East Asia
Why is Hong Kong so important to China—power, profits or prestige?

[yt_dropcap type=”square” font=”” size=”14″ color=”#000″ background=”#fff” ] S [/yt_dropcap]ince the handover of Hong Kong from British rule back to China in 1997, the central government in Beijing has granted the city the special status in terms of the “special administrative region” (HKSAR). According to the principle of “One country, two systems” that was initiated in the 1980s by the late Chinese leader Deng Xiao-ping, Hong Kong was allowed to “enjoy a high degree of autonomy, except in foreign and defense affairs” for the next 50 years.
This means HKSAR has its own legal system, multiple political parties and its mini-constitution to enshrine the basic civil rights in terms of the democratic procedures of the West. Considering the stark contrasts between the mainland China and Hong Kong in the 1980s, this is truly an innovative idea and daring practice. Otherwise, the unconditional handover of Hong Kong back to China would not be so smooth and the governing of the former colony by Beijing would not be so successful. Here the question arises why Hong Kong is so important to China which has been seen as a rising power with an ambition likely to end the hegemony of the United States?
Frankly speaking, now Hong Kong has become one of highly competitive global trading and financial hubs primarily during the past two decades. As a former British colony, it had laid down the sound legal and financial systems, yet all its current economic, technological and social weights have been resulted in China’s reform & openness initiated in the 1980s. As former U. S. Consulate General Burton Levin said in 1994, “Under British ruling for 155 years, Hong Kong had enjoyed full freedom of speech and religions but never democracy.” Especially to the people of China, Hong Kong is more than a colony but a bitter memory of “the century shame of the ancient country”.
Yet, in 1949 when the People’s Republic of China was founded, the government in Beijing did not retake Hong Kong back immediately. Even during the cold war, Britain was the first major power of the West recognizing the P.R.C. as the legitimate government of China in 1950 and posted a chargé d’affaires ad interim in Beijing from 1954 until 1972 when China accords full recognition to HMG, permitting the exchange of ambassadors. Considering the severe sanctions imposed by the United States against China of that time, Chinese Premier Zhou En-lai not only facilitated the Sino-British trade committee as semi-official trade body (later merged with the Group of 48), but also made HK as the key “window” to the outside world. Under the circumstances, Hong Kong did serve as a channel to help China obtaining various technologies, economic items and foreign currencies, which were so invaluable to China for it was eager to develop but was isolated by the US-led Coordinating Committee for Export to Communist Countries. The hidden role of Hong Kong as a “window” was not finished until 1972 when the Sino-United States’ rapprochement was made in light of the realpolitique of the world affairs.
When China started the reform and openness in the late 1970s, Hong Kong had also changed impressively in terms of garments industries, public housing program and general living standard. For sure, this rapid industrialization was driven by textile exports, low-cost manufacturing items and re-exports of good to China. In addition, efforts were made during the 1970s—1980s with the view to improving the public services, environment, social welfare and infrastructure, which in turn laid the foundation for Hong Kong to establish itself as the first of the “four Asian tiger economies”. Due to this, Hong Kong naturally came to be the vital gateway for mainland China to draw relatively competitive manufacturing know-how, financial management, and foreign direct investment into the economic areas in southern China which were opened up to foreign businesses. This is not one-way benefit since Hong Kong needed to transfer its low-skilled and massive-labor industries to China. Under the win-win formula, Hong Kong has developed itself as a global financial center along with London and New York city, a regional hub for logistics and freight, one of the fastest-growing economies in Asia and the exemplar of laissez-faire market policy globally.
However, in retrospective, people in Hong Kong and the British public as well have always reviewed the past two decades with obvious ambiguous sentiments. Back then in 1997, cosmopolitan and glittering HK city served as China’s gateway to its future dream and many believed it would stay that way for years to come. Fast forward 20 years, it is no longer the only jewel in China’s crown, with cities such as Shanghai, Shenzhen and Guangzhou becoming financial and technological innovative powerhouses. As HK politician Martin Lee observed, “I couldn’t have thought that China’s economy would develop so quickly … and Hong Kong’s bargaining power would diminish so fast.”
