To be the Services Metropolis of the Pearl River Delta A Blueprint for Hong Kong (November 2002)

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SUMMARY REPORT

The integration between Hong Kong and the Pearl River Delta presents both opportunities and challenges for both jurisdictions. How should Hong Kong and the PRD cooperate to take advantage of the strength of each other? And how should they position themselves in the increasingly competitive global market place?

A Blueprint for Hong Kong in Greater PRD integration

The Hong Kong General Chamber of Commerce is a staunch advocate of “Greater Pearl River Delta” integration. In 2002, the Chamber formed a study group under the auspices of its service policy think tank, the Hong Kong Coalition of Service Industries, to examine Hong Kong’s long-term role in the PRD, and to formulate a blueprint for Hong Kong in the “Greater PRD era”.

The HKCSI developed a three-level conceptual framework to analyse the complicated issues in HK/PRD integration. This consists of

• a strategic perspective: building a common vision and a shared commitment to succeed;
• a systemic perspective: forging closer relationships between governments, and overcoming structural impediments to movement of people and cargo;
• a market dynamics perspective: facilitating the dynamism of the PRD market place – the myriad of social and economic activities ranging from financial services, retail, tourism, professional services, logistics to environment, etc..

From the analysis the HKCSI formulated a set of vision statements and developed 80 action recommendations.

The Vision: the services megalopolis of modern China

Our vision for the next 15-20 years is that of a HK/PRD becoming, together, the services megalopolis of China and the world. This vision is characterised by the following elements.

• A common purpose. Hong Kong and the PRD’s leadership would share the same commitment and would “compete together”, not against each other.
• Institutional partnership. There would be strong institutional linkage between Hong Kong and the PRD, in the public as well as private sectors. They will have clear understanding of each other’s respective roles.
• An international talent pool. Hong Kong would be a place of talents and a place to attract talents – providing quality human resources for the PRD and the whole country, while at the same time attracting talents from the country and around the world.
• A fully connected HK/PRD. There would be an integrated transport system that enhances tourism, logistics, distribution and mobility of people. Hong Kong will act as the transport hub for the PRD while together Hong Kong and the PRD will act as hub for the country and the world.
• A services centre. Hong Kong and the PRD would become the most dynamic financial, tourism, distribution and information centre for the country, the “services megalopolis” of China, Asia and the world, offering the most vibrant and efficient services. They would be the financial and professional services centre for Greater China; the most efficient and competitive logistics port; the most exciting tourist destination; and the shopping mecca of the world.

Ten recommendations

From the 80 recommendations, the Chamber has identified ten actionable priority items which would bring concrete benefits to Hong Kong and the PRD.

Institutional structure

1. A Greater PRD Council, modeled upon APEC (Asia Pacific Economic Council), should be established for the governments of various PRD cities. The Council would provide a forum to enhance understanding and cooperation on key matters in HK/PRD integration such as sharing of information, coordination of strategic plans, industrial re-structuring, and environmental cooperation.
2. There should be better coordination among private sector organisations in representing the collective interests of Hong Kong and the PRD to the outside world. To facilitate that, a convention for the private sector (of both Hong Kong and the PRD) should be organized to gather input on common issues and to create influence.
   

3. There should be a joint effort by major business promotional bodies such as the Chamber, the Trade Development Council and InvestHK, to launch a promotional programme on HK/PRD integration. This programme should be two-prone, namely, promotion within PRD, and promoting HK/PRD to the world.

4. The mutual recognition of professions between Hong Kong and the PRD should be speeded up. This could be achieved through a Memorandum of Understanding on mutual recognition, modeled upon the one recently signed between the Hong Kong Coalition of Professional Services and their Shanghai counterparts.
5. To facilitate businessmen in the PRD to obtain business visas to Hong Kong, Hong Kong government should set up offices in major cities in the PRD to promote Hong Kong industries as well as speed up the processing of business visas.
6. Apart from relaxing immigration rules to attract quality mainlanders to Hong Kong, our population policy should be extended to include a long-term strategy and scholarship scheme to attract mainland talents.

People and cargo movement

7. The processes at the border should be re-examined to effect efficient clearance of people and cargo. For people movement, 24-hour crossing at Lowu should be introduced early. For goods, a study on the possible operation of joint customs should be conducted.

Infrastructure and environment

8. Ports in the PRD should cooperation to form a “Port Alliance” for utilisation of facilities, information sharing and joint marketing.
9. A decision on the alignment of the bridge crossing from Hong Kong to Macau/Zhuhai should be made soon, in full cooperation with the other jurisdictions involved.
10. With regard to environment and public health, a “Regional Environmental Institution” could be established under the Greater PRD Council, to provide a forum for settling inter-regional environmental conflicts and to promote information sharing and collaboration on public health issues. It could be supported by a non-political “Sustainable Development Council” for the whole PRD region.

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