The 25th Anniversary of China's Return

This year marks the 25th anniversary of the return of Hong Kong.

This is not only a day of every five and a ten, but also the mid-term of the "50 years of unchanged" stipulated by the Basic Law of Hong Kong that came into effect 25 years ago.

Although "50 years" is a philosophical concept and does not refer to 50 years in the numerical sense, the return to 25 years still has a certain node significance.

In the 25 years since returning, there have been some hotly debated issues.

On the 25th anniversary of Hong Kong's return to the motherland, it is both necessary and urgent to reconsider these issues of great significance to the practice of "One Country, Two Systems" in Hong Kong.

In this regard, "Hong Kong 01" interviewed Cao Erbao, an adjunct professor at the Shenzhen International Graduate School of Tsinghua University, who was the head of the Research Department of the Liaison Office of the Central People's Government in Hong Kong.

The following is the second one.

Chapter 1: The

25th Anniversary of the Return

Hong Kong 01: Since the return of Hong Kong 25 years ago, Hong Kong's share of GDP in the whole of China has continued to decline, and it has been overtaken by Shanghai, Beijing, Shenzhen and Guangzhou one after another, so that some voices say that the importance of Hong Kong or its strategic value to China is declining. .

During your permanent residence in Hong Kong on business, you also participated in the practice of "one country, two systems" after Hong Kong's return to the motherland. You retired to the mainland and continued to promote cooperation between the two places. How do you view this phenomenon? What is the strategic value of Hong Kong to China?

Cao

Erbao: This is a good question. Since I returned to the mainland from Hong Kong, whenever the two places cooperate in research or are invited to give lectures on Hong Kong, people keep asking them.

It is Xi Jinping's "July 1st" speech in Hong Kong (hereinafter referred to as "July 1st speech"), which is the first time to use the term "long-term" without a time limit, and Xunzi's famous saying 2000 years ago, "Do not stop, the future can be expected", to express Since the firm national will of "one country, two systems", "there is no reason to change, it must be persisted for a long time" and "Hong Kong will keep the original capitalist system unchanged for a long time", the mainland, Hong Kong and overseas public opinion fields are still citing Hong Kong's GDP and its country The proportion and other data show that Hong Kong has long been “not as good as it used to be” and no longer has strategic value to China.

They do not understand why Xi Jinping's "July 1 speech" declared two "long-term": "One country, two systems" must be "persistent for a long time", and Hong Kong's capitalist system will remain unchanged for a long time.

In fact, Xi Jinping's "July 1 speech" has already answered this question, which is the third "long-term" he proposed to synchronize with the two "long-term": "The central government fully supports Hong Kong's long-term maintenance of unique status and advantages".

In addition to the three traditional advantages (international finance, shipping, and trade center, the same below), he especially mentioned these three advantages: "business environment", "common law system", "International Links".

Talk about three points of learning experience.

One or two "smaller", more "unchangeable"

As you said, in the 25 years since Hong Kong's return to the motherland, there has been a phenomenon that has attracted the attention of public opinion in Hong Kong, overseas and mainland China. That is, Hong Kong's GDP was surpassed by Guangdong Province as early as 1998, the year following its return to the motherland. ; In less than 10 years since 2010, it has been surpassed by four mainland "first-tier cities", namely Beijing (2010), Shanghai (2013), Shenzhen (2018) and Guangzhou (2019); "14th Five-Year Plan" During this period, it may be surpassed by at least 14 mainland "second-tier" provinces and cities.

The country's share of Hong Kong's GDP has fallen from 16.8% in 1996 to less than 2% at present.

These are rigid data, and people inevitably question whether Hong Kong still has strategic value to the country.

Reviewing Deng Xiaoping's classic expositions and learning Xi Jinping's "July 1 speech" for the first time cleared up such doubts.

As early as the early 1980s, at the beginning of the country's reform and opening up and when the country decided to take back Hong Kong as scheduled, Deng Xiaoping predicted: "Hong Kong will contribute a little in the construction of the four modernizations. It is possible to contribute even less in the future, but we don't want it to be small." ; Fifty years later, "Hong Kong's share of the country's economy is even smaller".

