Think HK

In order to develop a Bay Area economy with global influence and competitiveness, the Greater Bay Area emphasizes the circulation of factors such as people flow, logistics, capital flow, and information flow. The first three types of circulation have been promoted in recent years through cross-border transportation infrastructure, employment and residence certificates, streamlined customs clearance procedures, negative lists for market access, and foreign exchange management facilitation. The interconnection of information flows depends on eliminating cross-border data barriers. Last year, the SAR Innovation and Technology Bureau and the Cyberspace Administration of China signed a memorandum of understanding, which brought a breakthrough in the cross-border flow of data in the Guangdong-Hong Kong-Macao Greater Bay Area. In order to further promote the development of the digital economy, a standard contract for the cross-border flow of personal information was further launched at the end of last year, which is expected to reduce the compliance costs of enterprises.

At the World Economic Forum Annual Meeting in Davos, Vice Premier Liu He announced that China's door will continue to be open to foreign investment, convincing global leaders that the economic vitality unleashed by China is the hope of boosting global growth. Three years after the dynamic was cleared, strict domestic lockdowns were relaxed, and Hong Kong raced against time to restart cross-border transportation. The market gradually showed signs of recovery, and the Lunar New Year was full of joy and peace. Customs clearance between the two places is the first step towards a full return to normal, and is also a good start for the new development of the Greater Bay Area.

It used to be a habit for Hong Kong people to return to their hometowns for retirement, and there are also housing estates where Hong Kong people live in Zhongshan, Shunde and other places. The living spaces in mainland cities in the Greater Bay Area are comfortable and spacious, and the food and life culture are similar, which attracts many Hong Kong people to go north to live and recuperate. At present, Hong Kong elders can enjoy preferential treatment for the elderly from local residents by presenting Mainland Elderly Cards. The “money goes with everyone” policy provides portable welfare measures so that they do not have to give up Hong Kong’s various subsidies even if they move to the mainland, making the Greater Bay Area an ideal place for retirement.

The outline document for the development of the Greater Bay Area focuses on spatial layout and economic planning. For many ordinary people, it is a top-level design and may not be able to see its meaning. Substantial progress needs to rely on major cooperation platforms such as Shenzhen Qianhai, Zhuhai Hengqin, Guangzhou Nansha and the Shenzhen-Hong Kong Loop before the public can see the results. He Lifeng, director of the National Development and Reform Commission, once proposed "targeted selection of major cooperation platforms." The "Qianhai Plan" and "Hengqin Plan" were released last year, and the "Nansha Plan" also caught up this year, with many projects achieving minor successes. .

The development potential of the Greater Bay Area is huge. Information about the nine cities in Guangdong Province is gradually circulating in Hong Kong, and many success stories are attracting citizens to travel north. More and more young people from Hong Kong are interested in finding jobs in the Greater Bay Area. Mainland employers are undoubtedly hungry for talent. However, the job market has always been fiercely competitive, with both mainland graduates and international talents from around the world. It is not easy for Hong Kong youth to stand out, and people are concerned about whether they can seize development opportunities and build personal careers.

The epidemic situation in Hong Kong has been recurring, and small, medium and micro enterprises have the most difficult time operating. On the contrary, the situation in the mainland is relatively stable, and foreign capital and large Hong Kong companies have not slowed down their entry into the Greater Bay Area, causing the market center of gravity to shift further north. Hong Kong's small and medium-sized enterprises are flexible and changeable, and many are still trying to transform and innovate in the face of adversity. However, not all small and medium-sized enterprises are able to explore and expand the Greater Bay Area market and find business opportunities. How can the government provide targeted support to help them get out of trouble?

RCEP will come into effect on the first day of 2022, and Hong Kong is seeking to join. In response to the wave of regional liberalization, the Institute of Emerging Markets at HKUST examines the relationship between Hong Kong and Southeast Asia from the perspective of the Greater Bay Area (Note). The following shares their main views, hoping to shed some light on how Hong Kong can leverage its own advantages and bring closer cooperation with partners in the Greater Bay Area and Southeast Asia to achieve win-win outcomes for all parties.