Political situation
Author: Zheng Baosheng
2020-10-31 18:22
Last update date: 2020-10-31 18:22
The Fifth Plenary Session of the 19th Central Committee of the Communist Party of China concluded on the 29th. The May Politburo meeting put forward the "formation of a new development pattern based on the domestic cycle and the mutual promotion of the domestic and international dual cycles", which has become the key to development in the next five years. "Double cycles" Become the core concept of planning.
Chief Executive Carrie Lam Cheng Yuet-ngor and Financial Secretary Chen Maobo have recently put forward their views on Hong Kong people's participation in the "internal cycle."
Lam Cheng cited the increase in the value of imports and exports in September by the Census and Statistics Department on the 27th, saying that "the significant rebound in exports was mainly driven by the apparent acceleration of exports to the Mainland. This not only illustrates the close economic relationship between the two places, but also reminds us to actively participate. The "internal loop" of the country is promising for Hong Kong businessmen.
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Chen Maobo said on a radio program on the 31st that Hong Kong has advantages in medicine and artificial intelligence (AI) scientific research and can cooperate with other cities in the region to deduct into China's domestic circular economy.
One is talking about entrances and exits, and the other is about participating in the development of the Mainland. Which one is the real "inner loop"?
To understand the positioning of the people of Hong Kong in the "dual cycle" development pattern, it is necessary to understand what an "inner cycle" and an "outer cycle" are.
As early as the two sessions in May, Xi Jinping mentioned the "double cycle" in the CPPCC meeting, and there was an important sentence in his speech: "We must take the satisfaction of domestic demand as the starting point and end of development."
In this way, the purpose of "internal circulation" is to promote domestic demand. The starting point means "research and production for the purpose of satisfying domestic demand", and the end point can be interpreted as "the layout of industry for the purpose of satisfying domestic demand."
It can be seen from this that Chen Maobo's statement that Hong Kong's scientific research can participate in the development of the Greater Bay Area itself is a development strategy of joining the "internal loop".
During the interview, he revealed that the government is discussing with Shenzhen to set up a Hong Kong-Shenzhen Innovation and Technology Park on land near the Lok Ma Chau Loop. It is expected to be built in 2022 at the earliest, and innovation and technology companies will be introduced after completion.
This is precisely to promote the cooperation between Hong Kong's innovation and technology industry and mainland enterprises, and is in line with the goal of the Fifth Plenary Session of the Central Committee of the Communist Party of China to "take technological self-reliance and self-reliance as a strategic support for national development.
If R&D and production are based on internal demand, it is in line with what Xi Jinping said "to meet domestic demand as the starting point and end of development."
The "internal cycle" proposed in the "14th Five-Year Plan" is actually an extension of the "supply-side structural reforms" and the "new urbanization construction" proposed in the "13th Five-Year Plan". , But if you want to join from the production and sales levels, you must pay more attention to the development trend of the mainland retail sales network.
In 2019, the value of Hong Kong's imports from China reached 2,058.1 billion yuan, and the value of exports to China was 1,936.5 billion yuan, making Hong Kong an important trading partner.
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The "outer circulation" is foreign trade.
Promoting the "internal loop" of Mainland R&D, Mainland production, and Mainland sales does not mean locking the country.
Xi Jinping mentioned that "domestic and international dual cycles promote each other," which shows that foreign trade, the "external cycle," also plays a certain role.
As the Sino-US conflict is heating up, Hong Kong's role has become even more important in order to promote the "outer circulation."
The Fifth Plenary Session of the Central Committee mentioned "implementing a high-level opening to the outside world" and also pointed out that "relying on the advantages of my country's large market, promoting international cooperation, and achieving mutual benefit and win-win results."
In other words, it is necessary to promote trade and introduce foreign products with the inland cities as the destination.
Hong Kong's imports and exports to the mainland and the world are huge
Hong Kong has always played an important role in trade.
Judging from the 2019 data before the outbreak of the new crown pneumonia epidemic, of the incoming cargo at the port of Hong Kong, 106.4 million metric tons of imported goods, of which 64.5 million metric tons are inward transshipment cargo.
In terms of containers, Hong Kong handled a total of 5.45 million TEUs of outbound transshipment containers in 2019.
In 2019, the value of Hong Kong's imports from China reached 2,058.1 billion yuan, and the value of exports to China was 1,936.5 billion yuan. Both are the second largest trade volume after the Asia-Pacific Economic Cooperation (APEC), showing the huge scale.
Trade is an "outer circle", not an "inner circle".
As Xi Jinping said "take the domestic cycle as the main body", the "inner cycle" is the "protagonist" of the 14th Five-Year Plan, and the "outer cycle" plays an indispensable auxiliary role.
Hong Kong's position in international trade is an important engine for promoting the "outer circulation."
More than half of the constituent stocks of the Hang Seng Index are Chinese stocks, and Hong Kong is the main channel for mainland companies to raise funds from the world.
(Reuters)
The role of the financial center focuses on serving exports, and financing is the pillar
In addition, the "external circulation" should include invisible trade, which in Hong Kong is the provision of financial services to China and the rest of the world.
In 2019, the export value of insurance and pension services in Hong Kong was 11.6 billion yuan, and the export value of financial services was 167.4 billion yuan.
More importantly, Hong Kong is an international financial center. Global investors trade in Hong Kong. More than half of the constituent stocks of the HSI are Chinese stocks.
In 2019, Hong Kong's securities trading volume reached 21,390 billion yuan, and the total market value was 38,058.3 billion yuan.
In the context of the withdrawal of Chinese companies from the US market, Hong Kong is the main channel for mainland companies to raise funds from the world.
In this context, Hong Kong's financial services industry is not only a member of the "outer circle", but also an important location for assisting mainland enterprises in international financing to develop their industries. It has the effect of helping promote the "inner circle".
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