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Worst may be over for HK
文章
2025 年 2 月 2 日
Regina Ip says the economy is bouncing back and Hong Kong has regained leading rankings in many global financial and competitiveness surveys, but the government must pursue technological and political innovation to see the city thrive
In the Year of the Snake, Hong Kong enters a world that is more perilous than ever, with US President Donald Trump threatening tariffs against key trading partners and intensifying technological competition with China. Comments from Chinese officials that there are “no winners” in a trade war drop strong hints that China would not hesitate to retaliate if it is targeted.
Hong Kong is powerless to put brakes on a trade or tech war, but when it comes to troubles roiling the city, the worst might be over.
Top on the list is the controversy over national security. Although Hong Kong is constitutionally required to implement national security legislation, the national security law Beijing enacted for Hong Kong in 2020 sparked a spate of sanctions, travel warnings and a precipitous plunge in Hong Kong’s relationship with the West.
Nearly five years after the enactment of the law, Hong Kong could be close to turning the corner. “National security first” remains the government’s credo, but hints of change could be seen in Secretary for Security Chris Tang Ping-keung’s letter to The Wall Street Journal on comments former US vice-president Mike Pence made at a business conference in Hong Kong last month.
After complaining about Pence’s “despicable” attempt at “political manipulation”, Tang concluded by saying, “The above notwithstanding, the Hong Kong Special Administrative Region government always strengthens ties and exchanges with different countries, including the US.
“Indeed, despite political differences in recent years, Hong Kong and the US continue to enjoy mutually respectful and beneficial business and social ties. Our city will continue to serve as the most effective bridge linking our motherland with the rest of the world for years to come”. This is a significant change in tone portending a more nuanced strategy towards the city’s critics.
On the economic front, Hong Kong is on the mend. The stock market is bouncing back. According to Bonnie Chan Yiting, CEO of Hong Kong Exchanges and Clearing, a pipeline of 100 companies are waiting to be listed. Visitor arrivals are up more than 30 per cent compared to 2023, and various schemes have helped to fill Hong Kong’s talent gap. In addition, Hong Kong has regained leading rankings in many international financial and competitiveness surveys.
The government has invested billions into research and innovation to jump-start its technological development. The high costs and many hurdles are to be expected given the late start. There are three areas the government must prioritise to catch up with global developments.
First, priority must be accorded to the adoption of generative artificial intelligence (AI) in and outside government. As AI applications thrive on open data and algorithms, the government should accelerate the implementation of its open data and cross-boundary data transfer policies agreed with the rest of the Guangdong-Hong Kong-Macau Greater Bay Area, to enable promising sectors such as healthcare and finance to flourish.
Second, to fortify Hong Kong’s position as a global financial centre, Hong Kong must not lose out in financial innovations, especially in digital finance. As the only part of China authorised to trade, invest and manage digital assets, Hong Kong should make full use of its mandate to play a greater role in stimulating the cryptocurrency industry.
One million cryptocurrency tokens are created every week, according to Coinbase CEO Brian Armstrong. The frenzy around cryptocurrency shows no sign of abating despite its risks. The government needs to push ahead with suitable relaxation of its regulatory regime to protect investors as well as attract more blockchain talent and cryptocurrency start-ups to Hong Kong.
Finally, innovation is not possible without the necessary talent. The government has tried to bring in talent with more diverse skills since the introduction of an accountability system for key government officials in 2002.
Yet despite further development through creating new positions of deputy directors of bureau and political assistants in 2008, the accountability system has failed to live up to expectations.
Part of the problem stems from the concession the government made to the civil service to preserve their grip on power when the accountability system was expanded in 2008. A 2007 consultation paper states squarely that the new deputy directors and political assistants “have no direct line of command vis-a-vis the permanent secretaries”. They were intended to assist bureau directors in the discharge of political duties, seen at that time as comprising mainly lobbying for legislative support, handling the media and attending events on behalf of bureau directors.
Because of this limitation, many deputy directors were unable to pick up more knowledge of government business or exert control over departments. Those who joined without the relevant professional knowledge or background were particularly weak and disadvantaged.
The world is changing so rapidly that more forward-thinking leaders with up-to-date technological know-how, international experience and political skills are necessary to assist the chief executive to implement reform and stay competitive. All governments need reinforcement and, from time to time, a shake-up.
While a sweeping, Trump-style Department of Government Efficiency might be counterproductive, an appropriate dose of creative disruption at this critical time would do the government much good.
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