PoD Research Institute

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.

Hong Kong has always been a bastion of neoliberalism. In order to create a level playing field, the government rarely actively intervenes in the market. The government has locked fiscal expenditure at 20% of GDP. Even though the expenditure has increased slightly in recent years and has slightly broken this golden rule, it still adheres to the "big market, small government" principle. Constrained by governance philosophy and financial resources, Hong Kong has never had a strong industrial policy and can only passively expect the business community to respond to the government's vision. Li Jiachao issued his first "Policy Address" to lead the industrial layout and proactively attract investment, reflecting that the new government will break the inertia of "active non-intervention".