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SCIO briefing on 'Hong Kong: Democratic Progress Under the Framework of One Country, Two Systems' white paper

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Hong Kong Commercial Daily:

With the implementation of the Hong Kong National Security Law and the improvement of the electoral system, the situation of Hong Kong patriots governing Hong Kong has become consolidated. My question is for the experts: how will the government of HKSAR improve the business environment and accelerate the development of Hong Kong? Thank you.

Zhi Zhenfeng:

A good business environment is the hallmark of Hong Kong. In fact, the policy of One Country, Two Systems is the fundamental guarantee for the business environment in Hong Kong. People around the world are concerned with the business environment in Hong Kong. Being an international financial, shipping, and trade center, Hong Kong is a bridge of China for international communication and an attractive place for foreign investment. The Chinese government always firmly supports the government of HKSAR to improve the business environment of Hong Kong and protect the interests of investors.

The rule of law underpins the best business environment. Since the return of Hong Kong to China, we have noticed that the business environment in Hong Kong continues to improve and is in a leading global position. The policy of One Country, Two Systems guarantees democracy and the rule of law in Hong Kong. According to the World Bank's Doing Business reports, Hong Kong is always at the forefront of various indicators. Why? The reason is that the high level of the rule of law ensures a good business environment. The policy of One Country, Two Systems has been successfully practiced in Hong Kong. Hong Kong now enjoys a stable political situation, good order, effective governance, high-level rule of law, a buoyant market economy, and an amiable business environment.

Anti-China forces both inside and outside the region are saboteurs of Hong Kong's business environment. In recent years, anti-China agitators in Hong Kong and foreign territories have been trying to undermine the rule of law in Hong Kong, causing serious social damage, confrontation and conflict, and harming Hong Kong's business environment. We can see that foreign countries such as the U.K. and the United States continue to smear, suppress and bad-mouth Hong Kong. In June last year, the United States ended its special treatment of Hong Kong. In April this year, U.S. Secretary of State Blinken reaffirmed the cancellation of U.S. perks for Hong Kong's autonomous trade and finance. In July, the U.S. trumped up business warnings regarding Hong Kong to directly intimidate enterprises and individuals in Hong Kong, and even imposed illegal so-called sanctions on HKSAR and mainland officials. Within Hong Kong, anti-China agitators launched an illegal "Occupy Central" movement in 2014, later especially during the 2019 turmoil, they obstructed traffic, destroyed facilities, set fires, smashed shops, looted amid the chaos, attacked people, and even privately manufactured arms and weapons, and occupied universities. For a period of time, they turned Hong Kong from one of the world's safest cities into a turbulent city, which caused investors to lose their sense of security and discouraged tourists from visiting.

At critical moments, the central authority is the strongest backing for safeguarding Hong Kong's business environment. With the introduction of a series of measures by the state to address both the symptoms and root causes, such as the enforcement of the Hong Kong National Security Law and the improvements to the electoral system of Hong Kong, relying on the strong support of the central authorities and the vast development hinterland of the Greater Bay Area, Hong Kong's society has gone from chaos to stability, the business environment has been continuously optimized, and the economy has rebounded rapidly, providing huge market space for foreign investors. Here are some examples and data: In 2020, Hong Kong's IPO funds raised exceeded HK$500 billion, an increase of more than 50% year on year, allowing it to remain the second largest IPO market in the world. A recent report issued by the International Monetary Fund (IMF) also reaffirmed Hong Kong's status as an international center. Hong Kong ranks as the sixth largest trading entity in goods in the world in terms of the total value of trade in goods. According to a report by the U.N. Conference on Trade and Development, Hong Kong ranks as the third largest destination for foreign direct investment in the world. And, in the latest 2021 World Digital Competitiveness Ranking, Hong Kong ranks first in Asia and second in the world.

The HKSAR government is very clear and understands that financial trade and commerce are important pillars of Hong Kong's economic prosperity. The principle of Hong Kong patriots governing Hong Kong can guarantee a better business environment in Hong Kong. The HKSAR is now entering a new stage of restored order, thriving society and further prosperity. Therefore, the HKSAR government must seize the development opportunities brought about by the country's comprehensive deepening of reform and opening-up, actively participate in the significant national construction strategies such as building the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative, accelerate integration into the overall national development, inject new momentum into Hong Kong's economic development, work hard to resolve various deep-seated problems that have plagued Hong Kong for a long time, and further optimize and enhance the business environment. Thank you.