Win-win cooperation with mainland vital: HK official

Video by courtesy of Economic Herald

Normal exchanges between Hong Kong and the mainland were hindered for three years due to the pandemic. Has Hong Kong's status and international influence weakened? In the new wave of reform and opening up, how can Hong Kong and the mainland achieve mutual benefit and win-win results? How can mainland talents integrate into Hong Kong? How to enhance the national identity of Hong Kong's youths? Ding Shizhao, president of Shenzhen News Group and president of Hong Kong-based Economic Herald, yesterday led a team of journalists to interview Chan Kwok-ki, Hong Kong’s chief secretary for administration, conducting an in-depth interview on various issues of public concern.

Ding Shizhao (L), president of Shenzhen News Group and president of Hong Kong-based Economic Herald, interviews Chan Kwok-ki, Hong Kong's chief secretary for administration, yesterday. Courtesy of Economic Herald

Hong Kong's economy continues to improve

Economic Herald: Since the normalization of the Shenzhen-Hong Kong border crossing in February this year, we have noticed a phenomenon where many Hong Kong people travel to Shenzhen for shopping on weekends and holidays or order "cross-border deliveries." How do you view this new trend of consumption between Shenzhen and Hong Kong?

Chan: I think it's quite normal; the mainland is a popular tourist destination for Hong Kong. If I have time, I would also visit the mainland for tourism.

Herald: Only with more frequent exchanges will both places become more vibrant and better. This requires an open-minded attitude.

Chan: Exactly. In fact, there has been a significant increase in mainland visitors to Hong Kong as well. The number of visitors from the mainland in the first half of this year reached 13 million. The phrase "complementary advantages, mutual benefit, and win-win cooperation" summarizes the relationship between Hong Kong and the mainland. Different mainland cities have their own attractiveness, and Hong Kong also has its appeal to the mainland. "Two-way consumption" benefits both sides.

We have a positive economic forecast for Hong Kong. This year, it is experiencing positive growth, with an estimated annual increase of 3.5% to 5.5%. I am very confident about the future, and everything will improve.

Strengthening cooperation 

Herald: Hong Kong, backed by the motherland and connecting with the world, is undoubtedly a "super connector." After the lifting of pandemic control measures, Hong Kong has become a hot spot for the mainland to attract international investment. How do you evaluate this?

Chan: Hong Kong has moved from chaos to stability and is now mainly focused on economic development and improving people's livelihoods. To integrate into the overall national development, we must engage with different provinces and cities on the mainland. We welcome them to come to Hong Kong, and we also visit them, hoping to seek cooperation.

Herald: In March, the Economic Herald published a series of reports on mainland cities and companies seeking investment in Hong Kong. 

Chan: That's very accurate!

Herald: Various investment-seeking activities are being held here, and that's the charm of Hong Kong, the "Pearl of the Orient." And this is what everyone wants to see.

Chan: Hong Kong has the advantage of "one country, two systems."

Herald: This is Hong Kong's biggest advantage. This advantage, combined with Hong Kong's economic size, international status, and economic strengths, can greatly benefit the national economic development.

Chan: We should complement each other's advantages. For example, Hong Kong's universities excel in research, but some results cannot be commercialized and need the mainland's market. Cooperation is beneficial to everyone. We need to leverage Hong Kong's unique advantages. When Hong Kong thrives, the country thrives; when the country thrives, Hong Kong will be better off.

Global talents have favorable views on Hong Kong

Herald: Hong Kong's unemployment rate is 2.9% this year, which is equivalent to full employment. Therefore, the SAR Government has launched a series of policies to introduce talents. But there are different voices among the public, concerned about whether it will affect local employment. How do you think we can make everyone understand and support these policies? How can the introduced talents live and work better?

Chan: In recent years, Hong Kong's labor force has shown a decline. The labor force was 3.68 million in 2018 and decreased year by year to 3.46 million in 2022. Among the 220,000 decrease, 160,000 were grassroots workers. The main reason is the low birth rate in Hong Kong. Therefore, we need to moderately introduce labor.

Regarding talent, Chief Executive John Lee proposed to woo enterprises and talents in his policy address last year. We have actively approached international companies, hoping they will settle or expand investments in Hong Kong. In the past six months, we have contacted over 150 companies.

Herald: In the past, the market decides almost everything, and the government didn't intervene much, focusing on creating a favorable environment. Now the "visible hand" is taking action.

Chan: Yes, we need to take the initiative to approach them, not just wait for them to come, and we can even invest in their companies. This is the latest change.

After companies come in, we need to address the talent and labor shortages. Therefore, we have relaxed the standards for the import of talents, among measures including the "Talent List" program. The goal set by the chief executive is to have no less than 35,000 people applying to work in Hong Kong in one year. In the past six months, over 100,000 people have applied, proving that mainland and global talents have confidence in Hong Kong.

How do we solve the labor shortage? Firstly, by importing labor, we will import 7,000 elderly care workers, 20,000 workers in the construction and transportation sectors, totaling 27,000 people. Based on these numbers, I don't believe it will affect the employment of local labor force. Moreover, we are doing a lot of work to train local workers. This training is free and the trainees are also subsidized by the government, with subsidies increased from HK$5,800 to HK$8,000 per month. Additionally, we provide housing benefits.

Encouraging HK youths to go north

Herald: Chief Executive John Lee and you have firmly supported and encouraged Hong Kong's youths to start businesses and work on the mainland, integrate into the Greater Bay Area and participate in mainland development. In March of this year, the SAR Government launched the normalized "Greater Bay Area Youth Employment Scheme," and in June, it restarted the "Mainland and Overseas Summer Internship Program for Hong Kong University Students." What is the significance and impact of these programs? How is the progress so far?

Chan: The youths are the backbone of future development. Some young people lack understanding of their country, lack a sense of national pride, and lack a sense of national identity. Therefore, we need to do a lot of work to make them love the country and Hong Kong. This is an important aspect of maintaining Hong Kong's national security.

At the end of last year, the SAR Government released the first version of the Youth Development Blueprint, which includes 160 practical measures and actions in various aspects such as education, employment, entrepreneurship, and housing for the youths. At the same time, we are strengthening national education. High school students must visit the mainland at least once, sponsored by the government, with an annual quota of 100,000.

We have the Greater Bay Area Youth Employment Program. If mainland companies recruit Hong Kong youths, the government provides a subsidy of HK$10,000 per month to the companies, totaling HK$180,000 over 18 months.

There is also the Greater Bay Area Youth Entrepreneurship Support Program. Last year, we provided a subsidy of HK$130 million, and many young people started their businesses in mainland cities such as Shenzhen, Dongguan, Huizhou, and Guangzhou.