Would Hong Kong remain China’s golden goose in the next decades? The answer seems to be given by Chinese President Xi Jinping on June 30 during his three-day visit to Hong Kong for the historic anniversary of the handover of HK from British rule back to China in 1997. In a brief speech at the airport, Xi reaffirmed that Beijing’s central government “has always been a patron of Hong Kong, and will as always support HK’s economic development and improvement of people’s welfare.” Looking forward into the next 30 years, he promised that Beijing was to work with all sectors of Hong Kong’s society in maintaining its extraordinary achievements of the past decades and would ensure “one country, two systems” moving forward in light of social stability in Hong Kong.
No doubts, Hong Kong will act as the key player in China’s century project of “the Belt and Road Initiative”. The reasons behind are as follows, since its return to China, Hong Kong has kept its distinct features and strengths, including its vibrant metropolis where the East meets the West remains as strong as ever. For example, Hong Kong’s leverages are its knowledge of finance management, global trade and technologies innovativeness, the Guangdong-Hong Kong-Macao Greater Bay Area, Renminbi internationalization and other major development strategies, which are all important to “the Belt and Road Initiative”. As China has entered the final stage to realize its national goal as a global power, development is both the top priority and an abiding pursuit. As a result, it is crucial not only for Hong Kong’s survival but also provides an invaluable opportunity and an inexhaustible source of strengths and broad space for it to address prominent economic and livelihood issues that people are concerned with. To that end, the new Chief Executive Carrie Lam Cheng Yuet-ngor vowed that HKSAR takes all necessary measures to enforce the principle of “one country, two systems”.
Pragmatically speaking, as the Chinese Government Work Report in 2016 explicitly stated, Hong Kong and Macao are expected to play their roles in China’s economic development and especially in “the Belt and Road Initiative”. Thus, the framework agreement on closer cooperation between the Chinese mainland, Hong Kong and Macao aims to draw up a development plan for a city cluster in the Pearl River Delta that gives full play to the distinctive strengths of each side. Or simply put it, with relatively higher market sophistication, the advantage of “one country, two systems”, and competitiveness in building up clusters of production and industries, the economic aggregate of the Greater Bay Area in the Pearl River Delta is poised to exceed the bay area of Tokyo to become the world’s largest economic cluster area by 2025.
In closing, despite a growing sense of local identity and even a clear anti- Chinese sentiment among the post-1997 generation, most people in HK admit that in the next 20-30 years, thing are going to change. They have the bridges between Hong Kong, Macau and the cities in China, and they have high-speed rail as well. These infrastructures will change Hong Kong and eventually the borders will become seamless. As a result, “Hong Kong will integrate more in China, whether we like it or not.” These words were confided by a HK business magnate Allen Zeman. What he said is not exaggerated, yet he still missed the point, that is, the central government in Beijing allows no one to interfere with the Hong Kong’s business and to deviate from the official line of the principle of “one country, two systems”.
East Asia
Assad’s visit to China: Breaking diplomatic isolation and rebuilding Syria

The visit of Syrian President Bashar Al-Assad to China to participate in the opening of the Asian Games came as a serious step to try to break the diplomatic isolation from Syria. Syrian President “Bashar Al-Assad” was keen to meet his counterpart Xi Jinping in the city of Hangzhou in eastern China, where the Asian Games are being held, as this was the Syrian president’s first visit to China since 2004. According to the Syrian regime’s Al-Watan newspaper, Al-Assad will attend the launch ceremony of the (nineteenth edition) of the Asian Games, which will open on September 23, in the Chinese city of Hangzhou. This visit to Bashar al-Assad reflects the great coordination between Moscow and Beijing, as it is likely that the Russians pushed for this visit at this precise time. Perhaps, through his visit to China, Bashar al-Assad is trying to deliver a specific message about the start of “international legitimization” of his regime. Syria’s accession to the Belt and Road Initiative in January 2022 is an indication of the possibility of implementing vital Chinese projects, especially since it is located between Iraq and Turkey, making it a vital corridor for land routes towards Europe.
