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RESOURCE CENTER

Press Release

Press Conference on 2010 China Urban Cities Competitiveness Study (Hong Kong)

2010.04.07

Organizer
The Better Hong Kong Foundation

Co-organizers
Center for City and Competitiveness, The Chinese Academy of Social Sciences
Hong Kong Institute of Asia-Pacific Studies, The Chinese University of Hong Kong

(27 April 2010, Hong Kong) The Press Conference of 2010 China Urban Competitiveness Report (Hong Kong) is held in Hong Kong on 27 April 2010. It is organized by The Better Hong Kong Foundation and co-organized by Center for City and Competitiveness*, The Chinese Academy of Social Sciences and Hong Kong Institute of Asia-Pacific Studies, The Chinese University of Hong Kong. “The 2010 China Urban Competitiveness Report” project is led by Prof. Pengfei Ni in The Chinese Academy of Social Sciences. The urban competitiveness of 294 cities in mainland China, Taiwan, Hong Kong and Macau in 2009 is analyzed.

1) Urban Competitiveness Ranking

The top 10 cities in overall urban competitiveness are: Hong Kong, Shenzhen, Shanghai, Beijing, Taipei, Guangzhou, Tianjin, Kaohsiung, Dalian and Qingdao. Hong Kong is also ranked the 1st in the scale competitiveness, economic efficiency, industrial competitiveness and income competitiveness. Comparing with previous year, Hong Kong moved from the 2nd position to the top position in the scale competitiveness, economic efficiency and industrial competitiveness while income competitiveness remained at the top position. Hong Kong is ranked 4th in the development cost competitiveness, down from the top position in previous year. Comparing with rapidly growing cities in the mainland, Hong Kong is ranked 289th in the growth competitiveness, down from 288th in previous year.

2) Hong Kong’s Urban Competitiveness

Hong Kong has been ranked the top in urban competitiveness among Chinese cities for five years since 2005. Hong Kong has absolute advantage in overall urban competitiveness. Although there has been rapid urban development in Beijing, Shanghai and Shenzhen in recent years, they cannot overtake Hong Kong in the near future.

Hong Kong has a large and mature economy. Its growth competitiveness is far behind other cities. But Hong Kong still has stable growth.

Hong Kong’s advantage in scale competitiveness is being weakened. The gap between Shanghai and Hong Kong has been narrowed in the past 5 years. It was 0.26, 0.20, 0.17, 0.13 and 0.09 respectively.

Hong Kong’s economic efficiency is much higher than other cities in the mainland. Mainland cities can learn a lot from Hong Kong. Their development model should be changed from the one based on expansive growth using cheap labour to the one based on quality endogenous growth.

Development cost competitiveness refers to the consumption of resources and environmental pollution in the process of urban development. Hong Kong has a relative advantage in this indicator in the past five years. But it has been weakened clearly.

Service sector dominates Hong Kong’s economy. The share of high-tech industry is small. The pace of industrial upgrading is slow. Hong Kong leads other cities in industrial competitiveness tentatively. But its gap with Beijing and Shanghai has been narrowed.

Hong Kong has relatively high household income and public revenue. Residents have good living conditions and high quality of life, provided with excellent public facilities. Hong Kong has high income competitiveness.

3) Strategic Measures on Future Urban Development in Hong Kong

A global city strategy. Hong Kong leads other economies in the world in areas of financial services, trade freedom, legal system and business management. As a leading city in the world, Hong Kong should aim to become a world class city in global city competition. It should facilitate economic development in Asia, regional economic integration in China and leading the integration of PRD metropolitan region with the world.

Coordinating national planning, re-positioning Hong Kong. With globalization and rapid urbanization in China, various central and local governments should adjust the urban system plan in greater China, taking Hong Kong, Macao and Taiwan into consideration. Hong Kong should be included in the 12th FYP, endorsing the planning of Hong Kong as a world class city. Hong Kong also needs to make its own long term strategic plan.

Improving industrial structure, leading key industries. HKSAR government should make clear and effective industrial development strategy and policy. The government should foster a good environment, attract and support the development of key high-tech manufacturing and knowledge-intensive service sectors.

Promoting the linkage of software, speeding up the direct link of hardware. To become a global city, Hong Kong needs to speed up integration with the mainland especially PRD. Promoting software integration and extending CEPA, gradually achieve the free flow of people, goods, services, currency, capital, technology and information; free exchange between RMB and HK dollar; “co-location” inspection. Promoting hardware integration. Hong Kong should be included in the planning, construction and operation of national infrastructure to achieve seamless direct link.

