F5 Citizenship and Social Development - Topic 2 Notes

A. Development of the Greater Bay Area

• March 2017: Premier Li Keqiang proposed the Greater Bay Area development plan.
• February 2019: The Central Committee of the CPC and the State Council defined the Greater Bay Area as consisting of "9+2" cities (9 municipalities and 2 special administrative regions).
• Goal: To develop an international first-class bay area for living, working, and traveling.
• 2020: The Greater Bay Area had a population of 86.17 million and a regional GDP of US$1,668.8$ billion.
• Bay areas are city clusters around ports and towns with coordinated functions and efficient resource allocation.
• Famous Bay Areas: New York, San Francisco, and Tokyo.
  • New York: Financial industry (New York Stock Exchange, NASDAQ).
  • San Francisco: Innovation and technology (Silicon Valley).
  • Tokyo: High-end manufacturing (steel, automobile, electronics).

1. The Overall Goal of the Greater Bay Area

• To lead in finance, technology, and innovation.
• To coordinate development and ensure complementary functions among cities.
• To promote opening-up and cooperation with the Belt and Road Initiative.
• To pursue green development and ecological conservation.
• To support Hong Kong's integration into national development.

2. Development Positioning of Cities

• Hong Kong: Most international city with a business-friendly environment and free economy.
• Macao: Tourism and gambling industries, a commerce and trade cooperation platform with Lusophone countries.
• Guangzhou: A modern and internationalized business environment, a global metropolis.
• Shenzhen: A special economic zone, a hub for high-tech research and manufacturing, an innovation and creativity capital.

3. Major Infrastructure Related to Hong Kong

• Developing an international innovation and technology (I&T) hub.
  • The Guangzhou-Shenzhen-Hong Kong-Macao I&T corridor.
  • Developing a Greater Bay Area big data center.
  • Improving innovation capacity and integrating industry and academia.
• Developing quality innovation and technology platforms.
  • Hong Kong Science Park, Hong Kong Cyberport, and the Lok Ma Chau Loop.
• Improving the environment for innovation in the region.
  • Allowing eligible I&T enterprises to secure listings in Hong Kong.
  • Strengthening cooperation in intellectual property (IP) protection.

3.2. Expediting Infrastructural Connectivity

• Building a modern transport network.
  • The "12312" travel traffic circle.
  • 2-hour traffic to East, West, and North Guangdong.
  • 1-hour traffic circle with Hong Kong, Shenzhen, Guangzhou, Foshan, and Macao as cores.
  • 3-hour traffic to major cities in China and Southeast Asia.
  • 12-hour traffic to major cities in the world from the Pearl River Delta region.
• Key transport infrastructure:
  • Guangzhou-Shenzhen-Hong Kong Express Rail Link.
  • Hong Kong-Zhuhai-Macao Bridge.
  • Shenzhen-Hong Kong Boundary Crossing.
• Developing the Northern Metropolis in Hong Kong to strengthen transport infrastructure with Shenzhen.

3.3 Building a Globally Competitive Modern Industrial System

• Developing advanced manufacturing and strategic emerging industries.
• Hong Kong to expand the Innovation and Technology Bureau into the Innovation, Technology and Industry Bureau.
• Leveraging scientific research resources in Hong Kong, Macao, Guangzhou, and Shenzhen.
• Developing an international financial hub.
  • Hong Kong to leverage its leading position in financial services.
• Developing the marine economy.
  • Hong Kong as a maritime logistics transit point.

3.4 Taking Forward Ecological Conservation

• Achieving carbon neutrality by 2060.
• Reducing carbon emissions and improving environmental compliance.
• Developing green finance.

3.5 Developing a Quality Living Circle

• Developing education and talent hubs.
  • Building a "Greater Bay Area University."
• Building a bay area for leisure with diverse tourism.
• Jointly developing a cultured bay area.

3.6 Jointly Participating in the Belt and Road Initiative

• Creating a globally competitive business environment.
• Promoting market integration and expanding opening-up.

4. Development Opportunities for HK in the Greater Bay Area

• Promoting diversified development and coordinating development opportunities.

4.1 Promoting Diversified Development

• Consolidating established advantages in finance and other service sectors.
  • Developing a platform for investment and financing.
  • Developing into the largest global wealth management center.
  • Consolidating the status as the offshore RMB business hub.
  • Accelerating Fintech development.

Developing Emerging Industries

• Focus on establishing the Greater Bay Area as an international I&T hub.
• Constructing a modern logistics system.
  • Developing cold chain logistics and high value-added third-party logistics.
  • Developing high-end maritime services.

4.2 Providing More Development and Living Space

• Expanding the scope for employment and entrepreneurship.
• Measures supporting youth entrepreneurship in Guangzhou, Hong Kong, and Shenzhen.
• Measures benefiting the general public and supporting professional services.

4.3 Developing a Quality Living Circle

• Emphasizing ecological conservation and promoting green development.
• Providing quality services with smart management.

B. The Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)

• Enhances economic cooperation and integration between the Mainland and Hong Kong.

1 Background: Process of Cooperation Between Hong Kong and the Mainland (1978-2003)

• "Front shop, back plant" model (1978-1992): Hong Kong SMEs invested in primary production in Guangdong and Fujian.
• Relocation of manufacturing industry to the Mainland (1992-2003): Large enterprises moved industrial chains to the Mainland.

2 Basic Contents of CEPA

• Enhances economic cooperation and integration.
• Adopts a building block approach to reduce tariffs and non-tariff barriers.

2.1 Trade in Goods

• All goods of Hong Kong origin can enjoy zero tariff upon importation into the Mainland.

2.2 Trade in Services

• The Mainland and Hong Kong have basically achieved liberalization of trade in services.
• Mutual recognition of professional qualifications.

2.3 Investment

• Hong Kong investors can enjoy investment protection and facility in the Mainland.

2.4 Economic and Technical Cooperation

• Strengthens cooperation between the two places.

3 The Benefits of CEPA to the Mainland and Hong Kong

- CEPA is a win-win agreement, promoting stable development and mutually beneficial cooperation.