He also pointed out the reasons for Hong Kong's "smaller contribution" and "smaller proportion of economic countries" (referred to as "two smaller"): "China's roots are in the mainland", "it is not in Hong Kong", "China's construction cannot be Relying on "unification", it mainly relies on self-reliance, and relies on the foundation of the mainland. Of course, we must open up to the outside world and attract foreign investment, but mainly rely on self-reliance." Deng Xiaoping believed that "Hong Kong cannot continue to maintain prosperity", "there will be To a large extent, it will affect China's construction. This estimate is incorrect. If China puts the realization of the four modernizations in Hong Kong's prosperity, then the decision itself is incorrect." Based on this, he proposed "after the reunification of the mainland The principle of not extending a hand to Hong Kong has resulted in the Hong Kong Basic Law stipulating that the SAR's fiscal revenue should be "used entirely for its own needs" and not be turned over to the central government and that the central government will not levy taxes in the SAR (Article 106).

In the 25 years since Hong Kong’s return to the motherland, the data cited above shows that its economic aggregate has been surpassed by mainland cities or provinces and the country’s share has fallen sharply, which confirms Deng Xiaoping’s prediction.

When he made this prediction, he did not waver, but strengthened his famous declaration and promise: "There is no need to change"; "Fifty years later, when the mainland develops, it will still be petty at that time. Dealing with these issues? So don't worry about changing, you can't."

What Deng Xiaoping declared and promised here is "unchangeable", which is what he calls "one country, two systems" which "cannot be changed in the first fifty years, and will not need to be changed after fifty years." "This "good system" is the "original capitalist system in Hong Kong" that Deng Xiaoping called "a hundred years" unchanged, and Xi Jinping's "July 1 speech" called "long-term unchanged"!

It is worth noting that while making the "two smaller" predictions and declaring and promising that they "can't change", Deng Xiaoping profoundly pointed out that these declarations and commitments are both "solemn" and "grounded".

"Solemnity" means "talk counts" and "speak faith". Deng Xiaoping said this is the "tradition" of the "Chinese nation" and the new "Chinese government and the Central Committee of the Communist Party of China"; it is the "demeanor" and "dignity" of a "great country" and "Guidelines".

"It's justified" means that "this is not just rhetoric," Deng Xiaoping said, "but considering that Hong Kong's prosperity and stability are closely related to China's development strategy." How can you change the policy towards Hong Kong?”

The 25th Anniversary of the Return of the People's Republic of China︱Cao Erbao: The Inseparability of Sovereignty and Power is a Very Important Experience and Lessons of the 25th Anniversary of the Return of the People's Republic of China

In the 25 years since Hong Kong's return to the motherland, Xi Jinping's "July 1 speech" called it "the miracle of long-term, stable and rapid economic development of the motherland." He praised Hong Kong for creating this miracle for the motherland and making an "irreplaceable contribution".

These contributions and their irreplaceability are concentrated in the "14th Five-Year Plan" and the eleven positions assigned to Hong Kong by the country before.

Among them, in addition to the three traditional advantages that existed before the return to the motherland, the eight new positions were formed during the 25 years of Hong Kong's implementation of "one country, two systems" and "maintaining Hong Kong's original capitalist system" after its return to the motherland. .

The eight new positions of National Fu Hong Kong are: International Asset Management Center (“12th Five-Year Plan” Fu Hong Kong, March 2011), Global Offshore RMB Business Hub, Asia-Pacific International Legal and Dispute Resolution Service Center (“13th Five-Year Plan” above). Five" Fu Hong Kong, March 2016), International Aviation Hub, International Innovation and Technology Center, Sino-foreign Cultural and Art Exchange Center, Regional Intellectual Property Trade Center, International Risk Management Center (the above "14th Five-Year Plan" Fu Hong Kong, March 2021 ).

These eight countries have given Hong Kong a new position, which is the brightest highlight of the 25-year successful implementation of "One Country, Two Systems" in Hong Kong. It is also the basis for Deng Xiaoping's prediction that Hong Kong's "two smaller" will be "unchangeable", that is, "Hong Kong's prosperity and Stability is closely related to China's development strategy", the most telling proof.

2. One in and one out, challenging opportunities

In the 25 years since Hong Kong's return to the motherland, the country has undergone two major changes, affecting Hong Kong's overall functional status.

The first major change is the so-called "entry": China joined the WTO in December 2001, four and a half years after Hong Kong's return.

China has changed from being open to the world to a two-way open to the world; the world has changed from being only open to Hong Kong and Macau to be fully open to the Chinese mainland.

