On the 27th anniversary of the establishment of the Hong Kong Special Administrative Region, it may be a good time to assess its recent changes.
First and foremost, many Hong Kong residents still remember that on the SAR’s anniversary date in 2019, violent rioters wrecked the Legislative Council chamber, causing over HK$40 million ($5.12 million) in damages. This incident made Hong Kong residents appreciate the importance of legislating to protect national security. The evidence revealed in the ongoing trials of Jimmy Lai Chee-ying and the 47 defendants in the “35+ primary election” case has exposed the nefarious roles played by external forces in cultivating and financing radical opposition activists and NGOs in Hong Kong, culminating in the 2019-20 insurrection and wanton destruction of public infrastructure and private businesses.
The overwhelming public support (99 percent of 13,147 submissions) for the Safeguarding National Security Ordinance showed that Hong Kong people have finally woken up to the threats to national security.
The more that foreign “experts” and media tried to talk down the future of China and the SAR by propagating false narratives, such as the “China collapse” and “Hong Kong collapse” theories, the clearer Hong Kong people have come to understand their evil intentions, which have served to fire up patriotism in Hong Kong.
Contrary to all those doomsayers, Hong Kong continues to be internationally rated as one of the freest and safest places to live and work, with unfettered access to the internet, media, and religious freedom. Hong Kong’s free-market economy and financial systems are among the best in the world, as various independent rating agencies confirm.
Second, Hong Kong remains one of the least corrupt places in the world, contrary to the US-based Fortune magazine’s declaration in 1995 of “The Death of Hong Kong”, and that it would slump into a corrupt city after 1997. Transparency International’s annual Corruption Perceptions Index in 2023 ranked Hong Kong 14th out of 180 jurisdictions, higher than the United Kingdom (20th) and the United States (24th). Furthermore, the 2024 World Competitiveness Report ranked Hong Kong fourth out of 67 economies for “least bribery” and first in the Asia-Pacific region, reflecting the world’s confidence in doing business in Hong Kong.
Similarly, in the 2023 World Justice Project Rule of Law Index, Hong Kong was ranked 23rd out of 142 jurisdictions, higher than the US (26th), demonstrating the strength of the rule of law in the city.
Third, the people of Hong Kong have been impressed by the current SAR administration’s determination to tackle long-standing problems in the city. I am particularly struck by its efforts to clean up local marketplaces’ unsanitary and messy conditions. Having lived in Tai Po for over 20 years, I was previously disgusted by the poor hygiene and disorderly state of the main streets, caused by irresponsible shops and restaurants, with no apparent improvement over the years. However, since the launch of the Hong Kong New Cityscape clean-up campaign, the streets have remained tidy and clean for nearly two years, demonstrating that with sufficient political will, significant progress can be achieved. Let’s hope the current SAR administration will continue its efforts to tackle other perennial problems plaguing ordinary people’s lives.
Fourth, the development of the Guangdong-Hong Kong-Macao Greater Bay Area has effectively changed and enhanced the quality of life for Hong Kong people. Before 1997, it would have been unimaginable for ordinary Hong Kong residents to drive their cars across the Hong Kong-Zhuhai-Macao Bridge to tour the entire Guangdong province. The opening of additional checkpoints has greatly facilitated travel and improved the daily lives of residents on both sides.
To assess the success of a city, one should examine its growth momentum. In the latest International Institute for Management Development World Competitiveness Ranking, Hong Kong regained its status as the fifth-most competitive economy globally. In the first quarter of 2024, Hong Kong’s gross national income — the total income earned by Hong Kong residents from economic activities — increased 9.6 percent year-on-year, reaching HK$831 billion ($106.38 billion) at current market prices. The GDP, estimated at HK$769.7 billion at current market prices in the same quarter, recorded a 7.1 percent increase over the previous year.
