The third plenary session of the 20th Central Committee of the Communist Party of China, held from Monday to Thursday in Beijing, has underscored the nation’s commitment to further deepening reform and propelling Chinese modernization.
This historic session, which adopted a resolution on further deepening reform comprehensively to advance Chinese modernization reflects the national leadership’s resolve to refine and develop the socialist system with Chinese characteristics and to enhance the national governance system and capacity.
In this context, Hong Kong, with its unique position as a special administrative region of China, can play a pivotal role in supporting and advancing these national objectives.
Hong Kong has historically served as a bridge between the Chinese mainland and the rest of the world. Its unique position as a major international financial hub, coupled with its legal system rooted in common law, has endowed it with a high degree of economic freedom and a well-established business environment. The “one country, two systems” framework has allowed Hong Kong to maintain its own economic and administrative systems while being an integral part of China. This unique status positions the SAR as a critical player in China’s broader strategy of reform and modernization.
Hong Kong’s financial markets are among the most sophisticated in the world. As China continues to open up its financial sector, Hong Kong can serve as a vital conduit for foreign investment into the mainland. The Stock Connect and Bond Connect programs, which link Hong Kong’s financial markets with those of the mainland, are prime examples of how Hong Kong can facilitate greater financial integration. These programs have not only provided international investors with unprecedented access to mainland markets but have also enhanced their liquidity and depth.
Moreover, Hong Kong’s robust regulatory framework and its experience in managing a complex financial ecosystem can be invaluable in helping the mainland to implement reforms in its financial sector. The SAR’s expertise in fintech and its vibrant startup ecosystem can also contribute to the nation’s ambitions in leading the next wave of technological innovation. By fostering closer collaboration between Hong Kong and mainland tech firms, the country can leverage the strengths of both regions to drive innovation in areas such as blockchain, artificial intelligence, and digital banking.
Hong Kong has long been a major trading hub, with its port serving as one of the busiest in the world. As China seeks to expand its global trade networks under programs like the Belt and Road Initiative, the SAR’s strategic location and experience in international trade can provide significant support; it can act as a logistics and distribution center, facilitating trade between the mainland and other participants of the BRI. Additionally, Hong Kong’s free port status and its comprehensive network of trade agreements can help to streamline customs procedures and reduce trade barriers, thereby enhancing the mainland’s connectivity with global markets.
Hong Kong can also play a crucial role in promoting economic cooperation within the Guangdong-Hong Kong-Macao Greater Bay Area. Hong Kong’s advanced services sector, particularly in finance, professional services, and logistics, can complement the manufacturing prowess of the mainland cities in the GBA, fostering a synergistic economic relationship that can drive regional growth and development.
The rule of law and a transparent legal system are cornerstones of Hong Kong’s success. As the mainland continues to reform its legal and institutional frameworks, Hong Kong’s experience can serve as a valuable reference. The SAR’s common-law legal system offers a well-tested model for resolving commercial disputes and protecting property rights. By sharing best practices and providing expertise in areas such as corporate governance, regulatory compliance, and intellectual property protection, Hong Kong can assist the mainland in reforming its legal and institutional frameworks.
Furthermore, Hong Kong’s arbitration and mediation services are highly regarded globally. The Hong Kong International Arbitration Centre is one of the leading arbitration institutions in Asia. As the mainland seeks to resolve cross-border commercial disputes efficiently, Hong Kong can offer its services as a neutral and reputable venue for arbitration and mediation, thereby contributing to the predictability of the mainland business environment.
Education and talent development are critical to China’s modernization efforts. The SAR’s universities are among the best in Asia and the world, offering high-quality education and cutting-edge research. Collaborative programs and partnerships between Hong Kong and mainland universities can enhance the quality of higher education and foster the exchange of knowledge and expertise. Joint research initiatives in emerging fields such as biotechnology, environmental science, and information technology can drive innovation and contribute to the country’s technological advancement.
Moreover, Hong Kong’s diverse and international environment can attract top talent from around the world. By creating favorable policies and incentives for international students and professionals, the city can serve as a hub for attracting and nurturing talent that can contribute to the country’s modernization efforts. The SAR’s experience in managing a multicultural workforce can also provide valuable insights for the mainland as it seeks to create a more inclusive and dynamic labor market.
Cultural exchange is a vital component of China’s strategy to enhance its soft power and global influence. Hong Kong, with its rich cultural heritage and its position as a global city, can play a significant role in promoting Chinese culture and values on the international stage. The SAR can serve as a cultural bridge, facilitating exchanges between China and other countries through initiatives such as cultural festivals, art exhibitions, and academic conferences.
The SAR’s media and entertainment industry, which has a significant global reach, can also contribute to China’s soft power. By producing high-quality content that reflects Chinese culture and values, the SAR’s media industry can help to shape global perceptions of China and promote a better understanding of its development path and aspirations.
While Hong Kong’s potential to contribute to the nation’s reform and modernization is immense, it is not without challenges. The SAR must navigate complex geopolitical dynamics, economic uncertainties, and social issues. Maintaining stability and harmony in Hong Kong is crucial for it to effectively play its role in supporting the broader national objectives. This requires a balanced approach that addresses the concerns of various stakeholders while upholding the “one country, two systems” principle.
At the same time, Hong Kong must seize the opportunities presented by the nation’s reform and modernization agenda. By aligning its own development strategies with national priorities, Hong Kong can unlock new avenues for growth and prosperity. This includes enhancing its competitiveness as a global financial center, fostering innovation and entrepreneurship, and deepening economic integration with the mainland.
The third plenary session of the 20th CPC Central Committee has set the stage for a new phase of reform and modernization in China. Hong Kong, with its unique position and strengths, can play a crucial role in supporting and advancing these national objectives. As China embarks on this new journey, the collaboration between Hong Kong and the mainland will be significant in shaping the future of China and achieving the national rejuvenation.
The author is a member of the Fujian Provincial Committee of the Chinese People’s Political Consultative Conference, and vice-president of the Internet Professional Association.
The views do not necessarily reflect those of China Daily.
