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The Commission on Strategic Development (CSD), chaired by the Chief Executive, Mr Donald Tsang, will discuss "Hong Kong's role in the development of the Mainland" at its meeting to be held next Monday (April 19).
The Secretariat to the Commission today (April 12) issued a paper on the subject for members' consideration. The paper discusses changes in Hong Kong's role and economic relationship with the Mainland since its reform and opening up, and explores Hong Kong's future role in the medium to long-term development of the Mainland.
The development of Hong Kong has always been closely tied to that of the Mainland, and Hong Kong has played an indispensable role by providing capital and introducing market mechanisms etc since the reform and opening up. Continuous development of the Mainland as well as macro changes in the international and domestic situations in recent years have brought changes to the economic interaction between Hong Kong and the Mainland, such as phasing out of low value-added processing industries by Hong Kong enterprises on the Mainland; less acute demand from the Mainland for Hong Kong capital; Hong Kong's strengthened role as a bridge for leading Mainland enterprises to "go global" as well as "bringing in" foreign capital to the Mainland; Hong Kong service providers entering the Mainland's domestic market; and a greater need for closer regional economic co-operation between Hong Kong and the Pearl River Delta (PRD) region.
The paper explores Hong Kong's future role in the development of the Mainland for members' reference, including:
(1) As Hong Kong is the most internationalised financial centre in the country, the Central Authorities have time and again confirmed its role as an important testing ground for the Mainland's financial reforms and pledged support for Hong Kong to elevate its position as an international financial centre. Hong Kong should improve its financial infrastructure in support of the internationalisation of the RMB as well as its RMB financial and risk management services. Hong Kong should also further develop RMB products as well as RMB settlement and investment services in Asia. Hong Kong is also well-equipped to develop into an asset and wealth management centre for the Mainland;
(2) Hong Kong should strengthen its multiple roles as a world city in order to serve as a bridge for Mainland enterprises to "go global" and for the Mainland to "bring in" foreign investment. In drawing up plans for country-wide shipping and road transport networks, the Central Authorities can take into consideration Hong Kong's functions as an international aviation and shipping centre and a regional logistics hub. Looking ahead, Hong Kong will handle an increasing volume of international transshipment business, and should further develop high-end ancillary shipping services. It is also well placed to become a high-end inventory management and distribution centre;
(3) Hong Kong should actively promote regional co-operation and integrated development in the Greater PRD region with a view to making the region the most dynamic and internationally competitive city cluster in the Asia-Pacific region. This includes implementing macro policies of the Outline of the Plan for the Reform and Development of the Pearl River Delta (Outline) through the Framework Agreement on Hong Kong-Guangdong Co-operation (Framework Agreement), so as to improve the living environment of and transportation between the two places and facilitate the development of service industries of both places. Besides, Hong Kong being a modern services centre can facilitate the Mainland's process of "enhancing secondary industry and speeding up the development of tertiary industry". The Mainland and Hong Kong should continue to deepen the liberalisation measures under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), so that Hong Kong's modern services can reach further into the Mainland. In particular, at the regional level Hong Kong and Guangdong should leverage the Framework Agreement and the "early and pilot implementation" policy set out in the Outline to solve the problem of "big doors open, small doors not yet open" in the province;
(4) Moreover, Hong Kong should also serve as an education hub; enhance exchanges with Taiwan, make greater contribution to the development of good relations among the Mainland, Hong Kong and Taiwan and demonstrate the successful implementation of "One Country, Two Systems"; as well as strengthen regional co-operation with East Asia, in tandem with the Mainland's strategy of enhancing its "soft power" in the region.
The paper invites members to advise on a number of key issues, including Hong Kong's position during the period of the 12th Five-Year Plan (2011-2015) and the areas in which Hong Kong industries with clear advantages can co-operate with the Mainland.
"Our country is formulating the National 12th Five-Year Plan this year," a government spokesman said. "Hong Kong attaches great importance to participating in the formulation work. It is timely for the CSD to discuss Hong Kong's role in the medium to long-term development of the Mainland, with a view to achieving mutual benefit and development. We look forward to hearing members' views on this subject."
The CSD discussion paper is available for downloading at: (www.cpu.gov.hk/english/2010_csd_3rd_meeting.htm).
Ends/Monday, April 12, 2010
Issued at HKT 18:39
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