Bashar Al-Assad’s visit to China also comes in an attempt to attract it to reconstruction projects in the affected areas in Syria, as China has the ability to complete reconstruction infrastructure in residential and civilian areas with exceptional speed. This is the same as what the Chinese ambassador to Syria “Shi Hongwei” announced in August 2023, that “Chinese companies are actively involved in reconstruction projects in Syria”. The war in Syria led to massive destruction of infrastructure and the destruction of many vital sectors of the Syrian economy, including oil, while the Syrian government is subject to harsh international sanctions. We find that the Chinese side has shown great interest in the reconstruction projects in Surba, such as the presence of more than a thousand Chinese companies to participate in (the first trade exhibition on Syrian reconstruction projects in Beijing), while they pledged investments estimated at two billion dollars.
China played an active role through diplomatic movements in Syria, as it participated in the “Astana” process, and obstructed Security Council resolutions related to Syria, to confirm its position in support of Damascus, using its veto power more than once in the Security Council, against resolutions considered to be a blow to Assad’s “legitimacy”. In September 2017, the Syrian regime classified China, along with Russia and Iran, as “friendly governments” that would give priority to reconstruction projects. Therefore, Al-Assad affirmed during his meeting with Chinese President “Xi Jinping” that: “this visit is important in terms of its timing and circumstances, as a multipolar world is being formed today that will restore balance and stability to the world, and it is the duty of all of us to seize this moment for the sake of a bright and promising future”.
According to my analysis, China follows the policy of “breaking diplomatic isolation on presidents and countries against which America is angry”, so the visit of “Bashar al-Assad” comes within a series of visits that China witnessed during the current year in 2023, to presidents who are isolated internationally by the United States of America, such as: Venezuelan President “Nicolas Maduro”, the Iranian President ”Ibrahim Raisi”, and the Belarusian “Alexander Lukashenko”.
China is also keen to conduct interviews in its newspapers and official websites affiliated with the ruling Communist Party with many presidents and officials of countries isolated internationally and diplomatically by the United States of America and the West, such as the Chinese keenness to conduct and publish an interview with Syrian Foreign Minister “Faisal Mekdad” on September 21, 2023, and the Chinese reviewed his statements, saying that “the United States of America has plundered oil, natural gas, and other resources from Syria, causing losses worth $115 billion”. The Chinese newspaper “Global Times”, which is close to the ruling Communist Party, also focused on the United States’ greater role in the deterioration of “Syria from stability to chaos” . The Chinese newspaper compared this to China’s policy, which constantly calls for peaceful dialogue and opposes “foreign interference” .
Through his visit to China, Syrian President “Bashar Al-Assad” is trying to lay the foundations for joint cooperation between China and Syria within the framework of the Belt and Road Initiative, with full Chinese support for Syria’s accession to the Shanghai Cooperation Organization as a dialogue partner. China has always affirmed its firm support for Syria’s efforts against foreign interference, with the Chinese rejection of the stationing of illegal forces on Syrian territory. China is also making great efforts with many countries to lift sanctions and the illegal economic blockade on the Syrian people, in addition to Chinese support for building Syrian capabilities in the field of combating terrorism. Knowing that despite its alliance with President “Bashar Al-Assad”, China did not participate in supporting him militarily, but it used the right of criticism to obstruct the passage of resolutions against him in the Security Council.
We can reach an important conclusion that Bashar Al-Assad’s visit to China has a greater political track, and that Beijing is trying to play a greater role in the issue of resolving conflicts or to have a greater actual role in negotiations related to sensitive issues in the region. The implications of Assad’s visit to China are also politically significant, as China is trying to play a greater political role in the region, as China has been trying since the start of the Russian-Ukrainian war and the emergence of a vacuum in the Middle East as a result of the decline of Russian influence due to its preoccupation with the war, so Beijing is trying to expand in the Middle East and Africa.
