Can Hong Kong Overcome Complacency?

By Dan Steinbock

In the past, so the legend goes, Hong Kong feared nothing. Today, the city seems frozen by its obstacles. Can it change, once more?

In a recent commentary, I argued that, in the absence of a radical new growth strategy, Hong Kong is facing an eclipse. In a response, “Hong Kong’s strength lies in China’s weakness,” Jake Van Der Kamp argues that Hong Kong’s ageing population is not a major challenge; that the industrial base of the Chinese province of Guangdong is relatively low-tech; and as a result, further integration with it would not enhance Hong Kong’s growth prospects.

I beg to disagree on all three counts; big time. In each case, facts are pretty clear. In the past, Hong Kong benefited from China’s vulnerabilities. In the future, it must find a way to complement China’s strengths.

 
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