Hong Kong’s New Strategic Role After the Third Plenum

Executive Summary:

• Key officials visited the Hong Kong Special Administrative Region (HKSAR) in late August to explain the city’s political, economic, cultural, and security responsibilities. They signaled deeper integration with the People’s Republic of China (PRC) mainland while leveraging its unique international position.
• Hong Kong is positioned as a “super-connector” in the PRC’s national strategy, with a focus on expanding trade relations in Southeast Asia and the Middle East to counter Western economic containment.
• The Chinese Communist Party (CCP) sees Hong Kong as crucial for enhancing the PRC’s soft power, particularly through its strong English-language capabilities.
• The city has also been tasked with attracting and effectively deploying international talent in the technology of financial sectors that are seen as key industries for the Greater Bay Area’s development.

The Third Plenary Session (三中全会) of the 20th Central Committee of the Chinese Communist Party (CCP) signaled an evolving role for the Hong Kong Special Administrative Region (HKSAR) in the national strategy of the People’s Republic of China (PRC). At a recent forum held at the Hong Kong Convention and Exhibition Centre a month after the meetings in Beijing, key figures such as Shen Chunyao (沈春耀), Deputy Director of the Constitution and Law Committee of the National People’s Congress, and Wang Wentao (王文涛), Secretary of the Party Leadership Group and Minister of Commerce, went to Hong Kong and outlined Hong Kong’s future responsibilities in the context of the country’s broader reforms (Hong Kong Government [HKG], August 26).

With over 500 attendees, including government officials, Executive Council members, and Legislative Council members, Hong Kong’s Chief Executive John Lee Ka-chiu (李家超) emphasized that the third plenum had put forward over 300 reform measures covering political, economic, cultural, social, ecological, and national security areas. He called on all sectors in Hong Kong to deeply study the directives and apply them in their respective roles (HKG, August 26).

Expanding ‘Trade Circles’ to Counter Western Containment

Wang Wentao’s speech highlighted Hong Kong’s critical role as a “super-connector (超级联系人)” for the PRC’s dual-circulation strategy (双循环), the One Belt One Road initiative, and the recently developed “new quality productive forces (新质生产力)” (Mingpao, August 27; Wenweipo, August 27). Wen said that one of the primary tasks for Hong Kong is to create more “trade circles (贸易圈).” This refers to building multilateral relations with like-minded countries primarily in Southeast Asia and the Middle East to break through Western efforts to isolate and economically contain the PRC. These circles are intended to strengthen Hong Kong’s position as a trade hub while mitigating the effects of growing geopolitical tensions between China and the West, particularly the United States.

However, Wang also pointed out that Hong Kong faces challenges due to the high costs of operating there, particularly for logistics firms. He cited the high fees at the city’s container ports, which are significantly more expensive than those in Shenzhen or Shanghai and undermine its competitiveness. He called for addressing these structural issues so that Hong Kong can remain an integral part of the PRC’s global trade networks (Photonmedia, August 27).

Hong Kong Given Leading Role in Telling China’s Story

Shen Chunyao’s speech focused on Hong Kong’s role in enhancing the PRC’s soft power globally. Given the city’s strong English-language education system, Hong Kong is expected to help craft and promote the country’s narrative on the global stage (Mingpao, August 27). This involves countering negative perceptions in Western media, particularly on issues such as human rights and political governance. Hong Kong is considered as a bridge for the PRC to connect with international audiences and improve its global image. However, specific measures have not been discussed, while a number of local and international media lack confidence in the city and have been derisking their operations by relocating to other countries in the region (VOA, July 23, 2020; NBC, March 30). The recent refusal of visa to Hong Kong for Bloomberg journalist Haze Fan, for example, will not help rebuild international confidence in the city (HKFP, August 20).

International Talent Hub

Attracting international talent is another critical aspect of Hong Kong’s new role. The government’s Chief Secretary Chan Kwok-ki (陈国基) raised the question of how Hong Kong can become a global hub for high-end talent. Shen responded by emphasizing the need not only to attract talent but also to deploy it effectively, with special focus on hiring into Hong Kong’s key industries such as finance and technology (Photonmedia, August 27).

This aligns with Beijing’s broader strategy for the Greater Bay Area (粤港澳大湾区), where Hong Kong is expected to collaborate closely with cities like Shenzhen and Guangzhou to foster innovation and economic development. By positioning itself as a magnet for global talent, Hong Kong is seen as crucial to achieving the country’s economic ambitions (see China Brief, January 19).

One notable example of the type of integration Wang cited was the introduction of a policy allowing foreign permanent residents in Hong Kong to apply for travel permits to the PRC mainland (Mingpao, August 27). This policy, developed in response to specific integration challenges, reflects Beijing’s gradual approach to solving practical problems to facilitate deeper collaboration within the region.

Political Compliance and National Security

The forum underscored the political dimensions of Hong Kong’s new responsibilities. Shen Chunyao reiterated the importance of national security and political compliance, urging Hong Kong to align its governance more closely with standards on the PRC mainland. He argued that the implementation of the National Security Law (国安法) in 2020 marked a significant shift in this direction, curtailing political dissent and bringing the HKSAR’s legal framework more in line with that of the mainland (Wenweipo, August 27).

Zheng Yanxiong (郑雁雄), Director of the Hong Kong government’s Liaison Office, urged Hong Kong’s leadership to proactively ensure that Hong Kong remains resilient and continues to thrive under the framework of the third plenum (Photonmedia, August 27).

Conclusion

The CCP’s directives for Hong Kong that have come out of the third plenum indicate further integration of the autonomous region with the PRC mainland. This is balanced with the decision to continue to leverage Hong Kong’s strengths—namely, its international orientation and anglophone abilities—to extend the PRC’s influence overseas. While the erosion of Hong Kong’s political autonomy has garnered international attention, Beijing’s focus on the city’s role as a financial center that operates in the interests of the CCP is less well understood. Ultimately, the third plenum reaffirmed that the PRC sees Hong Kong as a means of breaking Western economic and technological containment.