The SAR's leaders describe Hong Kong's current economic weakness as the inevitable pain of transition. However, to imagine that transition, assuming full implementation of the authorities' development plan, will lead to a complete transformation and a resurgence of the Hong Kong economy, is both wishful thinking and a desperate gamble. If not handled properly, Hong Kong will stumble onto a wrong path and decline.
Faced with a recession, the SAR authorities should have quickly restored a system of freedom and human rights, fostered a favorable business environment, and sought to retain talent and foreign investors, thereby maintaining Hong Kong's status as an international financial and trade center. However, the reality is quite the opposite: harsh laws remain in place, increasingly aligning with mainland China's system, and the National Security Law has become a daily deterrent in Hong Kong.
The authorities' confidence stems from their pinning their hopes on the future: reshaping Hong Kong's economic model through close integration with the mainland. First, large-scale regional development will boost the economy, including the Metropolitan Plan in the northern border region, bringing together talent, businesses, and R&D capabilities from both sides. Second, mainland and Hong Kong R&D and business collaboration will promote investment in innovation and technology, seeking breakthroughs in cutting-edge fields and supporting the development of high-value-added enterprises, thus elevating Hong Kong's economy to a new level dominated by Beijing. If successful, Hong Kong will not only turn crisis into opportunity, but its prosperity will be driven solely by Beijing, eliminating the need to rely on a legal system similar to that of Europe and the United States to win the favor of foreign investors.
