Hong Kong’s 5-year plan must focus on what the city does best

Lead

Hong Kong is set to draft its first five-year plan, a move that industry leaders and analysts say should leverage the city's unique strengths rather than attempt to cover too broad a scope. The plan, as reported by the South China Morning Post, comes at a time when the city is seeking to define its role in China's national development while preserving its status as a global financial hub.

Coverage Comparison

Three separate analyses by the South China Morning Post provide complementary perspectives on the plan. One focuses on the significance of the plan in Hong Kong's history and its potential to integrate with mainland China's technology-driven economy. Another highlights recommendations from industry leaders, particularly around artificial intelligence (AI), while a third reflects on the plan's purpose and addresses concerns about government intervention.

Across these reports, a common theme emerges: Hong Kong's first five-year plan should be more than a local economic blueprint. It should, as one analysis notes, define how the city contributes to national development while maintaining the global connections that make it uniquely valuable.

Key Claims

Plan Scope and Focus

At the South China Morning Post's China Conference, Zhang Xiaoyan, vice-president of the China Centre for Information Industry Development, an institution under China's Ministry of Industry and Information Technology, advised that Hong Kong's first five-year plan should not be overly broad. "Hong Kong, because it's relatively smaller in terms of economy, so your first five-year plan should not be a very broad one," Zhang said. "You can pick the [strongest or] most competitive scenarios in Hong Kong, such as urban development, healthcare or finance, instead of manufacturing, because manufacturing in Hong Kong accounts for only 1 per cent of your general gross domestic product (GDP)."

Zhang also recommended establishing pilot programmes for cross-border data transfers, aiming to complement the mainland by building high-level industry data sets in collaboration with mainland partners.

Integration with Mainland China

Hong Kong's success is seen as dependent on combining the mainland's scientific and technological strengths with the city's internationally connected capital markets, universities, and legal institutions. To achieve greater convergence with mainland China's technology-driven economy, Hong Kong is building science and technology parks in the Northern Metropolis, a region spanning 30,000 hectares bordering Shenzhen. However, as one analysis points out, a service-based economy cannot build a globally competitive technology cluster from scratch.

Addressing Concerns

The decision to introduce a five-year plan has prompted questions about whether it signals greater government intervention at the expense of the free market. Analysts argue that the plan's purpose is not to remake Hong Kong in another development model's image but, within the framework of "one country, two systems," to place Hong Kong's strengths, national strategic opportunities, and local challenges within a coherent road map.

Hong Kong's past success rested on an open and flexible market, its free-port status, and extensive links to global capital. Yet, as one report notes, these advantages have been expressed mainly through the city's capacity to connect and allocate resources, rather than to create new economic structures. When land remains scarce, the industrial base is narrow, and research outcomes struggle to reach the market, flexibility alone does not produce a new growth curve. This reflects what economist Douglass North described as path dependence—a system becoming locked into an established model, limiting its willingness to explore alternatives.

Perspectives

Industry Leaders' View (via Zhang Xiaoyan): The plan should be focused, not broad, and capitalize on Hong Kong's strengths in areas like urban development, healthcare, and finance. AI should be a key focus, with pilot programmes for cross-border data transfers to complement the mainland.

Analysts' View (as presented in SCMP analyses): The plan should serve as a comprehensive roadmap integrating Hong Kong with mainland China, leveraging the mainland's technological strengths while preserving Hong Kong's unique global role. Concerns about government intervention are addressed by emphasizing the plan's role in providing a coherent framework for development.