As a global trend of economic development, the digital economy has become the engine to drive high-quality economic growth of an economy. Everywhere in the world, the level of development in the digital economy has become an important indicator for assessing the competitiveness of a region or a country. Being recognized as the most international city in China, Hong Kong should capitalize on this trend and identify new areas of growth through the development of the digital economy, with a view to maintaining its competitiveness and prosperity.
According to the “White Paper on Global Digital Governance” (2022), released by the China Academy of Information and Communications Technology at the Global Digital Economy Conference 2023 in Beijing, the United States, China, Germany and Japan enjoyed rapid growth in the digital economy from 2016 through 2022, with the value of the digital economies in the US and China increasing by $6.5 trillion and $4.1 trillion respectively. The compound average annual growth rate of China’s digital economy was 14.2 percent, equivalent to 1.6 times the overall compound average annual growth rates of five countries; namely, the US, China, Germany, Japan and South Korea in that period. This shows that the development of the digital economy has become a major economic growth engine around the world.
In recent years, the Hong Kong Special Administrative Region government has strived to develop the city into a regional, or global, innovation and technology center, and the development of the digital economy is a core component of this strategy. Through measures such as the establishment of an artificial intelligence supercomputing center and the promotion of Web3 technology, the government endeavors to attract technology enterprises and talent from all over the world to the city and facilitate the commercialization of research and development outcomes. Digital transformation also covers government services and social governance. In Hong Kong, the development of a smart city in various aspects such as smart traffic, e-government services and healthcare information platforms can enhance the efficiency and transparency of public services as well as improve people’s quality of life.
Digital economy can be a major growth engine
I fully understand that these tasks are by no means easy, but they have begun to yield results, thanks to the concerted efforts of the government and various sectors of the community. Nonetheless, to take the work on the digital economy further, additional policies and measures will be needed and strengthening of coordination capacity will be required for the government to forge ahead with the development of the digital economy.
With the help of advanced information technology and data analysis capabilities, we are able to increase production efficiency, develop innovative business models ... For Hong Kong, the digital economy is not just a strategic option to cope with the challenges of globalization and seize development opportunities, but also a key pathway to ... continued international competitiveness
In October, Chief Executive John Lee Ka-chiu announced in his Policy Address the setting up of a Digital Policy Office by merging the existing Office of the Government Chief Information Officer and the Efficiency Office. Led by the commissioner for digital policy, the new office will be responsible for formulating policies on digital government, data governance and information technology. It will consolidate information technology-related resources within the government, promote the opening up of data, and coordinate with departments to launch more digital services and over 100 smart-city initiatives.
As a member of the Chief Executive’s Policy Unit (CEPU) Expert Group, and one who has been paying close attention to the development of Hong Kong’s digital economy for a long time, I was very excited to hear that the policy initiatives on the digital economy were officially announced in the Policy Address.
Last year, the CEPU invited me to attend, in my capacity as an Expert Group member, a number of focus group meetings on the development of the digital economy, during which participants had in-depth discussions and exchanges on related matters. When I came up with new ideas after these meetings, I made recommendations to the CEPU’s research teams. The CEPU maintains close communication with relevant bureaus of the government on various policy issues so as to discuss and refine the policies concerned in a measured manner, ensuring that the policies can stand up to scrutiny.
Therefore, it can be said that the CEPU’s Expert Group gathers groups of experts from various sectors of the community, providing an important platform where they can make good use of their knowledge and experiences, while enabling the HKSAR government to obtain views on different aspects for reference.
It is apparent that Hong Kong, as a bridge connecting the Chinese mainland and the global market, plays an important role and possesses clear advantages in facilitating cross-boundary data flow and safeguarding data security. In June 2023, the Innovation, Technology and Industry Bureau of Hong Kong and the Cyberspace Administration of China signed a memorandum of understanding on Facilitating Cross-boundary Data Flow within the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) to jointly promote cross-boundary data flow in the GBA. Therefore, given Hong Kong’s commitment to safeguard data security through formulating relevant policies and regulatory frameworks, the first advantage we enjoy is being in a position to facilitate data flow and cooperation within the GBA and on an international level, which will set an important example of international cooperation on the digital economy.
Besides, in face of the challenges posed by limited land resources and high population density, the digital economy can provide new solutions for Hong Kong, such as optimizing resource allocation through digital platforms and developing financial technology, e-commerce and industries with less reliance on physical space. Moreover, by developing the digital economy, Hong Kong can consolidate its status as an international financial center and expand its influence in the area of emerging technologies, further attracting international investment and talent.
In summary, the digital economy can facilitate the transformation and upgrading of traditional industries in Hong Kong, especially in finance, shipping and trade. With the help of advanced information technology and data analysis capabilities, we are able to increase production efficiency, develop innovative business models and tap into the international market, enhancing the competitiveness and profitability of our enterprises. In view of the above, for Hong Kong, the digital economy is not just a strategic option to cope with the challenges of globalization and seize development opportunities, but also a key pathway to long-term sustainable development and continued international competitiveness. More importantly, the digital economy is a crucial factor contributing to the long-term prosperity and stability of Hong Kong.
The author is a member of the Chief Executive’s Policy Unit Expert Group and a Hong Kong deputy to the National People’s Congress.
The views do not necessarily reflect those of China Daily.
