CUHK

Hong Kong has a shortage of development land, insufficient housing supply, and insufficient land reserves to meet development and housing needs. The economic structure focuses on the service industry and the industry is univocal, limiting the employment prospects of young people. The imbalance between jobs and housing has put great pressure on the north-south transportation system, and citizens spend a lot of time and resources on transportation. In order to solve the above three development bottlenecks, the SAR government proposes to develop the northern metropolitan area, open up land space, promote re-industrialization, provide employment opportunities, and release the development potential of the New Territories.

The COVID-19 epidemic is raging and Hong Kong is facing unprecedented difficulties. The economy contracted by 6.1% in 2020, the largest decline on record. The unemployment rate is 5.9%, which is also a historical high. Tourism, construction and other consumer industries are the hardest hit areas. Overall trade rebounded sharply after a sharp decline in the first half of the year, mainly benefiting from the growth in exports to the mainland, but still recorded a slight decline throughout the year. As for trade in services, tourism and transportation came to a standstill, and only cross-border financial and fund-raising activities were active, leading to a slight increase in financial services. With the promulgation and implementation of the National Security Law in Hong Kong, society has gradually stabilized, but the road to economic recovery is still long.

Hong Kong experienced a difficult year in 2019. Social events brought a heavy atmosphere. The global economy was constrained by Sino-US relations, and the Hong Kong issue was regarded as a bargaining chip in the international game. For the whole year, GDP shrank by 1.2%, marking the first annual decline since 2009 and falling into a technical recession. In a series of incidents caused by the revision of the Fugitive Offenders Ordinance, nearly 7,000 people were arrested, and the social situation is of concern. The United States took the opportunity to pass the Hong Kong Human Rights and Democracy Act, believing that Hong Kong will be caught between the disputes between China and the United States for a long time. To cope with the multiple challenges of social problems, economic downturn and competition between major powers, we need to make good arrangements in the future to get out of the predicament.

In 2018, the global economy was affected by the risks of trade protectionism and trade friction, which raised concerns about where Hong Kong will go in terms of national development strategy and international political situation. There are many external uncertainties, and investors in Hong Kong are highly cautious. However, it still recorded a growth of 3% in previous years, which shows that its economic foundation is solid and has the ability to withstand short-term downward pressure. While actively responding to the external environment, Hong Kong is faced with internal challenges such as insufficient development space and increasing business costs. It must not only provide residential units to meet people's livelihood needs, but also increase industrial and commercial land to promote economic development. The turmoil caused by the rivalry between major powers is likely to continue for some time, and land shortages have always been a stumbling block to mid- to long-term development.

On the occasion of the 20th anniversary of China's return to the motherland, President Xi Jinping said that "there will be no boat rides after Suzhou" in Hong Kong. Seizing opportunities and seeking development is the golden key to solving Hong Kong's problems. In 2017, Hong Kong gradually reorganized its political and economic order. Many social conflict cases were brought to court, and the protesters paid the price for all the troubles. As the saying goes, Hong Kong cannot withstand internal strife. Fortunately, the economy has performed well in recent years. In 2017, it recorded a growth of 3.8%, a six-year high, laying the foundation for a harmonious and stable social environment.

The political disputes in recent years have brought severe challenges to Hong Kong, causing some Hong Kong people to lose confidence in their prospects. Immigration overseas has once again become a topic of discussion among Hong Kong people. "One country, two systems" is an unprecedented new attempt. The implementation process will have twists and turns, and it is necessary to gradually enrich the connotation and improve the implementation model during the exploration process. At the end of 2016, Wang Guangya, director of the Hong Kong and Macao Affairs Office of the State Council, was interviewed and affirmed that Hong Kong still plays an indispensable role for the central government in opening up to the outside world. As long as we face the difficulties and make preparations in line with the national plan, Hong Kong will continue to play a pivotal role in the country's overall development layout.