Belt and Road
It was a 19th century German geographer, Ferdinand von Richthofen, who coined the term “Silk Road” (Seidenstrasse), for the ancient trade routes linking merchants from China with those from Central Asia, Africa and Europe. China’s ambitious Belt and Road (B&R) Initiative is the 21st century revival of that historic Silk Road. And Germany, a founding member of the Beijing-based Asian Infrastructure Investment Bank (AIIB), is among the nations seeing promise in the far-reaching scheme.
Infrastructural development, from highways and railways to maritime and aviation transport, together with telecommunications and energy projects, is expected to fuel B&R, boosting the economic prospects of its participants. As a key link and the prime platform for the B&R, and with the Central Government’s support, Hong Kong can capitalise on its unique advantages to connect the Mainland with other B&R regions, in areas such as the international project financing, offshore Renminbi (RMB) business, professional services, as well as economic and trade co-operation.
Financial Services
Hong Kong is a magnet for international companies looking to do business in Asia and, in particular, the Mainland. Global business, as well as mainland companies, takes confidence in Hong Kong’s free flow of information and capital, reassurance in Hong Kong’s low taxes and business-friendly environment. They also have trust in Hong Kong’s strength as one of the world’s major financial centres. As B&R infrastructure projects begin to take shape, that ability will become increasingly prominent. RMB trade settlement, for example, will flourish in the B&R world. Hong Kong, the world’s largest offshore RMB business hub, is uniquely positioned to respond to that demand.
Hong Kong also has a role to play in the AIIB, created to improve infrastructure connectivity in Asia and to help developing economies find the financing they need. Hong Kong’s formidable capital markets and asset management professionals, together with its wealth of financial products, can provide substantial support to the AIIB. Hong Kong has been a member of the AIIB since 2017. Hong Kong is also expected to play a significant role as an international legal and dispute-resolution centre.
Logistics Services
The B&R Initiative will accelerate the movement of people and goods. That will boost the need for logistics services, which are also well-represented in Hong Kong. As one of the world’s busiest container ports, Hong Kong has some 800 maritime-related companies. As for aviation, the Hong Kong International Airport (HKIA) has been the world’s busiest cargo airport for many years. HKIA handles more than 120 airlines operating over 1,100 passenger flights a day. These connect Hong Kong to some 220 destinations, including about 50 on the Mainland. To maintain Hong Kong’s competitiveness as a global and regional aviation hub, the Airport Authority Hong Kong kicked off construction works of the Three Runway System for HKIA in early August 2016. The third runway was inaugurated in July 2022 and will go into full service in 2024.
Talent Hub
Hong Kong attracts talent from all over the world in areas such as research, technology and arts and culture. The city where East meets West can inspire the cultural and people-to-people bonds that B&R promises to realise. Multilingual, multi-talented professionals in accounting, law, architecture, engineering and real-estate management have the international experience to lead consultancies and manage infrastructure and construction projects in the B&R region. Being part of China but with its own economic, social and legal systems, the city has a global open market that allows free flow of capital, goods and information. In short, Hong Kong has what B&R needs to thrive in the 21st century.
The HKSAR Government continues to fully support the B&R Initiative and is looking to capitalise on the opportunities arising from the national Initiative proactively and holistically. The HKSAR Government signed an agreement on Hong Kong’s participation with the National Development and Reform Commission in December 2017.
Belt and Road Events
Co-organised by the HKSAR Government and the Hong Kong Trade Development Council (HKTDC), the annual Belt and Road Summit in Hong Kong brings together senior government officials, representatives of international institutions, business leaders and industry experts from countries along and beyond the B&R to exchange views on multilateral co-operation and explore new business opportunities arising from the B&R Initiative.
The HKETO Berlin also organises and supports events in Central and Eastern Europe to promote the B&R Initiative.