The 20 years since joining the WTO are the 20 years when Xi Jinping said in his "July 1 speech" that "the motherland created an economic miracle": China's economic aggregate has grown by double digits for a long time, and its GDP ranking has reached the second place in the world.

However, in terms of the proportion of the country, Hong Kong's economy is much smaller than the mainland provinces or capital cities, and it is a fraction of the country's overall economic volume. Its many indicators are ranked in the country and even in the world. Slipping is normal and inevitable.

The second major change is the so-called "export": in 2014, the output of national capital and technology exceeded the input for the first time, and the construction of the "Belt and Road" (referred to as "The Belt and Road") of China's export of production capacity and technology started with the trend, when Hong Kong returned 17 years ago.

China has changed from a receiving country of capital and technology to an exporting country; China's economy has also changed from "bringing in" to build the domestic market and "going out" to open up overseas markets at the same time. Circular" transformation.

Hong Kong has four "unique advantages" that are "incomparable and incomparable to cities in the world and the mainland", namely "location advantage", "first-mover advantage of open cooperation", "service industry specialization advantage", "cultural context" Inherited Humanistic Advantages” (Hong Kong’s First Belt and Road Summit, State Leader’s Speech, May 18, 2016), participates in and assists the country in promoting the “Belt and Road” construction, and quietly enhances itself in the “national economic development and opening up”. function and status” (Decision of the Fifth Plenary Session of the Eighteenth Central Committee, November 2015).

These two major changes are both challenges and opportunities for Hong Kong's overall functional status.

The "international shipping center" of Hong Kong's traditional advantages is the best illustration.

Before China's accession to the WTO, the global containers (referred to as "containers" in ports) to and from China could only be loaded and unloaded in Hong Kong, and entered and exited the Chinese mainland via land and water; via Hong Kong.

I remember that in 2005, I visited Shanghai Yangshan Port, which had been built and was in trial operation at that time, and learned that its water depth was 40 meters, while Hong Kong’s No. 9 and 10, which supported the world’s No. 1-2 container throughput, had a water depth of only 18 meters. Mi, I realized that the container volume of Yangshan Port will sooner or later surpass that of Hong Kong.

Sure enough, since 2016, Hong Kong’s container throughput has been surpassed by mainland ports such as Shanghai Yangshan, Zhejiang Ningbo, Shenzhen Yantian and other foreign ports such as Singapore and Vietnam; the world ranking has also dropped from the 1st to 2nd place year by year to the current The 10th place will continue to decline.

One of Hong Kong's three traditional advantages, the "International Shipping Center", is facing challenges.

This is the Shanghai Yangshan Port Container Terminal (drone photo) taken on March 18, 2020.

(Xinhua News Agency)

As China's capital and technology output exceeds its input, the "Belt and Road" construction that started with the trend has given Hong Kong an opportunity for this traditional advantage.

For example, in China's promotion of the "Belt and Road" construction, Hong Kong is an "important maritime gateway for the country's opening-up pattern" and "located on the world's busiest international shipping route". The "location advantage" that the port is difficult to compare and replace.

According to the latest ranking of international shipping centers released by international authoritative organizations based on the "Comprehensive Urban Strength", Hong Kong is still the fourth in the world.

Hong Kong's status as an international shipping center in the world is even more so than all the ports in mainland China or foreign countries that have left it far behind in terms of container volume, including Singapore, London, Shanghai, etc. Irreplaceable.

For example, Hong Kong owns or manages 1/10 of the world's merchant fleet; it has gathered more than 800 shipping-related service companies in the world; it is the largest international ship financing center in Asia; it is also the fourth largest ship registry in the world, and so on.

This is the Kwai Chung Pier in Hong Kong (photo taken on February 5, 2016).

(Xinhua News Agency)

3. World-class, best in China

This is a little revelation from Xi Jinping's "July 1 speech" for beginners.

When talking about "the need to maintain Hong Kong's unique status and advantages", he specifically mentioned that Hong Kong should "maintain a free, open and regulated business environment, maintain the common law system, and expand smooth and convenient international connections."

Among them, "common law system" belongs to "business environment"; "international connection" is "internationalization".

First, Hong Kong's business environment is world-class.

In this regard, Xi Jinping's "July 1 speech" even used two top-level compliments: Hong Kong's "freedom and openness ranks first in the world, and the business environment is world-class."