Hong Kong’s primary growth momentum stems from its partnership with Chinese mainland cities in the GBA. The total economic output of the GBA reached 14 trillion yuan ($1.93 trillion) in 2023, driven by impressive progress in technology innovation, intercity transportation, and market integration. The GBA is home to over 75,000 national high-tech enterprises and leading technology companies such as Huawei, Tencent and BYD. The Global Innovation Index by the World Intellectual Property Organization ranked the Shenzhen-Hong Kong-Guangzhou science and technology cluster second in 2023 for the fourth consecutive year. Many Hong Kong institutions have capitalized on the opportunities in the GBA, with some Hong Kong-invested medical institutions already established in the region and more expected to follow suit.
Hong Kong has also benefited from the many favorable policies introduced by the central government, such as the recent announcement expanding the Individual Visit Scheme to cover 59 mainland cities. This has opened up immense market potential for Hong Kong’s tourism industry. Meanwhile, the China Securities Regulatory Commission unveiled five measures on capital-market cooperation with Hong Kong, which will help enhance Hong Kong’s status as an international financial center and promote the coordinated development of capital markets on both sides.
Hong Kong continues to strengthen its growth momentum from the evolving international market. It remains a significant trade partner with the US. In 2023, US exports to Hong Kong reached $28 billion, enjoying one of its highest trade surpluses at over $23 billion. There are over 1,300 US companies and about 90,000 US citizens in Hong Kong. The American Chamber of Commerce in Hong Kong reported that 76 percent of respondents view Hong Kong as a competitive global business hub, citing its international connectivity, free flow of capital, favorable tax regime, robust legal and regulatory system, and high quality of life.
Apart from traditional overseas markets like the US and Europe, Hong Kong continues to explore new growth impetus with emerging economies, especially the Association of Southeast Asian Nations’ members. There is no reason for pessimism about Hong Kong’s future.
For the younger generation, Hong Kong continues to offer high-quality education. Five local universities are ranked among the world’s top 100 by QS, all of which have improved their rankings in recent years. The University of Hong Kong is now ranked 17th globally.
The SAR government has also made great efforts to improve the public transportation system further. Residents in the New Territories are pleased with the extension of the East Rail line to Central. According to Bloomberg, Hong Kong has the best metropolitan public transit system in the world, ahead of Zurich, Stockholm, Singapore and Helsinki.
Critics have blamed the “brain drain” in recent years on the National Security Law for Hong Kong (NSL). However, this allegation does not hold up. Thousands of families immigrated to the UK after the 2019 unrest, and many of those who left are unlikely to return because of their criminal involvement in the 2019 riots and are fleeing justice. Many have returned, learning a bitter lesson from their poor experience abroad. Official data indicate that Hong Kong’s population, which dropped to 7.35 million after the 2019 events, has rebounded to 7.5 million by the end of 2023 due to the return of Hong Kong residents and the government’s successful talent recruitment campaign that has attracted 140,000 professionals from around the world. The expatriate community has also been recovering, with the number of Americans living in Hong Kong rebounding from 70,000 in 2022 to 84,000 in 2023.
These figures demonstrate that Hong Kong remains attractive to talent and expats. The implementation of the NSL has not affected the fundamental factors that contribute to Hong Kong’s internationalism and status as a free port, including its openness, judicial independence, clean government, freely convertible currency, free flow of capital, free trade policy, free flow of information, low tax rates, and cultural diversity.
Hong Kong remains a charming city to live in. It offers fine dining, exceptional natural beauty, and has a population that is intelligent, hardworking and pragmatic, and is ready and able to meet any future challenges. Experts predict that China will be the world’s economic future, and the SAR is best placed to capitalize on its advantages. There is no better place to raise your children than Hong Kong.
The author is an honorary fellow of HKU Space and the Hong Kong Metropolitan University. He is also a council member of the Chinese Association of Hong Kong and Macao Studies and a retired deputy commissioner of the Independent Commission Against Corruption.
The views do not necessarily reflect those of China Daily.
