Prominent Speaker Series Regional Integration Between Hong Kong and the Pearl River Delta and the Prospects for Hong Kong Leung Chun Ying http://www.cyleung.hk/ 10 September 2010 Prominent Speaker Series The French Chamber

Shenzhen 30 Years Ago

Shenzhen today

Guangdong and HK Guangdong’s GDP surpassed Singapore in 1998, Hong Kong in 2003 and Taiwan in 2007. Guangdong’s GDP was roughly the same as HK’s in 2003; in 2009, it was nearly 3 times. In 2015, the GDP’s of Guangzhou and Shenzhen are respectively estimated to be close to, or even surpass HK’s GDP.

Coverage of PRD’s Pearl River Delta (PRD): Nine cities in Guangdong Province including Guangzhou, Shenzhen, Zhuhai, Dongguan, Foshan, Zhongshan, Huizhou, Jiangmen and Zhaoqing. Greater PRD: The 9 cities plus Hong Kong and Macau. Pan-PRD was conceptualized in 2003: 9 provinces Guangdong, Fujian, Jiangxi, Hunan, Guangxi, Hainan, Sichuan, Guizhou and Yunnan, plus the 2 SARs (9+2).

Pan-PRD Pan-PRD Region Sichuan Jiangxi Hunan Guizhou Fujian Guangxi Guangdong Yunnan HKSAR Macau Hainan

Greater PRD Guangzhou Huizhou Dongguan Shenzhen Hong Kong Macau Zhuhai Zhongshan Foshan Zhaoqing Jiangmen

Satellite Image of the Greater PRD

Positioning of the PRD Pearl River Delta Reform and Development Planning Outline 2008-2020: As the pioneer of reforms and the opening-up policy and an important economic hub of China, the Pearl River Delta has played a remarkable leading role and has an important strategic status in the overall effort of China to pursue economic and social development and carry on the reform and opening-up.

Coastal Petrochem, Steel and Shipbuilding projects in Guangdong 中国委内瑞拉石化项目 龙穴岛造船项目 中国科威特石化项目 宝钢1000万吨钢铁项目

Automobile Manufacturing Industries in Guangdong

Infrastructure Coordination (1) Countrywide High-speed Railway Beijing-Guangzhou-HK Line Guangzhou-Guiyang-Chongqing Line Shanghai-Shenzhen Coastal Line Guangzhou-Nanning-Kunming Line Western Guangdong Coastal Line

Infrastructure Coordination (2) Greater PRD “One-hour Radius” PRD Intercity High-speed Railway Planning Beijing-Guangzhou-Hong Kong High-speed Railway

Challenges Changes in the world economy and the need to boost internal demand, the PRD needs to change its mode of development. Policies include: ~ Upgrading the industries, developing heavy and chemical industries, high-tech industries and modern service industries ~ Inter-city integration in financial and transportation systems, and cooperation in urban planning: 3 Clusters of cities: Guangzhou-Foshan-Zhaoqing, Shenzhen-Dongguan-Huizhou and Zhuhai-Zhongshan-Jiangmen ~ Utilize the advanced systems of the HKSAR, further develop the PRD as the pioneer of the country’s reform and openning-up.

New Challenges to the Cooperation between Guangdong, HK and Macau Guangdong is less dependent on the SAR? Coordinating the infrastructures. e.g. 5 international airports in the Greater PRD: HK, Guangzhou, Shenzhen, Macau, Zhuhai. Competition among the ports is also fierce. Different legal, social and economic systems. Flow of people, goods and capital.

Problems in Coordination of Infrastructures(1) Airspace conflicts in the PRD Guangzhou Baiyun Int’l Airport Guangzhou Flight Information Region Shenzhen Baoan Int’l Airport HK Int’l Airport Macau Int’l Airport Hong Kong Flight Information Region Zhuhai Int’l Airport Direction of runway

The Way to Go for Hong Kong To support the PRD with advanced professional services. Further relaxation of policies to foster the “One-hour Radius” concept: cross-border vehicular traffic, co-location Inspection.

Supporting the PRD Industries: Maritime Services as an Example Besides shore-based port services, Maritime desk-based services. Maritime services include ship registration, management services, financing, sale and leasing, maritime insurance, legal services. HK can service the ports in the PRD and develop into a major maritime center.

The Border Development Zone 港島中環

Thank You!