Hong Kong is at its best when it is open to the world

Hong Kong’s success as a gateway city has always depended on its ability to connect not only with mainland China, but partners all over the world
Now, as the city reopens, Hong Kong must re-engage old friends in the West while forging new relationships in Asia

Brian Y. S. Wong

Published: 8:15am, 18 Jan 2023

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The only way forward for Hong Kong is internationalisation – restoring and deepening financial, economic and sociocultural ties with countries, regions and cities across the world. This is instrumental to the city’s revitalisation, as it seeks to emerge from three years of turmoil, lockdowns and palpable angst over its future.

To achieve this, we must re-engage our long-standing friends across finance, commerce and innovation; broker new partnerships with emerging regions; and, aspire to facilitate “backchannel” track-II dialogues that could only take place here.

First, Hong Kong must see the “international community” as more than just select segments of the Global North. Powerful markets, including the Association of Southeast Asian Nations (Asean), the Indian subcontinent and Latin America have in the past been overlooked.

That’s despite the fact Asean is the fifth-largest economy in the world (by total size), has a young, vibrant population with linguistic and cultural characteristics that overlap with those of Hong Kong, and is expected to play a significant role in balancing the US-China power struggle.

Businesses and investors from the Gulf States and BRICS nations have also long sought a reliable gateway with robust legal infrastructure to access mainland China.

As a common law jurisdiction with the potential to pioneer legal innovation – but also as a hub for finance, compliance and regulation, and regional commerce – Hong Kong should lower the barriers to market entry for high-net-worth individuals from emerging economies, while ensuring transparency and fairness in legal arbitration and mediation.

Chinese President Xi Jinping (left) greets Saudi Crown Prince Mohammed bin Salman after his arrival in Riyadh on December 8, 2022. Photo: Saudi Press Agency via AP

For all the talk about the Northern Metropolis, surprisingly few commentators seem to have considered its potential for connecting higher education institutes, taking in students not just from mainland China and Hong Kong, but the world at large.

We need to act swiftly to retain and cultivate home-grown talent with international exposure and literacy. Hong Kong is by far the most open and diverse academic community on Chinese soil. Such unique flexibility must remain.

Second, the city needs to re-engage its many long-standing friends and partners in the West after years of geopolitical upheaval which have seen pressures pile up from all directions.

Yet, despite the ideologically driven fracas, Hong Kong’s unique commitment to capitalism, low tax rates, bilingualism and freedom of entry and exit remains unmatched by any other Chinese city. We are still – by far – the best gateway for those seeking to access, understand and do business in China.

Chief Executive John Lee Ka-chiu joins business leaders at the global finance summit in Hong Kong on November 2, 2022. Photo: Sam Tsang

Certain commentators appear to treat all Western voices, thoughts and values as ostensibly harmful to the city’s interests. This is a confused and erroneous view.

Hong Kong’s decades of affluence are not solely the product of China’s impressive economic reforms and opening up since the late 1970s, but are also due to the presence and participation of Western private equity, hedge funds and conglomerates enamoured of the opportunities contained within China.

A continued deepening of collaboration between Hong Kong, Europe and the United States – in innovation, capital-raising and trade, but also human-to-human cooperation in high-skilled manufacturing and service sectors – is essential to the city’s drive towards greater competitiveness.

Expatriates from Western countries continue to play pivotal roles in steering the management, operations and strategy of multinationals whose regional headquarters are based in the city.

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Since the 20th party congress last October, China has sought to recalibrate its relations with both the United States and Europe. The summit between presidents Xi Jinping and Joe Biden, and the subsequent follow-up meetings between high-level officials in Beijing and Washington, has affirmed the importance of the Sino-American relationship.

And visits by European leaders to Beijing attest to the value of Sino-European economic and financial collaboration. Hong Kong should use this window to enable rapprochement between all parties in an increasingly multipolar world.

Excessive bellicosity towards key players in the West will not win us any favours, nor will it help to re-establish the economy’s credibility and appeal among the many international businesses and investors who are eyeing China’s reopening with cautious optimism.

Third, there is much room for aspiration and optimism with regard to society-led exchanges between mainland China, Hong Kong and the international community. Our civil society is defined by a can-do spirit that has enabled us to weather many ups and downs.

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We have world-leading scientists, economists, public intellectuals and China experts. We also have businesses and high-net-worth individuals who have spearheaded transformative campaigns in philanthropy and social service.

Track-II dialogue is an area where we possess an unparalleled comparative advantage. There are many discussions, seminars and workshops on China that would benefit from proximity and access to on-the-ground information within the country, and yet would be difficult to conduct on the mainland.

Hong Kong is best placed to play host to such debates and conversations between international intellectuals and heavyweights. We must show the world that we remain Asia’s crown jewel of cultural and economic influence.

Let’s be realistic. Words alone cannot restore the international community’s confidence. Actions are vital in showing sincerity. I believe that with tenacity and creativity, Hong Kong will once again thrive as China’s most international and progressive city.

Brian Wong is a DPhil in Politics candidate at Balliol College and teaches politics at the University of Oxford as a Rhodes Scholar (Hong Kong 2020)