評論文章

【Can Hong Kong afford to jump on the mainland Chinese tech bandwagon?】

President Xi Jinping’s recent criticism of local governments for blindly pursuing hot industries like artificial intelligence and new energy vehicles should serve as a wake-up call for Hong Kong. The warning highlights the risk of “involution” or vicious competition, especially if Hong Kong simply takes “industrial diversification” to mean following mainland trends.

In recent years, Hong Kong has promoted innovation and technology, yet a closer examination reveals a concerning sameness. Although the Northern Metropolis and Cyberport appear to focus on diverse areas – life sciences, microelectronics, Web3 – they often mirror similar innovation corridors on the mainland.

Xi’s question – of whether all provinces in the country have to develop the same few industries – might also be asked of Hong Kong.

Given that Hong Kong is spending a lower share of its gross domestic product on R&D and that these resources are spread across multiple fields, the city is less likely to achieve breakthroughs in these areas. In the meantime, as mainland provinces strengthen their industrial chains, Hong Kong’s role as a connector may diminish.

The Central Urban Work Conference Xi presided over also proposed improving the efficiency of existing capacity and assessing debt risk, ideas that could apply to Hong Kong.

For instance, the long waits for public housing highlight the need to optimise existing resources and deploy idle sites, instead of relying only on new developments. And why should the city continue to pursue large-scale projects like Lantau reclamation, despite declining fiscal reserves?

In the face of the central government’s warning to local governments, Hong Kong should refine its positioning as an innovation hub. In crowded fields like new energy vehicles and artificial intelligence, Hong Kong has unique opportunities to differentiate itself from the mainland. For example, the city can leverage its strengths in green finance to connect with Southeast Asian carbon markets and leverage AI large language models in Chinese and English to run regulatory compliance processes.

For Hong Kong, the real breakthrough may lie in leveraging its common law system. For instance, instead of building more data centres, Hong Kong could take the lead in maintaining a white list for Greater Bay Area data flow. Instead of subsidising chip research and development, Hong Kong should press its advantage in international mediation and become a hub for hi-tech patent dispute resolution.

Read more:  https://www.scmp.com/opinion/letters/article/3320474/can-hong-kong-afford-jump-mainland-chinese-tech-bandwagon?module=top_story&pgtype=subsection