The Release and Symposium of the China Urban Competitiveness Report (2010)was Held in Hong Kong
The Hong Kong NewsConference of “China Urban Competitiveness Report (2010) Sponsor: Better Hong Kong Foundation Co-organizers: NationalAcademy of Economics Strategy of CASS; Hong Kong Instituteof Asia-Pacific Studies of the Chinese University of Hong Kong
(April 27, 2010, Hong Kong) The HongKong News Conference of the “China Urban Competitiveness Report (2010)” washeld in Hong Kong on April 27, 2010. The conference was sponsored by the BetterHong Kong Foundation, and jointly organized by the Research Center of City andCompetitiveness of CASS and the Hong Kong Institute of Asia-Pacific Studies ofthe Chinese University of Hong Kong. The composition of the report took morethan six months, and it was led by Dr. Ni Pengfei, head of the City and Competitiveness ResearchCenter in CASS, along with urbancompetitiveness experts from Mainland China,China’s Taiwan, Hong Kong and Macau.
1. The ranking ofcities’ comprehensive competitiveness
The report usedobjective data to do quantitative analysis on the comprehensivecompetitiveness of 294 prefecture and above level cities in Mainland China, China’sTaiwan, Hong Kong and Macau.
The top 10 cities incomprehensive competitiveness were: Hong Kong, Shenzhen, Shanghai,Beijing, Taipei, Guangzhou, Tianjin, Kaohsiung, Dalian, and Qingdao. From 2005 to 2009,Hong Kong had ranked 1st as the most competitive city in Chinafor five consecutive years.
The 10 cities in comprehensivegrowth competitiveness were: Erdos, Tieling, Tonghua (tied forfirst place), Liaoyuan, Songyuan, Yingkou, Qingyuan, Baishan, Baotou,and Bayannur. Hong Kong ranked 289th, and in 2008,Hong Kong ranked 288th.
The top 10 cities ineconomic scale competitiveness were: Hong Kong, Shanghai, Beijing,Shenzhen, Guangzhou, Tianjin, Taipei, Foshan, Hangzhou, and Dongguan.In 2008, Hong Kong ranked 2nd, and in 2009 itsranking increased by 1.
The top 10 cities in economicefficiency competitiveness were: Hong Kong, Taipei, Kaohsiung,Hsinchu, Taichung, Macau, Shenzhen, Dongying, Tainan, and Dongguan.In 2008, Hong Kong ranked 2nd, and in 2009, itsranking increased by 1.
The top 10 cities in developmentcost competitiveness were: Haikou, Bozhou, Sanya, Hong Kong, Chengdu, Xianyang,Suizhou, Changde, Changchun, and Keelung. Hong Kong ranked 1st in 2008.
The top 10 cities in industriallevel competitiveness were: Hong Kong, Beijing, Taipei, Hsinchu, Shenzhen,Shanghai, Kaohsiung, Taichung, Keelung, and Tainan.In 2008, Hong Kong ranked 2nd, and in 2009, itsranking increased by 1.
The top 10 cities inincome level competitiveness were: Hong Kong, Macau,Shanghai, Shenzhen, Taipei, Beijing, Hsinchu, Xiamen, Kaohsiung, and Erdos. In 2008, thisitem was called life quality competitiveness, and Hong Kongalso ranked 1st.
2. Theperformance of Hong Kong’s urbancompetitiveness
As we can see from the rankingsof the comprehensive competitiveness of Chinese cities in the past fiveyears, Hong Kong had maintained the first place for manyyears. Compared to other cities in China, Hong Kong had an absolute advantagein the comprehensive competitiveness, but the gap between Hong Kong and theleading cities in the mainland were getting smaller and smaller. However,even with the strong development momentum in recentyears, Beijing, Shanghai, Shenzhen and other major cities in themainland cannot go beyond Hong Kong shortly.
Because of its larger economic scale and moremature foundation, Hong Kong ranked rather low in comprehensive growth competitivenessin the past five years, but it still maintained a healthy momentum incomprehensive growth.
Hong Kong’sadvantages in economic scale had showed a weakeningtrend, which had become more and more obvious. Shanghai had been catching up onthe economic scale. In 2005-2009, the gap in the competitivenessindex between Hong Kong and Shanghai decreased year by year; the data ofthe gap in the five years were: 0.26, 0.20, 0.17, 0.13, and 0.09 respectively.
Hong Kong’s economicefficiency was much higher than the mainland cities, which was worthlearning from. The mainland cities’ model ofeconomic should be transformed from the extensivegrowth mode of low labor costs to the intensive growth mode as soonas possible.
The developmentcost competitiveness mainly referred to the degree of dependence onenvironmental pollution and depletion of resources during the processof urban development. In the past five years, Hong Kong had a comparative advantage inthe rankings on this index, but it had a clearweakening trend.
The service industrywas the leading industry in Hong Kong. Hong Kong had a smaller proportion ofhigh-tech industry, and its industrial upgrading was slow. Judging from thedata in recent years, its competitiveness of industrial level was temporarilyin the lead, but still showed a weakening trend. The gap between Beijing andHong Kong was gradually narrowing.
Hong Kong had higherresident incomes and public revenues, as well as higher living conditions andquality of residents, and it could provide high-quality public services. It hadcomplete city functions and high income levels competitiveness.
