Give Hong Kong's dual advantages full play
Updated: 2017-06-30 06:44
(HK Edition)
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Since Hong Kong is celebrating its 20th anniversary of returning to the motherland, it should be a good time to review the advantages the city enjoys that have been the envy of its regional competitors as well as many provinces, autonomous regions and municipalities on the Chinese mainland.
As stipulated in the Basic Law, Hong Kong has dual advantages. It is a separate customs territory under Article 116 and also a special administrative region directly under the central government, as provided by Article 12.
The customs advantage means Hong Kong is virtually an independent economic entity with its own independent finance and taxation system; it needs not bear any national fiscal burden and can use all fiscal revenue exclusively for its own purposes (Article 106 and 108).It has also managed to create an economic and legal environment conducive to maintaining its status as an international financial center with monetary and financial systems prescribed by local laws as well as monetary and financial policies formulated on its own (Article 109 and 110). The city retains the Hong Kong dollar as legal tender (article 111); maintains its free port without any tariff unless prescribed by law (Article 114) and conducts many other internal affairs on its own.
Singapore may have similar advantages but has to shoulder its own defense expenditure. Hong Kong's defense is the responsibility of the central government.
The SAR advantage means numerous mainland enterprises have listed on the Hong Kong stock market and set up regional headquarters here to tap international markets. When Hong Kong was in great trouble after being hit by the SARS epidemic, the central government extended strong support to the SAR by encouraging mainland tourists to patronize the city. When Hong Kong suffered from financial crises or economic hardships, the mainland came to the rescue, extending a helping hand. To facilitate Hong Kong businesses and products' entry into the mainland market, the central authorities have offered preferential measures including the Closer Economic Partnership Arrangement (CEPA) with Hong Kong.
Hong Kong and the mainland have common interests and aspirations under "one country, two systems". This contrasts sharply with the relationship between Singapore and the rest of Association of Southeast Asian Nations, wherein the interests of each individual member country may differ.
One would naturally ask: Why Hong Kong has not achieved much greater prosperity after gaining brilliant economic achievements during the "Four Asian Dragon" era? The "Four Asian Dragons" era emerged before globalization, which came concurrently with the mainland's reform and opening-up.
To grasp the numerous opportunities brought by globalization, Hong Kong should have vigorously upgraded its manufacturing industries, promoted its professional services to overseas markets, and generated more land with various means for living space, tourism and business development. In short, Hong Kong should have created a more conducive environment to encourage investment, technological progress and development of new industries as required by Article 118 of the Basic Law; and formulate appropriate policies to promote and coordinate development of various trades as also required in Article 119 of the Basic Law.
Instead of pushing vehemently for economic and technological development, Hong Kong has spent too much energy on political development, overlooking the principle of gradual and orderly progress as prescribed by Article 45(2) and 68(2) of the Basic Law.
Judging from the democratization events worldwide since World War II, we realize that some countries have succeeded in implementing universal suffrage but others have failed. Without widespread recognition of national identity, narrower wealth disparity, proper guidance of political parties and a conducive political climate, universal suffrage is not achievable. Even if it were inadvertently achieved, it could cause economic drawbacks and social unease.
As in the case of Hong Kong, universal suffrage has yet to be achieved but almost everything has been,or is being, politicized. Over the past few years, we have witnessed how the "Occupy Central" and separatist movements polarized society.
As the SAR braces for the third decade after its return to the nation, it must stick to the original intention of "one country, two systems" and the Basic Law; enhance the sense of national identity among young people; promote further economic development by proactively participating in the Belt and Road Initiative and Guangdong-Hong Kong-Macao Greater Bay Area project.
(HK Edition 06/30/2017 page1)