My Impressions of Hong Kong

by Anne Golden, President and CEO of The Conference Board of Canada

Hong Kong is facing significant challenges arising not from the handover in 1997, which has gone surprisingly smoothly, but from such factors as the restructuring of China’s economy due to China joining the WTO; the bursting of the high tech bubble and the Asian financial crisis; demographic pressures because of ageing; negative population growth, and immigration pressures.

Hong Kong is still confident about its future, and it has many advantages that underpin its ongoing role as a gateway and hub. 

These were my key impressions when I visited Hong Kong in March as a guest of the Hong Kong Special Administrative Region (HKSAR) Government. 

Hong Kong still leads the world in container traffic. It has a very strong financial services base, and it is safe and free of corruption. Tourism appeal will be enhanced when Disneyland opens in 2005.

I learned from the Hong Kong Export Credit Insurance Company that business is up. Tony Miller, Hong Kong’s Permanent Secretary for Financial Services, gave me an up-beat assessment with his remark that, “You don’t make money betting against Hong Kong."  He asserted that Hong Kong is now 84% a services economy.  He sees Hong Kong/Shanghai as similar to New York City and Chicago. Rather than competing with Shanghai, as is often discussed these days, he sees Hong Kong as a “New York" and Shanghai as a “Chicago".

Anthony Burger, Canadian Consul General in Hong Kong, agrees with Tony Miller’s positive outlook. At the end of the day, Hong Kong will continue to be a valuable gateway to China, especially for financial services. However, Hong Kong will have to adjust its price structure to compete.

Burger pointed out that Hong Kong’s challenge is typical of all city-states in that its relationship with the hinterland is critical. Historically, the city's prosperity has depended on its relationship with a weaker hinterland and as the hinterland strengthens, this role is challenged. Hong Kong does not now benefit optimally from access to South China. It is widely understood - at least by everyone with whom I spoke - that the key to Hong Kong’s future prosperity is better integration within its region. 

Currently, Hong Kong is re-branding itself as the hub of the Pearl River Delta Region. This marks an important attitude shift in Hong Kong, from “separatist" to “integrationist". 

I found that there is both a sophisticated understanding of and significant focus on social cohesion. This was evident in my meetings with officials such as Ava Ng, Deputy Director of Planning, who said public response to the new plan for Victoria Harbour was influential in its development.

Hong Kong is not a democracy in our sense of the word, but public opinion matters. It is a free and open society and complaints are voiced.

Infrastructure capacity is formidable and plans for new investment are huge. For example, 25,000 new housing units are built each year.

In Hong Kong, a strong China-Canada connection is evident, not only through the 200,000 Hong Kong residents with Canadian passports, but in terms of education and trade links. 

My trip was not only filled with learning opportunities, it was made especially enjoyable thanks to the extraordinary efforts of everyone I met, from the many public officials to my Hong Kong hosts and those who planned the logistics. Both my husband, who accompanied me, and I will long treasure the memories of a very special trip to a fabulous city. And, bonus, great shopping!

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