HK’s world competitiveness ascending over 20 years | 20th Anniversary of Hong Kong’s Return to China
This undated picture reveals buildings on Hong Kong Island throughout Victoria Harbour in Hong Kong. (Xinhua picture)
HONG KONG – Johnny Ng, the primary post-doctorate pupil from Hong Kong at Tsinghua College, couldn’t perceive Mandarin twenty years in the past and didn’t count on his enterprise to thrive on the Chinese language mainland.
Ng, chairman of Hong Kong United Youth Affiliation, got here to Beijing in 2004 for research, and unexpectedly discovered expertise professionals who lent assist to his firm Titanium Group, which makes a speciality of facial recognition programs. Years later, his merchandise are extensively used on the mainland.
His expertise gives an instance of nearer ties between Hong Kong and the mainland, with Hong Kong entrepreneurs discovering enterprise alternatives on the mainland and serving to maintain Hong Kong’s world competitiveness.
July 1 marks the 20th anniversary of Hong Kong’s return from British rule and the institution of the Hong Kong Particular Administrative Area (HKSAR).
The previous twenty years witnessed the ascent of Hong Kong’s world competitiveness, supported by a sound enterprise atmosphere, stable infrastructure, and a complementary Chinese language mainland market.
The HKSAR was rated probably the most aggressive amongst 63 economies, adopted by Switzerland, Singapore and the US, the second yr in a row to occupy the highest spot, in accordance with the Worldwide Institute for Administration Growth (IMD) World Competitiveness Yearbook 2017.
Among the many 4 competitive-ness elements in IMD World Aggressive-ness Yearbook 2017, Hong Kong ranked prime globally in “authorities effectivity” and “enterprise effectivity”
Hong Kong ranked third on the IMD World Competitiveness scoreboard in 1997, trailing the US and Singapore.
Among the many 4 competitiveness elements in IMD World Competitiveness Yearbook 2017, Hong Kong ranked prime globally in “authorities effectivity” and “enterprise effectivity,” in accordance with the HKSAR authorities.
The indications that stood out among the many most improved economies have been associated to authorities and enterprise effectivity in addition to productiveness, and these economies “have maintained a business-friendly atmosphere that encourages openness and productiveness,” mentioned Arturo Bris, director of the IMD World Competitiveness Heart.
The view was echoed by Xiao Geng, professor on the College of Hong Kong, who mentioned that the competitiveness of Hong Kong primarily got here from its open and free market custom and establishments.
“Though prices of manufacturing elements equivalent to expertise and land are very costly, the transaction prices of creating commerce and finance offers are low, in order that Hong Kong is changing into a worldwide hub for commerce, funding and finance,” he mentioned.
The regular rise of Hong Kong’s world competitiveness was mirrored in different main rankings together with the World Competitiveness Index launched by the World Financial Discussion board (WEF).
Ranked within the prime 10 for the fifth consecutive yr, Hong Kong achieved a robust and constant efficiency, the WEF mentioned in its World Competitiveness Report 2016-2017.
The WEF cited the extremely subtle and reliable monetary sector, aggressive and open market, in addition to the versatile and environment friendly labor market as key elements supporting Hong Kong’s excessive rating.
“Behind the extremely environment friendly commerce and monetary markets is Hong Kong’s stable public infrastructure, each exhausting and smooth, together with high-density city housing and transport programs, impartial and sturdy authorized and monetary establishments, secure forex regime, and clear and environment friendly civil companies,” mentioned Xiao, additionally president of the Hong Kong Establishment for Worldwide Finance.
Hong Kong has been ranked among the many world’s most business-friendly economies for the reason that World Financial institution started to launch its Doing Enterprise report in 2005. The Doing Enterprise 2017 report ranked Hong Kong fourth for ease of doing enterprise amongst 190 economies, in comparison with fifth within the earlier report, mentioned Klaus Koch-Saldarriaga, member of the World Financial institution’s Doing Enterprise workforce.
The Doing Enterprise report finds that Hong Kong has created a greater enterprise atmosphere previously decade. Since 2008, Hong Kong has applied 21 reforms to make it simpler to do enterprise, which translated into substantive enhancements within the native enterprise regulatory framework, he mentioned.
HONG KONG-MAINLAND TOGETHER
The rise of Hong Kong’s world competitiveness was in tandem with the reform and opening up of the mainland, whose rating on the IMD World Competitiveness Yearbook climbed from 27 in 1997 to 25 in 2016 and jumped to 18 in 2017.
The exceptional enchancment of the Chinese language mainland within the rating might be traced to its dedication to worldwide commerce, and “this continues to drive the financial system and the development in authorities and enterprise effectivity,” mentioned Bris of the IMD World Competitiveness Heart.
Hong Kong is just not alone in its competitiveness stamina, as it’s partly a mirrored image of Chinese language mainland’s ascent in world competitiveness over the past twenty years, mentioned Wendy Liu, head of Nomura China fairness analysis.
Underneath the “one nation, two programs,” Hong Kong is just not solely in a position to protect the free market ecosystem but in addition deepen its financial integration with the mainland, notably with the neighboring Guangdong Province, Xiao mentioned.
“The complementary cities of Shenzhen because the mainland’s prime innovation middle, Guangzhou as its main worldwide and home commerce hub, and Foshan and Dongguan as its key manufacturing bases, have helped Hong Kong deepen its monetary markets for cross-border transactions, as demonstrated by the profitable launch of plenty of cross-border bridging companies for buying and selling of shares and bonds in Hong Kong,” Xiao mentioned.
“Not like our mother and father’ technology who made income by establishing crops on the mainland, younger individuals in Hong Kong can faucet the profession growth potential given by alternatives just like the Belt and Street Initiative and the development of Guangdong-Hong Kong-Macao Better Bay Space,” Ng mentioned.
CHALLENGES, HOPES AHEAD
The HKSAR is just not with out its challenges to maintain its world competitiveness, together with innovation bottlenecks and excessive dwelling prices.
“The problem for Hong Kong is to evolve from one of many world’s foremost monetary hubs to change into an progressive powerhouse,” famous the WEF’s World Competitiveness Report 2016-2017.
Many say a prime problem going through Hong Kong is the dearth of property provide. Hong Kong’s low taxation, environment friendly governance, protected and clear atmosphere and exquisite nature are interesting to abilities and buyers, however many have been held again by the excessive prices for housing and personal training, mentioned Liu.
Xiao believes that the primary problem for Hong Kong sooner or later is maintaining its aggressive establishments whereas enjoyable plenty of its bodily and social bottlenecks and constraints in land, property and abilities.
“Regardless of marked enhancements, there are nonetheless areas to deal with in an effort to ease the enterprise local weather for native entrepreneurs in Hong Kong and obtain long-term sustainability of excellent outcomes, as there may be room for enchancment within the areas of registering property, buying and selling throughout borders and resolving insolvency,” mentioned Koch-Saldarriaga of the World Financial institution.
Nonetheless, Hong Kong will have the ability to preserve its world competitiveness for the reason that principal elements behind its success, together with sturdy dedication of the central authorities to the “one nation, two programs,” deep and increasing mainland markets, and resilient market programs, haven’t modified, Xiao mentioned.
“If Hong Kong entrepreneurs can totally faucet the large market and expertise potential within the mainland, that may vastly assist Hong Kong to maintain its world competitiveness,” Ng mentioned.