John Lee, the Chief Executive of Hong Kong, on Wednesday unveiled the city's first five-year plan in a politically symbolic move that resembles Beijing's developmental approach. The aim of this plan is to expand Hong Kong's identity beyond finance towards technology and higher education.
Economic and Social Goals
In his speech to the legislature, Lee stated that the plan seeks to achieve progress in economic development, enhance competitiveness, improve social welfare, and realize advancements in integration with national development and service to it.
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The Hong Kong Special Administrative Region has long prided itself on minimal government intervention in the economy, although officials have increasingly pointed to Beijing's vision for the city. Mainland China approved its fifteenth five-year plan for the years 2026 to 2030 in March.
Development of the Northern Metropolis
Before launching the Hong Kong plan, the city government announced that the plan is intended as a framework for the strategic priorities of the financial center, rather than as a planned economy. The government emphasized the maintenance of the capitalist system.
One of the main objectives of the Hong Kong plan is to accelerate the development of the Northern Metropolis, which provides land for the innovation and technology industry and builds university towns near China's technology hub in Shenzhen. This proposal, first raised in 2021 by Carrie Lam, Lee's predecessor, aims to create 650,000 jobs and housing for 2.5 million people.
Under the five-year plan, the government hopes to increase the ratio of domestic expenditure on innovation activities to GDP from 1.63 percent in 2024 to 3 percent after 2030.
The plan also includes integrating the city's industrial development with scientific sectors in which Hong Kong excels in the Northern Metropolis. Each of the three planned university towns will have its unique focus, with one concentrating on areas such as artificial intelligence and robotics.
Strengthening Hong Kong's Role
The government aims to accelerate the development of Hong Kong as an innovation and technology hub, but also plans to strengthen its position as an international financial, maritime, commercial, and aviation center.
The government also proposes to enhance its role as the largest offshore center for the yuan, China's main currency, and to explore the use of the yuan for settling government expenses where appropriate.
Observers are watching to see if Lee will use the five-year plan and his latest policy proposals to motivate a second term next year. The former security chief has met Beijing's long-standing requirements for implementing national security legislation domestically by 2024. Officials stated that this law and the one imposed by China were necessary for the city's stability following large anti-government protests in 2019.
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Source: abcnews.com
