Hong Kong a 'super-connector' for investors seeking to enter China, envoy Sun Haiyan says
Strong government coordination and policy stability in China, which helps to prevent "the occurrence of social ills common in modern societies", is one of the reasons why the mainland is an attractive destination for investors, said Beijing's envoy to Singapore on Thursday.
Sun Haiyan said issues like social division or protests driven by development imbalance, which was prevalent in other countries, could be avoided with the presence of strong leadership and government.
"A strong government also guarantees rapid roll-out of nationwide infrastructure projects, including 5G base stations and cloud infrastructure. It is also in the best position to lead and promote regional development strategies," she said in a pre-recorded video addressing the audience at the Post's China Conference: Southeast Asia.
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One example of this, she said, was the Eastern Data Western Computing project, an ambitious nationwide plan to construct data centres and computing network architecture.
The project was "being turned into reality", she said, and was achieved through national coordination, close inter-provincial consultation and favourable policies to woo businesses to pitch in.
Sun said that Hong Kong was an important entry point for those looking to enter China, describing the city as a "super-connector", and the Greater Bay Area, a "super centre".
She added that while China's economy had "encountered problems of different sorts" in recent years, its "unique features are one major reason why it survives and thrives".
The coordination within the Chinese government and strong leadership had provided a "high degree of stability in Chinese markets", making China one of the world's strongest economies today, she said.
"Of course, reforms will lead to some policy adjustments, but it's fair to say that policy stability in China still exceeds most countries," Sun added.
Beijing had imposed sweeping crackdowns on sectors such as technology, gaming and private tutoring in recent years, which led to billions of dollars in market values being wiped off and dampening investor sentiment.
But in order to better understand China's economy, she advised those with plans to enter the Chinese market to read through the country's five-year plan reports and annual growth targets.
Her speech came at the start of the second day of the Post's conference in Singapore, where topics like Hong Kong's vitality as a financial hub were in focus.
Sun is currently in Hainan province with Singapore Prime Minister Lee Hsien Loong for the Boao Forum for Asia, which began on Tuesday.
In a welcome address, the Post's editor-in-chief Tammy Tam said she was optimistic that Hong Kong would continue to play an "indispensable role in the success of the region" and expected its ties with Southeast Asia to deepen in the coming years.
The city's early admission to the Regional Comprehensive Economic Partnership (RCEP), the world's largest free-trade deal with 15 countries, was one of the main reasons why, Tam said. "That means, Hong Kong's ties with the region will only deepen and the story of our city is very much tied to that of Southeast Asia."
Similarly, Sun said Hong Kong remained a "super-connector" for investors seeking to enter the Chinese market. "Hong Kong has long been an international trade, shipping and financial centre," she said, adding that it had established close links with Southeast Asia.
With the Greater Bay Area "on track to become a world-class bay area and city cluster", she added Hong Kong had developed its strengths in areas like hi-tech, industrial chains and talent.
This article originally appeared on the South China Morning Post (SCMP).
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