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Opinion | Why Hong Kong-mainland data transfer pact is beacon of hope in darkening digital world
- As global politics drift towards a more fractured world order, countries and cities are scrambling to sustain stability while erecting barriers
- By tapping into Hong Kong’s global market access, the data transfer agreement can pilot China into the future with Hong Kong at the helm
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While growing mistrust among jurisdictions threaten to choke data flows and stall progress, a new agreement between Hong Kong and mainland China now offers a glimmer of hope for greater connectivity.
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The memorandum of understanding that Hong Kong and the mainland signed on June 29 enables data to flow among the Greater Bay Area cities. The impact of the agreement far outstrips its modest name, tapping into open data flows and digital exchange at a time when much of the world is pulling up drawbridges.
Beneath the fanfare lies a seismic shift with widespread implications. Hong Kong operates under the “one country, two systems” principle as a separate jurisdiction from the mainland, which means data transfers from the mainland to Hong Kong were handled as an international exchange. Now the digital gates have swung open.
For some, this pact is just window dressing. Hong Kong is well on its way to recovering from the damage of the Covid-19 pandemic – economic activity has picked up and the city’s unemployment rate is steadily falling. These indicators merit closer scrutiny, though.
It is a mistake to view today’s green shoots of recovery through rose-tinted glasses. The outlook seems bright when put up against the low base induced by the pandemic. A swift turnaround is enabled by expedient policy and public funds, but these cannot fully paper over the cracks.
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A facade of normalcy has returned, but vulnerabilities still lie exposed. An economy reliant on visitors from afar will always be one shock away from trouble, lacking momentum to chart a more resilient course. The scars of the pandemic serve as a warning to diversify or be left adrift by the next crisis.
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