It vividly and accurately depicts Hong Kong's traditional advantage as an "international trade center". After 25 years of return to the country, it has successfully practiced the baptism of "One Country, Two Systems".

There are three main aspects:

(1) The common law system permeates the global operation field of the West.

Judicial verdicts accumulated over hundreds of years are laws that are followed by common law courts around the world.

This makes it possible to accurately predict the business environment, reduce investment and financing mistakes, and avoid legal risks in uncertain activities such as human economy and finance.

This is the profound consideration of Xi Jinping's "July 1 speech" saying that "the central government fully supports" Hong Kong's "maintaining the common law system".

Hong Kong High Court.

(Photo by Lu Yiming)

Hong Kong can appoint foreign judges in accordance with the law, which is an important difference between the common law system and the civil law system: the judges of the former are not limited by nationality.

When Chinese investors encounter legal disputes overseas, when both parties are reluctant to file lawsuits in the other country, they mostly choose common law courts.

As the only region in China where common law is applicable, the "13th Five-Year Plan" has determined that Hong Kong is the "International Legal and Dispute Resolution Service Center in the Asia-Pacific Region".

Even during the "turbulence of the amendments", the global reputation of Hong Kong's litigation and arbitration system has not diminished or increased: Hong Kong's court adjudication level is still ranked third in the world (below London and Paris; Paris applies European law, and Hong Kong, where common law applies, is still ranked third in the world). 2); Hong Kong ranks among the top five preferred arbitration venues in the world (below Singapore and London, and above Paris and Geneva).

(2) Languages ​​are widely used in various high-end formats around the world.

English is no longer a "colonial culture", but a common language for high-end business such as international finance, economics, trade, law, medicine and science; English is used for summit meetings, high-end exchanges and professional negotiations involving trade secrets (without translation); global science and medicine and other fields The innovative ideas or leading achievements of the book were first published in international authoritative English periodicals or literature; the popularity of English in Hong Kong is higher than that in Asian countries or regions.

After Hong Kong's return to the motherland, Chinese and English were listed as the "official languages". In addition to the rapid popularity of Putonghua, "biliteracy and trilingualism" (Chinese and English, Putonghua, English and Cantonese) is the unique language endowment of Hong Kong people.

This enables Hong Kong to understand and judge the business environment around the world, which has obvious advantages.

(3) Intellectual industry trade leads Asia.

"Regional Intellectual Property Trade Center" is a new position given to Hong Kong during the "14th Five-Year Plan".

The level of intellectual property protection in Hong Kong is close to that of the European Union, the highest level in the West, and surpasses that of Singapore.

As a party to several international intellectual property agreements, Hong Kong's intellectual property trade leads Asia.

Hong Kong's status as an international financial center and a simple tax system provide intellectual property creators, i.e. market entities or entrepreneurs, with much-needed financing resources and tax relief services for intellectual property trade, especially at the start-up stage.

Hong Kong is the preferred business base for 9,000 companies from all over the world, facilitating the free entry, exit and operation of global market players in accordance with the law.

Second, the internationalization of Hong Kong is the highest in China.

Hong Kong currently has a population of about 600,000 foreigners, accounting for about 8.6% of the total population; 350,000 European citizens and 85,000 American citizens; 125 foreign consulates or internationally recognized institutions: 62 consulates general, 57 honorary There are 172 visa-free countries and regions in the world for Hong Kong passports, more than other visa-free regions in China; there are more than 3,600 headquarters or offices of global multinational companies in Hong Kong: about 2,300 EU companies in Hong Kong , are global headquarters; 1,300 US companies in Hong Kong (800 cover major US financial companies), 283 are global headquarters, and 442 are regional headquarters or offices.

The United States, the United Kingdom and the European Union have their largest overseas chambers of commerce in Hong Kong, and so on.

Chinese compatriots in Hong Kong who have obtained foreign nationality, as long as they do not apply for a change of nationality, are still Chinese citizens but are not protected by foreign consulates in China (about 5-6 million). The passports they hold are regarded as travel documents by the country and the Hong Kong Special Administrative Region rather than proof of nationality ; Mainland Chinese compatriots cannot have both foreign and Chinese nationality.

The Anti-Foreign Sanctions Law, a national law involving foreign companies in China, is not implemented in the Hong Kong SAR.