Developing education hub, improving living environment. Developing a high quality life-long education system in Hong Kong. Raising the participation rate of higher education to foster creative skills. Cooperating with the mainland closely to control urban and regional environmental pollution and create a quality living environment.

Enhancing science and technology, developing knowledge economy. Hong Kong should become a global innovation center. HKSAR government should make a strategy of building an innovative city to support the basic and applied research of science and technology. Create good business environment so that endogenous innovation can become a key driver of economic transformation and the development of knowledge economy.

4) Remarks on the Result of Urban Competitiveness Study

Prof. Yue-man Yeung from The Chinese University of Hong Kong and Prof. Jianfa Shen from Hong Kong Institute of Asia-Pacific Studies of the same university commented on the result of urban competitiveness study in the press conference.

Prof. Yue-man Yeung pointed out first that, as the eighth annual report on the competitiveness of Chinese cities, the focus of this year’s report is “the linked fortune of cities and countries” in their competitiveness. This is a rational conceptual angle through which to examine the competitiveness of Chinese cities and the growing economic power of China. This report has uncovered no surprises in the competitiveness of Chinese cities. What is noteworthy is that the gap between Hong Kong and other Chinese cities in their relative competitiveness has been narrowed over the past five years. While Hong Kong’s advantages are still strong and unique among Chinese cities, they must be further strengthened and reinvented for a more enhanced role of Hong Kong to play in the future global economy with China likely to figure more prominently. Chapter 10 of the report examines Hong Kong’s competitiveness. It revealed the comparative advantages of Hong Kong relative to China, Asia and indeed the world. What is most important for us is to seriously consider the future strategic position of Hong Kong as a global city beyond its present world city status. It is envisaged that Hong Kong can be developed as the leading city in Asia, overtaking Tokyo, and will join London and New York as the three most global financial centers.

Prof. Jianfa Shen pointed out that Hong Kong has been ranked the most competitive city in China for five years by the “China Urban Competitiveness Report”. The study team in the Chinese University of Hong Kong designed a comprehensive urban competitiveness index (UCI) which consists of four components: economic performance, global linkage, social well-being and environmental quality. It is used to analyze the changes of Hong Kong’ UCI since 1990. The index ranges from 0 to 100. They find that Hong Kong’s UCI was the lowest in 1992 and the highest in 2008. During 1990-2001, the UCI was rising slightly with fluctuation. It reached low values in 1992, 1997 and 2001 respectively. Poor economic performance contributed to low UCI values in 1992 and 2001. Poor environmental quality contributed to low UCI values in 1992 and 1997. Poor social well-being contributed to low UCI values in 1997 and 2001. UCI rose steadily after 2003 with significant improvement in all four components. Among the four components, the most robust was the steady expansion of the global linkage in the period. The economic performance and social well-being fluctuated greatly around 1997, reaching the bottom in 2000 and 1997 respectively. The environmental quality was the best in 1998-2002 when the economy was stagnant. It has been improved from the bottom in 2004. To improve Hong Kong’s urban competitiveness, the government and society need to take both economic, social and environmental measures.

Concluding the press conference, Ms. Karen Tang, Executive Director of the Better Hong Kong Foundation commented that “As a global city, Hong Kong will develop into a world class metropolis in the future. Hong Kong will grow by capitalizing the opportunities in the mainland China and beyond. It will also provide advanced services to Asian and the world. It will be the place hosting the headquarters of transnational corporations from Asia and the world. Hence, to realise the recommendations of improving the living environment, developing Hong Kong as an education hub, providing an effective industrial development strategy, being included in the 12th FYP as a world–class city in China, cooperating and coordinating with the Mainland cities, etc are the key to keeping Hong Kong as the forerunner in the globe.”

For enquiries, please contact Ms Jimmie Chow, Communications Manager of the Foundation at Tel: (852) 2865 3529 / 6030 6025 or email: jimmie_chow@betterhongkong.org.

* “The China Urban Competitiveness Report” is originally one of projects under Institute of Finance and Trade Economics of the Chinese Academy of Social Sciences. After years of effort made by Prof. Pengfei Ni, the Academy set up the Center for City and Competitiveness of which Prof. Ni is appointed as Director. The opening ceremony of the Center was held at the press conference of the Report in Beijing yesterday.

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