East Asia
China’s Inclusive Diplomacy for Global Cooperation

President Xi Jinping’s address at the recently held 2023 CIFTIS resonates as a powerful call for inclusive development and cooperation in the services trade sector. China’s commitment to expanding market access, increasing connectivity, and aligning policies with global standards demonstrates its commitment to ensuring a level playing field for all nations.
This commitment extends across different sectors, including telecommunications, tourism, law, vocational examinations, and the larger services sector. President Xi’s address emphasized China’s intention to expand broader, broaden market access, and support inclusive development in the services trade sector. His sentiments resonate with the global world as China seeks to create new prospects for openness, cooperation, and economic equality.
Over the last few decades, the services trade landscape has changed drastically, becoming an essential component of international business. However, this expansion has not been uniform, with developing countries frequently encountering difficulties such as limited market access, complex rules, and capacity limits that prevent them from fully participating in international services trade.
Notably, China is committed to promoting inclusive growth in the services trade sector. It assured of taking continuing steps to accelerate Chinese modernization through high-quality development, to open up new avenues for openness and collaboration for all countries.
Through openness, cooperation, innovation, and shared services, China emphasized the need for inclusive growth and connectivity. Recognizing that a rising tide in services trade should raise all boats, particularly those from nations with limited resources, China has launched a series of ground-breaking initiatives. Additionally, China is actively expanding its network of high-standard free trade areas, participating in negotiations on the negative list for trade in services and investment.
China is setting an example by aligning its policies with international standards. President Xi highlighted in his speech that national integrated demonstration zones for increased openness in the services sector, suitable pilot free trade zones, and free trade ports will be at the forefront of aligning policies with high-standard international economic and trade regulations. These zones demonstrate China’s commitment to fostering an atmosphere conducive to international cooperation and growth.
Real-world examples vividly demonstrate the practical impact of China’s assistance to developing countries in the services trade. China’s investments in transport infrastructure, such as the Standard Gauge Railway, have considerably facilitated the flow of goods and people in Kenya, boosting the services sector indirectly.
Pakistan’s experience with the China-Pakistan Economic Corridor (CPEC) is similar, with improved physical connectivity catalyzing the expansion of digital services and e-commerce. Various infrastructure developments in Indonesia have resulted in spectacular advances, opening up new potential for services trade.
Ethiopia, too, has reaped the benefits of China’s commitment, with active participation in industrial parks reviving the services sector, which includes logistics, banking, and education. These real-life success stories highlight China’s critical role in facilitating the expansion and development of services trade in developing countries.
China’s commitment to capacity building and technical aid is critical in its support for developing countries in the services trade. China provides these countries with the knowledge and skills they need to participate effectively in the services trade by offering specialized programs. Furthermore, China’s significant investments in infrastructure projects such as ports, logistical hubs, and telecommunications networks play an important role in facilitating the smooth flow of services.
Furthermore, China’s commitment to reducing entry barriers and optimizing regulations indicates the country’s persistent commitment to creating an equitable environment. This approach not only promotes equitable possibilities but also simplifies market access, making it easier for developing countries to export their services to China’s enormous and dynamic market.
Furthermore, China gives significant financial support in the form of loans and grants for service trade-related initiatives, recognizing the financial problems that many developing countries confront. This financial assistance enables nations to overcome economic challenges and invest in the expansion and improvement of their service sectors, thereby encouraging economic equality and cooperation.
As the world continues to evolve, services trade will play an increasingly important role in global economic growth, and China’s leadership in this realm is helping to shape a future where opportunities are shared, disparities are reduced, and cooperation knows no bounds. It is a vision worthy of appreciation and support since it is consistent with the ideals of justice and equality, moving the globe closer to a more linked and wealthy global community.
East Asia
China’s Multilateral Engagement and Constructive Role in the G20

The recent G20 Summit in India has once again taken center stage, attracting global attention as it gathered together leaders and delegates from the world’s 20 most powerful economies. This high-profile event was significant in shaping international relations and addressing serious global concerns due to its broad presence and crucial talks. This high-stakes gathering occurs at a pivotal juncture, marked by escalating divisions among major powers on a multitude of pressing global issues, including the Russia-Ukraine conflict, global economic recovery, food security, and climate change.
