Hong Kong must revive growth and drive reforms with government’s ‘visible hand’
Hong Kong authorities should act as a “visible hand” to break down barriers erected by vested interests and revive growth momentum through reform under its maiden five-year plan, a former Beijing official overseeing the city’s affairs has said. Deng Zhonghua, former deputy director of the State Council’s Hong Kong and Macau Affairs Office, also said on Saturday that Hong Kong must empower…
Former Beijing official Deng Zhonghua has advised Hong Kong authorities to act as a "visible hand" to eliminate barriers created by powerful interests and spur growth through reform under the city's inaugural five-year plan. Deng, who now heads the semi-official Chinese Association of Hong Kong and Macau Studies, emphasized that the plan would address entrenched vested interests and uneven benefits from development by adopting a reform-oriented strategy.
The five-year plan, he explained, moves away from a free market with minimal government intervention towards a harmonious blend of an efficient market and a capable government, performing the role of the "visible hand" to effectively regulate and guide areas where the market falls short. Speaking at a seminar on the five-year plans of Hong Kong and Macau, Deng highlighted the plan as a crucial step in implementing the "one country, two systems" principle, which aligns with the national blueprint.
The plan tackles longstanding challenges such as a narrow economic structure, weak growth momentum, entrenched vested interests, and uneven development benefits by breaking down barriers created by vested interests, fostering new growth drivers, and improving mechanisms for sharing development benefits in housing, healthcare, elderly care, and education.
Deng urged the government to maintain a reform mindset, particularly in supporting emerging industries and enhancing residents' livelihoods. He stressed that innovation is key to overcoming challenges and generating new growth momentum, urging officials to pursue institutional innovation to deregulate and empower emerging industries, establish a resilient reform mechanism, and improve mechanisms for sharing development benefits in key areas.
Deng noted that the five-year plan would improve governance effectiveness in Hong Kong and Macau, shifting from reactive, short-term responses to proactive, comprehensive, and long-term planning. Under the plan, Hong Kong and Macau would retain advantages like free-port status, low tax rates, marketisation, and the rule of law while strengthening development guidance through policy incentives and government funding.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
