As a place for risk diversification, Hong Kong has become the preferred location for many companies’ regional headquarters, offices and talent hubs. China’s transshipment trade, logistics, shipping and aviation benefited from China’s emergence as the world’s largest factory and major market.
As China’s economy has grown, investment demand has also increased.Looking for mainland companies hong kong list As they become multinational. Hong Kong’s financial intermediary function has become important. As an international financial center, Hong Kong quickly overtook Tokyo and rivaled London and New York.
Asymmetries with the mainland in terms of wages, operating costs, and market penetration have worked to Hong Kong’s advantage, as it seeks not only brands and cultural styles, but also products and services. Those were their heydays.
10:46
Cantopop: A Hong Kong genre that has become popular among music lovers worldwide
Cantopop: A Hong Kong genre that has become popular among music lovers worldwide
However, the Asian and global financial crises exposed Hong Kong’s economic fragility and Hong Kong’s bias in monetary and monetary policy. real estate market.China’s rapid economic and technological development reduction The influence of Hong Kong as a role model.Hong Kong’s port has steadily developed fell behind And its relevance now rests primarily with international financial centres.
Economies, like cities, are aging and facing increasing capacity constraints. Previously, Hong Kong’s congestion and high costs of living and doing business may have seemed justified by its geopolitical advantages, connectivity, and abundance of opportunities.
Wealth creation was almost guaranteed by rapid growth on the mainland. Currently, even the mainland is experiencing setbacks and uncertainty is rising. slow down.
While closer integration with the mainland opens up opportunities, it can also be a double-edged sword. This asymmetry has gradually worked against Hong Kong as it has lost its business competitiveness.Hong Kongers’ tendency to travel to other cities in the Greater Bay Area such as shenzhen Dining, shopping, and entertainment are just the tip of the iceberg.
04:36
Hong Kongers look for bargains on roast chicken, soap and more at U.S. warehouse stores in mainland China
Hong Kongers look for bargains on roast chicken, soap and more at U.S. warehouse stores in mainland China
Hong Kong’s government and businesses cannot expect the Chinese government to continue to provide support or develop biased policies. ask Even if the number of tourists from the mainland increases, it will not save the city’s tourism industry. Hong Kong must find its own momentum for revitalization.
Competitiveness in new situations is key. Administrative statutory systems as well as strong corporate incentives for economic upgrading aimed at high-end value-added production to take advantage of a more educated population, benefit cost structures, and suppress substitution. There must be.
The blue economy remains Hong Kong’s strength. Maritime services such as finance, insurance, and arbitration continue to perform well, and there is a need to expand services to nearby ports.Hong Kong remains the world’s busiest cargo airport However, passenger transport has been hit hard by the pandemic. You can expand your aviation finance and other services.
The renewed enthusiasm for innovation and technology is encouraging. Apart from proper strategy and investment, an active ecosystem of government, business and research is required. You can’t expect quick wins just by doing that. the government gives away money So.
International financial centers remain a city’s trump card, but overdependence In the mainland capital. The University of Hong Kong’s recent green paper on economic policy states that while Hong Kong currently functions primarily as the center of China, Singapore is emerging as the center of Asia outside of China, particularly Southeast Asia. Should the city be satisfied with this, or should it diversify?
Most importantly, the deterioration of geopolitics has undermined its role as an East-West intermediary and dwindled its international influence. Hong Kong no longer enjoys a neutral space.Amid the US-China conflict, many foreign investors make equal The city’s political risks to the mainland.
Due to political uncertainty and national security concerns, emigration with young professionals Some foreign companies (Some have moved their regional offices to other Asian cities).Hong Kong more dependent Regarding mainland human resources and corporate investment.
China will continue to be a powerful economy and global player, but unless Hong Kong shakes up and reshapes itself, Hong Kong’s relevance will not be guaranteed. The economic downturn is not cyclical but structural.
A pedestrian in Jordan walks in front of a digital billboard displaying the Hang Seng Index on March 12.Photo: Eugene Lee
Restoring Hong Kong’s relevance requires a dual strategy of regionalization and reintermediation. It must embrace a solid regional vision embedded in both regions. Greater Bay Area and Asian, particularly East Asian contexts.
The key questions are what it can offer as unique advantages and how its limitations can be overcome through self-reinvention and cooperation. Understanding the local people and culture is just as important as the economy.you should think more deeply Hong Kong-Shenzhen twin city concept As interdependence increases.
The new normal of geopolitical conflict will continue. Hong Kong must be careful not to allow exclusion to creep in. Re-intermediation is the most difficult part and will depend on whether China values ​​Hong Kong as a support base and whether the West needs Hong Kong as a bridge to China. Even if the answer is yes, we cannot repeat the past.
To overcome adversity, Hong Kong should redouble its efforts to reach out, especially through Track 2 diplomacy. It must appeal to the nation and the world. Government officials should learn how to craft a narrative that moves beyond the boundaries and overcome reluctance to engage with international critics and skeptics.
Anthony Chan is a former Secretary of State for Transport and Housing (2012-17) and former president of the Hong Kong Education University (2008-12, then known as the Hong Kong Institute of Education).
