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“One Country, Two Systems”

When Hong Kong once again became part of China, it created the opportunity and necessity to integrate two economic systems: That of British - Hong Kong and that of the Pearl River Delta belonging to the Chinese republic. How this integration is progressing can be read in a recently completed 256-page report by The 2022 Foundation.

The Foundation reports a remarkable growth since the union. This growth has been spurred by a cooperative movement between Hong Kong and the Pearl River Delta – marked by the slogan of “one country, two systems.” The Pearl River Delta has a history of manufacturing and supporting industries that work in conjunction with Hong Kong’s management, logistics and finance industries. Through continued development of transportation, communication and China’s entry into the WTO, this relationship has been strengthened. More importantly perhaps, competition within this mutually beneficial partnership has increased and could serve as the vital condition for future success.
Two barriers that this region faces are in the areas of poor transportation between cities and government regulation of exports. These problems are addressed by the report but do not seem to outweigh the positive signs in this region. Hong Kong and the Pearl River Delta form the most trade -oriented area in China. Cooperation between Hong Kong’s private business sector and the Chinese government is increasing and the region as a whole is developing and strengthening the local market, increasing investment capital and improving the workforce through the sharing of tacit knowledge and education. Through the support of non-profit groups like The 2022 Foundation, Hong Kong and the Pearl River Delta are using a cluster based approach to ensure the future competitiveness of the region.

You can access the full report and summary at 2022 Foundation

TCI would like to thank member Professor Michael Enright for providing us with news about the report.