How Hong Kong can be a key pillar for belt and road infrastructure
Lawrence J. Lau says Hong Kong, with its financial expertise and sophisticated legal system, is uniquely placed to contribute to and gain from the belt and road plan, especially with relation to infrastructure projects
It seeks to stimulate and create sustainable trade and investment exchanges where none existed, through enhanced connectivity, thus benefiting – and accelerating economic development for – each country along the belt and road.
It can give new momentum to the world economy, which has seen growth stalled since 2008 due to insufficient aggregate demand. And economic development will in turn foster peace, security and harmony among the belt and road nations.
What role can Hong Kong play in this wide-ranging plan? The initiative will include Asean, where Hong Kong traditionally has strong ties. One terminus of the belt and road is Europe, and Hong Kong – with its long history of close economic relations with the continent – can also help to involve European businesses in the initiative.
Under “one country, two systems”, Hong Kong has the advantages of not only complete capital mobility, full currency convertibility, a stable exchange rate and low taxes, but also ready access to the huge market, the excess savings pool, and the support of the governmental institutions, in mainland China. Thus, Hong Kong is ideal as a centre for financing belt and road infrastructure projects.
