ReginaIpsaysHKisideallypositionedtotakeadvantageofthestrategicproject,whichunderscoresaworldwideshiftfromWestern-driventoChinese-drivengrowth
ThesuccessfulconclusionoftheBeltandRoadForumforInternationalCooperationinBeijinginthemiddleofthismonthsignalsthecommencementofanewphaseintheimplementationofthisambitiousproject.Becauseofitsmagnitude,itslaunchbyPresidentXiJinpinginlate2013wasgreetedwithcertainamountofdoubtandskepticismaboutitssustainabilityinsomequarters.
Threeandhalfyearslater,thelargenumbersofheadsofstate,governmentleadersandheadsofinternationalorganizationswhoflockedtoBeijingtoattendtheforumtestifiedtothebroadappealoftheinitiativetotheinternationalcommunity.Foreignmediaandthinktanksaroundtheworldarebuzzingwithanalysesofthestatementsmadeandagreementsreachedattheforum,andevaluationsoftheachievements.TheBeltandRoadInitiativehasnodoubtcapturedthecenterstageofglobalattention.Thereasonsarenothardtounderstand.
ForChina,theBeltandRoadInitiativeisanaturalextensionofthedrivetodevelopthenorthwesternpartofthecountry,whichcommencedattheturnofthecentury.Afterthreedecadesofhigh-speedgrowthspearheadedbythespecialeconomiczonesinthesouthandthecoastalprovincesandcities,itisonlynaturalforChinatostrivetoclosethewideeconomicgapbetweentheprosperouscoastalregionsandthemuchpoorernorthwesterninterior.Asthenationgathersstrengthinitsinfrastructuredevelopmentcapacityandfacesanincreasingneedtorelocateitsindustriesowingtorisingcosts,environmentaldegradationandnaturalresourcedepletion,ithasreachedastagewhereexportingitsexcesscapitalandcapacitytoitsneighborsandlinkingChinawithEuropeviaAsiaandAfricamakeeminenteconomicsense.Overtime,thestimulustothedevelopmentofneighboringeconomieswouldspurgrowth,whichwouldinturnhelppropelChina'seconomyforward.
China'soutwarddriveatthispointintimeisparticularlyimportantandwelcomebyneighboringdevelopingeconomiesbecauseglobalgrowthislosingspeedandbalance.AsBrexitandtheriseofprotectionismandanti-immigration,nationalistpoliticiansintheWestdemonstrate,afterseveraldecadesoftradeandinvestmentliberalizationundertheaegisoftheWorldTradeOrganization,globalizationhaspeakedandisfacingabacklashofprotectionism.Freetradehasbeenblamedforengenderingthewideincomeinequalityandthestagnationofmiddle-classincomesintheWest.AstheUnitedStatesscuttledtheTrans-PacificPartnership,thefreetradedriveofformerpresidentBarakObama,developingcountriesarerelievedandgratifiedthatChinaistakingtheleadinfurtheringtradeandinvestmentliberalization.Whereastheglobalizationdriveinthepost-waryearshasbeenfrom"theWesttotherest",inthewordsofthelateSamuelHuntington,thistime,theglobalizationdriveradiatesfromAsia-fromChinatotheWest.
Fordevelopingcountries,whetherinSoutheastorCentralAsiaorAfrica,China'sfinancialsupportforinfrastructuraldevelopmentcannotbetimelier.Itishardforimpoverishedregionstogrowwithoutpowersupply,roads,railroads,energyinfrastructureandinformationbackbones.ThefundingprovidedbytheAsianInfrastructureInvestmentBankandtheSilkRoadFundprovidesthewelcomewherewithaltojumpstartconstructionoftheseessentialfacilities.
FordevelopedcountriesintheWestexperiencinganemicgrowth,thelikelyjumpinaggregatedemandfromdevelopingcountriesforrawmaterials,commoditiesandinduecoursefinishedproductscannotbutspellgoodnewsforfirmslanguishingforwantofbusiness.ThegiganticKeynesianstimulusprovidedbyChina'sBeltandRoadcannotoccuratamoreopportunetime,whentheworldfacesthespecterofslowgrowthcausedbycreditcrunchandprotectionism.
Forthefinancialcommunity,evenwithChina'slargess,thefundinggapforfinancingthemassiveinfrastructuralneedsofthedevelopingworldissogreatthatnosinglestatecanbankrolltheenterprise.Otherwealthiernationsneedtojumpin;andmyriadfinancialinstitutionsneedtojoinforceswithstatebankstokeepthedevelopmentgoing.
Induecourse,theinfrastructure-leddevelopmentwillspawndemandforservices-fromsecurityandprotectiontolegal,professionalandbusinessservices-creatingopportunitiesfordiverseprofessionsandenterprisestopartakeofthegrowth.
HongKongiswellpositionedtocontributetothefinancingofthismassivedevelopmentalproject.Asawell-establishedinternationalfinancialcenterwithstrongruleoflawandadvancedprofessionalandbusinessservices,itiswellqualifiedtoprovideaplatformfordevelopingmultiplechannelsforfunding.Itsfinancialcommunitywillbenefitfromthefurtherinternationalizationoftheyuanandalltheassociatedyuanandtreasurybusiness.TheenhancedlinkstoMuslimcountriesalongtheBeltandRoadwouldenableHongKongtoexpanditsIslamicfinancebusiness,apartfromdevelopingnewfinancialproductstomeetthefinancingneeds.
StrategicallylocatedalongChina'shistoricMaritimeSilkRoad,HongKongiswellpositionedtobenefitfromincreasesintradeandinvestmentwithAssociationofSoutheastAsianNations(ASEAN)countries.HongKongisalsowellpositionedtobeanimportanthubintheinformationsuperhighwaylinkingBeltandRoadcountries.ChinahasalreadyestablishedgoodinformationandcommunicationlinkswithASEANnationsthroughtheChina-ASEANinformationharborinGuangxi.WithexcellentdatacenterfacilitiesinHongKong,HongKongshouldstrivetobeakeypartoftheinformationecosystemoftheBeltandRoad,leveragingtheexpandingnetworkstoupgradeitsuseoftheinternet,andtakeitscross-bordertrade,logistics,tourismandfinancetonewlevels.