When Deng Xiaoping created the scientific concept of "One Country, Two Systems", he noticed the characteristics of Hong Kong's population composition and the most international market players, and clearly instructed: "China must maintain Hong Kong's status as a free port and an international financial center, and it will not affect the foreigners' presence there. Investment, under this premise, is managed by Hong Kong, including foreigners in Hong Kong.” He also instructed: “Hong Kong people themselves form the government, whether Chinese, British or other people can participate, and they can be government employees. Even becoming a member of the Hong Kong government can be considered.” In his famous speech that “Hong Kong people with patriots as the main body must govern Hong Kong”, Deng Xiaoping pointed out in particular: “The future The main component of the Hong Kong SAR government is patriots, of course, it also accommodates other people, and can also hire foreigners as consultants.” It is in the spirit of Deng Xiaoping’s instructions that the “Hong Kong permanent residents” defined by the Hong Kong Basic Law are “Hong Kong residents”. The only concept of "Hong Kong people" qualified to "govern Hong Kong" includes "non-Chinese nationals and their children" who have "ordinarily resided" in Hong Kong for seven years.

In the 25 years since the return of Hong Kong, the three political organs of the SAR have a small or small proportion of foreigners or foreigners, such as the Department of Justice of the Government, the Police Force, the Legislative Council functional constituencies and the courts, etc. The government and the Legislative Council must be composed of "Hong Kong people" , Most of them are Chinese citizens, but some of them have the right of abode in foreign countries; not necessarily all "Hong Kong people" who make up the courts, and no nationality restrictions; except for the principal officials, the President of the Legislative Council, the Chief Justice, etc., they must be among "Hong Kong people" In addition to the positions held by Chinese citizens who do not have the right of abode in a foreign country, foreign or foreign nationals among the "Hong Kong people" and Chinese citizens with the right of abode in foreign countries can hold positions at all levels in the three political organs.

There are also foreign or foreigners among the officials of the Hong Kong Special Administrative Region participating as members of the Chinese delegation in international organizations or international conferences based on countries.

Third, Hong Kong's simple tax system and livable conditions are among the best in the world.

Hong Kong’s tax system is simple and attracts the attention of global entrepreneurs: there are only three direct taxes (property tax, profits tax and personal salaries tax), with low tax rates and high tax exemptions.

For example, personal salaries tax and property tax in Hong Kong are both 15%; profits tax is paid in two levels: the first 2 million Hong Kong dollars is 8.25% or 7.5%, the rest is 16.5% or 15%, while Singapore's profits tax is 17%; Hong Kong does not levy Sales Tax, Excise Tax, Value Added Tax, Dividend Tax, Inheritance Tax and Offshore Activity Profits Tax etc.

Hong Kong's livability also ranks among the top in the world.

Such as low crime rate, high crime detection rate (one of the safest cities in the world), the world's first medical service efficiency (global score 87.3) and the highest life expectancy (male 82.9 years old, female 87.95 years old), and so on.

Hong Kong is known as the "Port of Nuremberg".

Not only because New York, London, and Hong Kong have long ranked among the top three international financial centers, but Hong Kong ranks third, mainly because the top three international megacities are the top three cities in the world, and Hong Kong ranks third for a long time.

In fact, developed economies such as "Port of Nuremberg" have never listed GDP as an economic development goal; the grading of "world cities" has never been based on GDP but business environment and internationalization.

And these two evaluation criteria are precisely the two "unique positions and advantages" that Hong Kong has maintained for a long time: "a free, open and regulated business environment" and "smooth" Easy international connections".

To sum up, the strategic value of Hong Kong to the country is what Deng Xiaoping said under the "two preconditions" of "one country" and the mainland, that is, the main body of the country, or "the highest principle of 'one country, two systems'" as Xi Jinping said. "Under this premise," the country's sovereignty, security and development interests will maintain the original capitalist system for a long time.

The measure of the strategic value of Hong Kong is not the GDP and its national proportion, but the standard of "world city" classification: business environment and internationalization.

As pointed out in Xi Jinping's "July 1 speech", Hong Kong "plays an important role in building a new pattern of my country's wider, wider and deeper opening to the outside world." In particular, he pointed out that Hong Kong still needs to "continue to maintain its advantages of being highly free and open, and to integrate smoothly with international rules."

Among them, "highly free and open" means that Hong Kong's business environment is world-class, and "smooth connection with international rules" means that Hong Kong's internationalization is the best in China.

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