On the 18th, Liu Ningrong, Associate Vice-President of the University of Hong Kong, wrote an article in the newspaper stating that U.S.-China economic decoupling and technological cold war are unavoidable. China's future depends on its own reform and opening-up; therefore, China needs a third opening-up.
According to a report by Central News Agency, Liu Ningrong, who is also the founding dean of the HKU Business School of China, published a long article in Ming Pao, noting that this year marks the 45th anniversary of the establishment of the Shenzhen Special Economic Zone. Earlier, People's Daily published a discussion with Huawei founder Ren Zhengfei, titled, "The more open a nation is, the more it drives our progress," which discussed fundamental research, education, and talent development.
Subsequently, the central government announced “Opinions on Deepening Comprehensive Reform Pilot Program in Shenzhen to Advance Reform and Innovation and Expand Opening-Up.” The article argues that this was by no means accidental, as U.S.-China competition has entered an unprecedented state. China's future depends on its own reform and opening-up.
The article points out that the establishment of the Shenzhen Special Economic Zone was an important measure during China's first reform and opening-up. In the early 2000s, China’s accession to the World Trade Organization was the second opening-up, which established its significant position in the world today.
However, China now needs a third opening-up, and Shenzhen's deep reform is expected to serve as a prelude to this opening-up. Yet, the world China faces during this third opening-up is vastly different from the favorable international environment of the first and second opening-ups.
According to the analysis, China's need for the third opening-up stems from its necessity to maintain its development trajectory amidst global upheaval through self-initiated reform. With U.S.-China economic decoupling and technological cold war being unavoidable, China must guard against others locking its doors from the outside and instead strive to open its doors as widely as possible.
Concerning Hong Kong’s role in China’s third opening-up, the article states that Shenzhen’s economic output has surpassed Hong Kong's, and in the "Twin Cities of Shenzhen and Hong Kong," Hong Kong’s role is no longer what it used to be. However, Hong Kong still has an irreplaceable role in the third opening-up.
The article points out that Hong Kong has played a pivotal role in China's reform and opening-up process, evolving through different stages. In the first stage, Hong Kong acted as an information hub. In the second stage, it became China’s most crucial capital hub. In the third stage (the third opening-up), Hong Kong must become an innovation hub, playing a critical role in education and technological innovation and participating in China’s new strategic development plans.
The article also states that although China has stepped into the threshold of being a manufacturing powerhouse, it remains a financial underdog. Against the backdrop of the long-term coexistence of U.S.-China competition, Hong Kong, as a global financial center, holds a position that no other Chinese city can replace. Financial innovation in Hong Kong is critically important.