The 20th National Congress report is Xi Jinping's policy blueprint for the next five years. It also theorizes China's development experience, opens up a "Chinese-style modernization" path that is different from the West, and inspires other developing countries to break away from European and American hegemony. The United States spreads the theory of China threat everywhere and regards it as "the most serious geopolitical challenge." Recently, the House of Representatives overwhelmingly approved the establishment of the "Special Committee on Strategic Competition between the United States and the Communist Party of China", representing the Republican and Democratic parties who are unanimously targeting China. The international situation is turbulent and Hong Kong cannot be alone. The only way to break through the Western containment is to help the mainland improve its economic strength and strengthen cooperation with foreign interests.
The state focuses on ensuring high-tech production capabilities
When the 20th National Congress proposed a new development pattern to enhance the endogenous power and reliability of the domestic cycle, the outside world often misunderstood it as seeking self-sufficiency and locking down the country. In fact, there is no contradiction between the government's support for key enterprises and the protection of local production capabilities and the opening up of the system to the outside world and allowing foreign investment to enter the market and compete. The facts are before our eyes. Canada recently plans to tighten its foreign investment laws, in line with the United States, the United Kingdom and Australia, requiring transactions in key industries to undergo national security reviews and preventing Chinese companies from accessing local mineral resources. At present, some links in China's production chain still rely on foreign raw materials and are subject to long-term risks of chain interruption. If a sound production process cannot be guaranteed, economic stability will only be affected by political winds.
In the face of major changes dominated by geopolitics that have not been seen in a century, it can be expected that foreign competitors will monopolize technology and technology and lock China in the middle and low-end of the global industrial chain. China has been rushing to develop its chip industry in recent years. It acquired the UK's largest wafer fab two years ago. After one year of operation, the UK forced the sale of its controlling stake on national security grounds, leaving investors at a loss as to what to do. It is the only way for the top 20 to promote new industrialization. We must cultivate specialized, refined, distinctive and novel "specialized, special and new" enterprises to become invisible champions in a certain segment of the industrial chain, and start a battle to tackle key core technologies. , use the nationwide system to concentrate efforts on accomplishing major things.
Hong Kong is good at connecting domestic and international markets
The country focuses on the development of the real economy and key technologies, neither of which are Hong Kong's strengths. However, Hong Kong has a unique advantage in connecting the world, integrating internal and external demand and supply, opening up domestic and international dual cycles, and creating conditions for the innovation and technology economy. Hong Kong has applied to join the Regional Comprehensive Economic Partnership (RCEP) and will soon have a say in regional governance and participate in the formulation of standards for e-commerce, consumer rights, and intellectual property protection. Hong Kong is a member of an advanced society and is familiar with the international business system. It can assist the country in establishing high-level trade rules based on its national conditions, and is deeply integrated and highly complementary to the international market.
The economic tasks assigned to Hong Kong by the central government have always been a role that we have always been good at, using our professionalism and international connections to promote the mainland's opening up and high-quality development. The current term of the SAR government has established a "Steering Group for Integration into the Overall National Development Situation" to oversee the powers and responsibilities dispersed among different departments, connect the opportunities of the Greater Bay Area and the Belt and Road Initiative, and proactively fulfill the role that Hong Kong should assume. The 20th National Congress deployed Hong Kong to integrate into the overall development of the country. It is not just about economic construction, but also to achieve the grand goal of the great rejuvenation of the Chinese nation. Therefore, we must stand at an unprecedented strategic height to give full play to Hong Kong's unique role.
Ray Poon
Co-Convenor (Research), Path of Democracy
