Hong Kong unveils its first five-year development plan through 2030
Hong Kong authorities in China have unveiled their first five-year economic and social development plan through 2030. The document provides for a significant increase in investment in innovation and technology and for aligning the financial center’s development with the goals of mainland China, Asharq Al-Awsat reports.
Research and development target
Hong Kong leader John Lee presented the plan on Wednesday. According to the official document, after 2030 the city aims to raise the share of research and development to 3% of gross domestic product. In 2024, this figure stood at 1.63% of GDP.
China has identified scientific and technological self-reliance as one of its priorities and is investing heavily, including in semiconductors and artificial intelligence, to reduce its dependence on the United States. The Communist Party of China has used five-year plans to set development targets and social priorities since the 1950s.
Preserving the capitalist system
John Lee said the five-year plan does not mean Hong Kong will transition to a planned economy and is intended to preserve the city’s capitalist system. Hong Kong was a British colony until 1997 and now has the status of a special administrative region of China, with economic and trade rules that differ from those of mainland China.
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Former official and legislator Christine Loh believes the document will become a useful tool for long-term strategic planning. Dylan Loh, an associate professor at Nanyang Technological University in Singapore, said the initiative’s main goal is to synchronize Hong Kong with China’s national five-year plan, released in March.
Technology hub at the border
The plan is also intended to accelerate the development of the Northern Metropolis, a large-scale technology hub near the border with mainland China. The project was first proposed in 2021; it is expected to eventually cover one-third of Hong Kong’s territory. Critics and local residents have raised concerns about the project’s potential environmental impact and the burden on public finances.
Political scientist Eilo Yu, who studies the development of Hong Kong and Macau, noted that the program reflects a course toward deeper integration of Hong Kong’s system with China’s development. He also linked this approach to the development of the Northern Metropolis and Hengqin Island, located near Macau.
