Source: China Daily    Published: 2015-10-30

Hong Kong is poised to play a pivotal role in China`s pathbreaking "Belt and Road" initiative, covering the Silk Road Economic Belt and the 21st Century Maritime Silk Road. The two sweeping projects are a key part of China`s development strategy. The "Belt" will bring together China, Central Asia, Russia, West Asia, the Persian Gulf, the Mediterranean countries, Europe, Southeast Asia, South Asia and the Indian Ocean. The "Road" will take two directions - from the Chinese coast to Europe through the South China Sea and Indian Ocean and from the Chinese coast through the South China Sea to the South Pacific. On land, the initiative will rely on core cities along the "Belt and Road", using key trade zones and industrial parks as co-operative platforms. At sea, it will focus on jointly building smooth, secure and efficient transport routes connecting major ports.

The "Belt and Road" region comprises 60-plus countries of 4.4 billion people that generate a third of the global GDP. It will form the world`s largest free-trade zone, also strengthening economic collaboration through trade and investment, swifter currency conversion and speedier connectivity. Since 2000, China`s trade with the five Central Asian states has grown dramatically, reaching $50 billion in 2013. In April 2015, "Belt and Road" countries accounted for 26 percent of China`s foreign trade.

On Aug 25, about 650 business and political elites attended the first "One Belt One Road, Hong Kong Opportunities" forum organized by the Hong Kong Chinese Importers` and Exporters` Association to explore new development opportunities. Financial Secretary John Tsang Chun-wah said Hong Kong can play a leading role in various sectors, with our government promoting cooperation, enhancing trade and protecting investment. Tsang will shortly lead trade delegations and professional groups from Hong Kong and the mainland to visit East European countries. Next year will see other visits to Central Asia and countries along the "Belt and Road" sea routes.

Echoing support, legislator and New People`s Party Chairperson Regina Ip Lau Suk-yee on Sept 7 led organizations representing the mainland provinces and cities along the "Road", and the organizations representing the overseas Chinese communities in Hong Kong to establish the "Maritime Silk Road Society" (MSRS). It is willing to provide internship opportunities for local students in "Belt and Road" countries to broaden their knowledge and open their minds. Ip also suggested adding appropriate "Belt and Road" content in textbooks and organizing forums to help youths understand that the Silk Road dates back to the Han and Tang dynasties.

This month, the Hong Kong Commerce and Industry Associations trade group signed agreements after visiting enterprises and industrial parks in major cities and Free-Trade Zone of Fujian province - a major starting point of the Maritime Silk Road that offers many new cooperation opportunities.

Moreover, Hong Kong can serve as a hub for trade, logistics and finance under the "Belt and Road" framework in the Hong Kong-Fujian-Guangdong-ASEAN region. Hong Kong is in discussions with ASEAN (Association of Southeast Asian Nations) to sign a free-trade agreement so that our goods, services and investment can enter the ASEAN market more favorably. This development also holds enormous potential for Hong Kong.

Additionally, the "2015 Ningbo-Hong Kong Economic Cooperation Forum", with the theme of "Hand in Hand on the New Maritime Silk Road", ended here on Oct 14. It will help promote more fruitful exchanges and cooperation between the two port cities, focusing on reform and innovation and leveraging on the dual opportunities of the "Belt and Road" initiative and the Yangtze River Economic Belt strategy.

The Asian Infrastructure Investment Bank (AIIB) will set up an office here next year, helping Hong Kong seize "Belt and Road" business opportunities by providing loans, bonds and development funds to AIIB projects, and expanding renminbi business. This will also deepen the interconnection of the mainland and Hong Kong financial markets. If it faces uncertainties or disputes, AIIB will have on call our internationally attuned legal system and independent judiciary.

Hong Kong`s Commerce and Economic Development Bureau has offices in Southern and Central Europe, but more offices are needed in other "Belt and Road" countries. We should also deepen exchanges with the World Bank, the Asian Development Bank and other multilateral financial institutions to promote more contributions to "Belt and Road" projects.

Hong Kong enterprises have always been among leading foreign investors in Asia and so should welcome the chance to take advantage of the public-private partnership funding model to become more involved in "Belt and Road" infrastructure projects. In fact, many local companies have already started these efforts. With Hong Kong already firmly rising to "Belt and Road" challenges, many mainland firms will likely use the city as a springboard to invest in infrastructure projects in "Belt and Road" countries, with AIIB playing a supporting role.

Finally, both Hong Kong and the mainland should expound more specifically the benefits of "Belt and Road" to the people in the countries covered so that they get a fuller understanding of the ongoing benefits they will enjoy. Currently some countries are enthusiastic about the "Belt and Road" initiative, some are not, and others are adopting a wait-and-see stance.