The recent inclusion of the African Union (AU) as a permanent member within the G20 serves as a positive signal, signifying consensus among major economies. However, lurking concerns persist about the formidable challenges involved in achieving unity and issuing a joint declaration in the midst of these complex global dynamics.
Chinese Premier Li Qiang’s opening remarks at the 18th G20 Summit in New Delhi resonate as he underscores the paramount importance of unity and collaboration among G20 member nations. He emphasizes the critical need for effective coordination of macroeconomic policies to restore hope and generate momentum for long-term economic growth.
Premier Li eloquently highlights the interconnectedness of humanity’s destiny and calls upon nations to demonstrate mutual respect, seek common ground while momentarily setting aside differences, and work tirelessly towards peaceful coexistence. In a world characterized by profound crises and shared hardships, he aptly observes that no nation can thrive in isolation. Therefore, the only plausible pathways for guiding humanity forward are those rooted in cooperation and harmony.
The G20, originally established to navigate global financial crises and forge collective strategies for addressing economic challenges while fostering global economic development, has, regrettably, experienced a decline in consensus and a rise in differences among major powers. This shift has been particularly evident since the onset of the Ukraine crisis and the United States’ strategy of containment against China. Consequently, the G20 is increasingly devolving into a forum marked by discord, rather than the once-productive and constructive multilateral mechanism it was intended to be.
Nevertheless, the G20 retains its significance as a pivotal forum for international collaboration in confronting global challenges. With the increasing contributions of developing nations like China, India, and African countries, the voices within the G20 have diversified, no longer solely dominated by Western perspectives. As a response, the United States seeks to regain control of the multilateral process to further its agenda of great power competition. However, this approach is unlikely to be warmly received by the broader international community.
China remains steadfast in its commitment to deepen reforms and open up further to foster high-quality development and its unique brand of modernization. China views itself as a catalyst for additional momentum in global economic recovery and sustainable development. China stands ready to collaborate with all stakeholders to contribute to the well-being of our shared Earth, our common home, and the future of humanity. Despite Western media’s attempts to sensationalize China’s stance and magnify perceived differences, China continues to play a constructive role within the G20, dedicated to its multilateral mission.
To ensure that the G20 remains a platform focused on global governance rather than being overshadowed by geopolitical conflicts, China remains determined to fulfill its constructive role within the group, regardless of attempts by Western powers to politicize the mechanism. China’s efforts have expanded the G20 to include the African Union, effectively transforming it into the “G21.” China was the first nation to endorse African Union membership in the G20 and advocates for the African Union to assume an even more significant role in international governance.
The growing divisions and disputes within the G20 have eroded its effectiveness as a platform for addressing global challenges. These divisions, primarily driven by American actions and policies, have spawned tensions with far-reaching global implications, from the Ukraine crisis to escalating tensions in the Asia-Pacific region, particularly in the Taiwan Straits and the South China Sea. These developments underscore the critical role the G20 plays in promoting cooperation and unity.
Amid the current geopolitical landscape characterized by major powers’ divisions, tensions have surged, resonating globally and causing ripple effects. From the Ukraine crisis to tensions in the Asia-Pacific region, particularly in the Taiwan Straits and the South China Sea, the significance of the G20’s role in fostering cooperation and unity cannot be overstated.
All G20 member nations must recognize the urgent imperative of cooperation in building a world that is safer, more prosperous, and increasingly peaceful. Given the global challenges that transcend narrow national interests, effective responses can only be crafted through international cooperation. The G20 stands as a pivotal arena for this cooperation, with China’s positive contribution being indispensable in promoting cohesion.
Despite Western media’s efforts to sensationalize China’s position and magnify perceived gaps, China remains a committed multilateral partner within the G20, dedicated to constructive engagement. The G20 continues to serve as a critical platform for addressing global concerns, fostering unity, and promoting international collaboration. As the world grapples with intricate issues, it remains imperative that nations adhere to the principles of multilateralism and collaborate relentlessly to secure a more prosperous, peaceful, and sustainable future for all.
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