong Kong, a metropolis home to a record 11,070 enterprises with non-local parent companies.

Of the 560 non-local firms, 298 hailed from the mainland and most, according to the government, intended to leverage Hong Kong for global expansion or were already doing so. This highlights a crucial opportunity for Hong Kong in the next five years. The city can persist as a platform for international entities pursuing prospects in China while emerging as an even more efficient catalyst for mainland entities expanding overseas.

Achieving this effectively necessitates more than merely linking companies with markets. A mainland enterprise venturing globally may necessitate capital acquisition, comprehension of unfamiliar laws and regulations, risk management, intellectual property protection, brand establishment, and the identification of dependable partners.

International entities entering China likewise require local insights, professional counsel, and trustworthy networks. Hong Kong has amassed decades of expertise in numerous of these domains. The Task Force on Supporting Mainland Enterprises in Going Global (GoGlobal Task Force) exemplifies how these capabilities are being consolidated, harnessing expertise across finance, law, accounting, marketing, logistics, technology, and other professional services.

This is where Hong Kong can embody its status as a "super value-adder." Its impact should transcend mere connection provision. It should employ its international experience and professional prowess to enhance cross-border connections and create amplified value from them. There should be no contradiction between Hong Kong's increased integration with national development and preservation of its international character.

The more globally connected Hong Kong remains, the more it can bolster a China increasingly engaged with the world. Moreover, deeper involvement in national development can fortify Hong Kong’s capacity to connect international businesses, investors, and talent with opportunities across the country. Being backed by China and linked to the world are complementary strengths.

However, harnessing these strengths effectively necessitates more than governmental efforts. This aligns with the approach outlined for the forthcoming five years. Chief Executive John Lee Ka-chiu has emphasized that while the government will steer, coordinate resources, and establish policies, attaining the optimal results will necessitate collective participation.

This wider involvement is pertinent because much of what renders Hong Kong globally pertinent resides within society: businesses with global market experience, professionals accustomed to working across jurisdictions, universities with international networks, entrepreneurs seeking opportunities beyond familiar markets, and individuals capable of operating across languages and cultures.

Businesses and institutions should accordingly contemplate how their strengths can augment Hong Kong’s role over the next five years. Companies can invest and forge partnerships across the mainland and abroad. Professional services can aid businesses in navigating an increasingly complex international milieu. Universities can deepen collaboration with institutions on the mainland and globally, bolstering the flow of knowledge, research, and talent.

Hong Kong must also remain outward-looking. The city’s prosperity has stemmed from enabling people, capital, businesses, and ideas from across the globe to converge here. Maintaining this openness while engaging more profoundly in national development enhances rather than diminishes Hong Kong’s distinctive contribution. Ultimately, the benefits must extend beyond businesses and economic metrics.

A competitive, prosperous, and internationally relevant Hong Kong should generate superior opportunities for the next generation and provide young individuals with confidence that they can forge their futures in the city. The decisions made over these five years will shape the city they inherit. China’s 15th five-year plan provides a broader national framework, while Hong Kong’s initial five-year plan provides the city with direction within it.

Translating this direction into progress will necessitate collaboration between the government, business, and society. Hong Kong is an international city backed by China and linked to the world. Over the next five years, it must leverage its distinctive attributes to deliver greater value to the nation.