The economic integration between Hong Kong and Shenzhen has
become a heated topic for the media and commentators as forums were
held and reports were released in August and September.
At the same time, the people of Hong Kong, especially the
business community, were paying extra attention to another issue -
how the processing industry owned by Hong Kong people in the Pearl
River Delta area in Guangdong Province would cope with the new
policy on restricting the processing trade announced by the
Ministry of Commerce on July 23.
These two issues seem unrelated. The discussion on economic
integration of Hong Kong and Shenzhen is about the future
development of the two regions. The new trade policy concerns the
huge investment by Hong Kong businesses in the Pearl River Delta
area in the past decades. There has not been any publication so far
that associates the two.
But a further analysis shows that the two are quite related.
Had there not been the large-scale migration of the
manufacturing industry from Hong Kong to the Pearl River area, the
topic of economic integration of Hong Kong and Shenzhen would not
have arisen today. The "front shop, back factory" industrial
division pattern between Hong Kong and the Pearl River Delta areas
that was formed during the 1980s and 1990s is just sectoral
integration from the viewpoint of regional economic
integration.
Market forces have closely connected the two regions, and the
economic fate of Hong Kong with that of the whole country. Thus the
economic integration of Hong Kong and the mainland, especially the
Pearl River Delta area in Guangdong, has become an irreversible and
irresistible trend.
Now Hong Kong-based manufacturers who have their processing
factories in Guangdong have to seek business opportunities in
inland areas, which shows the reliance of Hong Kong's economy on
the national economy is developing to a deeper and broader level.
This, in essence, also coincides with Hong Kong's expanding
economic integration with Shenzhen.
The connection between Hong Kong and Guangdong through the past
decades means that Hong Kong must link itself more closely with the
mainland.
To enable Hong Kong to share the country's economic development
opportunities as early as possible, economic integration between
Hong Kong and Shenzhen should precede.
Regional economic integration in the international arena always
faces various difficulties and problems. Under the current
institutional system of "one country, two systems", the economic
integration between Hong Kong and the mainland is like an
international regional economic integration in various aspects, and
therefore, will face difficulties and complications as well.
Geographically, Shenzhen is connected to Hong Kong and is close
to Hong Kong in economic and social development levels. It has
always taken the lead in the country's reform and opening up. Thus
it will face relatively fewer difficulties and obstacles in
developing integration between the two first. Such integration will
benefit Hong Kong, Shenzhen, as well as the whole country.
It would be a short-sighted view to ignore or oppose economic
integration between Hong Kong and Shenzhen just because Hong Kong
businesspeople and their processing factories in the Pearl River
Delta area may have to move further away from Shenzhen.
Both Hong Kong and Shenzhen should consider economic integration
from the viewpoint of whether it can benefit their development.
There should not be any zero sum game introduced to the integration
process. At the same time, both Hong Kong and Shenzhen should
consider the integration from the viewpoint of whether it will
benefit both sides.
The central government has played a coordinating role in the
economic integration between Hong Kong and Shenzhen as well as the
Guangdong Province. This is the special advantage that regional
economic integration in the international arena does not have.
The central government has granted special favors to the Hong
Kong Special Administrative Region. Take the list of processed
goods subject to export limits published on July 23 for example.
Under the new policy, enterprises are required to have guarantee
deposits in the Bank of China while registering their trade
contracts of enlisted products. This did increase the capital
burden of related Hong Kong-based businesses. But the use of the
letter of guarantee allowed in the paying methods published on
September 5 is really a move to ease the burden of Hong Kong
businesses.
So the Hong Kong community is taking an open and positive
attitude toward its economic integration with the mainland, and
economic integration with Shenzhen first.
(China Daily October 18, 2007)