HKUST Business School Magazine

Innovation & Tech Hub Super Connector Free Economy Diversified CEPA Biz@HKUST Biz@HKUST 18 19 // Cover // Thought Leader For the Belt and Road to work, it needs to be a successful form of globalization effort which benefits China and the rest of the world. Internationalization is important as a simple bilateral program will not succeed. Hong Kong will play a significant role in ensuring that all sides benefit from a globalized approach. “We understand both sides better than anyone else,” Kwan says. As for the Greater Bay Area, Kwan believes that it is very different from other regional development programs in China. This is mainly because the Greater Bay Area also includes Macau and Hong Kong. “The different systems in Hong Kong and Macau make this region a super connector not just for Hong Kong and China, but for China and the rest of the world,” Kwan says. The Hong Kong model Both initiatives need an international market to connect to China and the rest of the world. Mainland China may not be able to do that by itself, so Hong Kong can step in, he says. “We are the pioneers, the testing ground, and hopefully Hong Kong will serve as a firewall in that process,” Kwan says. “This is the model that they are using when they connect with the rest of the world.” Jobs will be plentiful in Hong Kong as a result. Despite any cyclical and sector employment problems that may arise because of the pandemic or social unrest, from the perspective of global development, Hong Kong remains in a good position because the transition to a multipolar world will take decades to complete. Many new opportunities will be created. The challenge will be whether the city will be able to fill the new jobs, and this is where education comes in. “We have a lot of work to do,” Kwan says. Hong Kong’s Strategic Position Hong Kong has a key role to play Kwan believes that Hong Kong will continue to be in a great position despite the trade conflict, because it remains one of the few truly open and truly international cities. Hong Kong needs to capitalize on these qualities, Kwan says. He continues to see Hong Kong playing a key role in China’s internationalization. “Some people think that China is closing its doors, but that’s wrong. In terms of trade, China is lowering tariffs and trade barriers. Some say it’s progressing too slowly, but if you compare its development to that of other countries, you find they did not achieve this very quickly either,” he says. Multilateral development will not happen overnight, so Hong Kong will continue to play an even more important role. “We are in the best position to help China open up and become more international,” Kwan says. To support these developments, Kwan believes that Hong Kong should play a more active role in two important initiatives: the Belt and Road and the Greater Bay Area (GBA). HK remains one of the world’s most Free Economy . It is also one of the most service- oriented economies in the world, with the services sector accounting for 93.4 percent of its GDP in 2019. HK has trade relations with many countries. It is a founding member of the WTO, a member of the Asia-Pacific Economic Cooperation, the Pacific Economic Cooperation Council, and the Asian Development Bank. It also has many free-trade agreements in force, including the Mainland and HK Closer Economic Partnership Arrangement ( CEPA ). HK was the world’s Sixth Largest Exporter of trading merchandise in 2020, according to the WTO, rising from the eighth in 2019. Because of its connections to China and the rest of the world, its strong research and development capabilities, and its world-class universities, HK ranked 11th globally in 2020 as an Innovation and Technology hub.