This was a somewhat stunning query from a senior govt of a significant worldwide model to a Hong Kong enterprise delegation visiting Europe just lately. The influential enterprise leaders from the Higher Hong Kong Basis, a privately funded non-profit organisation, had been assembly their European friends to trade views on town’s newest political and financial scenario.
The place China’s “duty-free purchasing paradise” must be situated turned a extra stimulating matter of dialog than the standard politics. As an invitee on the assembly, I realised that considerations about Hong Kong’s future, in some ways, ultimately choose its competitiveness and potential, even when politics is inevitably intertwined.
The southern province of Hainan, dubbed “China’s Hawaii”, is 12 occasions the dimensions of Hong Kong. It has remodeled into the nation’s largest duty-free purchasing vacation spot, with annual gross sales quantity in that sector for 2023 surging to greater than US$6.1 billion. The year-on-year progress of 25.4 per cent was due to a particular coverage granted by Beijing in 2020, with an formidable plan to rework all the island right into a duty-free zone by 2025. Greater than 800 worldwide and home manufacturers have already arrange store in Hainan, and extra are within the pipeline.
This factors to the fact that for a rustic of China’s measurement with such an enormous inhabitants, having two duty-free purchasing hubs shouldn’t be solely inevitable however there could possibly be room for much more.
This specific group of enterprise heavyweights from Hong Kong expressed frustration that factual details about town’s social, authorized, financial and monetary programs being totally different from the mainland’s was overshadowed by political and geopolitical narratives.
Non-official exchanges like this might assist clear up some misconceptions abroad, however much more must be accomplished, given how widespread these misconceptions are.
“One nation” means Beijing will name the pictures in deciding main improvement instructions for Hong Kong, identical to it has determined to place the main target again on financial progress for town. However attaining this purpose, together with taking sturdy steps to spice up tourism, doesn’t imply Beijing must be hand-holding town each step of the way in which.
Hong Kong should stroll the speak, and get Beijing’s backing to showcase how “two programs” shouldn’t be solely alive however working nicely. That can assist reassure buyers who, on the finish of the day, are extra involved about enterprise prospects and town’s potential for progress.