3. The strategicresponses to Hong Kong’s future urban development
The high-end leadingstrategy to become a global city. Hong Kong had reached world-classlevel in key areas; it was in a leading position in fields such as finance,trade freedom, legal construction, and management, etc., in the world’s majoreconomies. As a global benchmark city, Hong Kong should formulate a high-endpositioning in the global competition. Besides extensive participation inglobal competition and cooperation, Hong Kong should also promote economicdevelopment in Asia, as well as the regional economic integration in MainlandChina, especially leading the Pearl River Delta to become the largestmetropolitan area in the world.
Through the overallnational planning to re-position Hong Kong. In the context ofglobalization and the rapid development of urbanization in China, the centraland local governments should aim to address global urban competitiveness, toseek win-win development for cities across the country. They should make rapidadjustment in the system planning of Chinese cities and include Hong Kong, Macauor even Taiwan into a new national urban planning. Hong Kong should be re-positioned to be built as a global city. It should actively seek tobe included into the 12th national five-year plan, and be confirmed in theplanning of building Hong Kong as a world-class city. For Hong Kong itself, itshould also develop a long-term strategic planning.
Improve the qualityof its industry and lead the key industries. The Hong Konggovernment should formulate clear and effective industrial development planningand policies to promote the gradual improvement of the overall quality of theindustries in Hong Kong. For the knowledge industry, the Hong Kong governmentshould create an environment and provide certain conditions to support andattract high-tech manufacturing and knowledge-based services.
Promote theintegration of software and the connection of hardware. HongKong, in the process of building a global city, needed to speed up itsconnection with mainland China,in particular, the integration with the Pearl River Delta. It should promotethe software integration, gradually enrich and improve the CEPA, and theprogressive realization of the free movement of persons, goods, services,money, capital, technology, and information, as well as the free exchange ofRMB and HKD. Implement the policy of “one location two inspection.”
Promote hardwareintegration. On the hardware level, Hong Kong should be included intothe national system of infrastructure planning, construction and operation assoon as possible, and thus realize seamless connectivity and the straightthrough of the infrastructure.
Build an educationhub, and improve the living environment. Establish ahigh-level lifelong education system suitable for the development of Hong Kong;popularize universal higher education, and emphasize on the innovation ability.Work closely with the Mainland to conduct common management of urban andregional environmental pollution, and carefully build a livable environment.
Improve thestatus of science and technology, and lead the knowledge-based economy. HongKong should be positioned as a global innovation and technology center. TheHong Kong government should formulate a development strategy of “building aninnovative city”, and support Hong Kong’s basic and applied research of scienceand technology. Hong Kong should create a favorable business environment tomake innovation an important driving force for promoting Hong Kong’s economicrestructuring and the development of knowledge-based industries.
4. Review of theurban competitiveness study
Professor Yang Ruwanfrom the Chinese University of Hong Kong and Professor Shen Jianfafrom the Hong Kong Institute of Asia-Pacific Studies attendedthe conference and reviewed the research result. Professor Yang Ruwan firstpointed out that the theme of the 2010 report was “Competitiveness: the cityand the nation move forward together as one”, which was a reasonable point ofview to examine the competitiveness of Chinese cities and China’s growing economicstrength. The results of the report on Chinese urban competitiveness were notsurprising. It was noteworthy that in the past five years, the relative gapbetween Hong Kong and other Chinese cities in competitiveness had been reduced,though compared with other Chinese cities, Hong Kong still maintained asignificant and unique advantages. With China increasing its status in theglobal economy, these advantages must be further strengthened and innovated tomake Hong Kong play a more important role in the future global economy. Chapter10 of the report discussed the urban competitiveness of Hong Kong, illustratingits existing comparative advantages in China, Asia and the world. The reportenvisaged that Hong Kong could develop into a leading city in Asia, and replaceTokyo to become one of the three global financial centers along with London andNew York.
Professor ShenJianfa pointed out that the Annual Report on China’s Urban Competitiveness hadranked Hong Kong as China’s most competitive city for five consecutive years.It was necessary to study whether the urban competitiveness of Hong Kong hadgone through any significant changes over the years. CUHK research teamdesigned an index on the comprehensive competitiveness of Hong Kong, includingeconomic performance, global links, social conditions and environmentalquality, and analyzed the changes of the index from 1990-2008, with the worstbeing 0 and the best 100. Hong Kong had the lowest urban competitive index in1992, and the highest in 2008. From 1990 to 2001, the urban competitivenessindex experienced ups and downs over time, but overall it showed a slowlyrising trend. Since 2003, the four parts of the urban competitiveness weresignificantly improved, so was the urban competitiveness index. Among the fourparts, the item of the global links was the most stable. The economicperformance and social conditions fluctuated significantly around the year1997, reaching low points in 2000 and 1997. The environmental quality was inits best condition during the years 1998-2002 while the economy wascomparatively worse. Since the low point in 2004, the environmental quality hadbeen improved. The per capita GDP, the ratio of financial sector employees intotal employment, the global links, and the life expectancy and other aspectshad made steady contribution on improving the competitiveness index of HongKong. On the contrary, social poverty, high housing prices and air pollutionwere the three major issues Hong Kong was facing, and they had affected the city’ssocial stability and environmental quality. In order to improve thecompetitiveness of Hong Kong, the government and society should take variousmeasures in economy, society and environment.
Ms. Karen Tang, CEOof the Better Hong Kong Foundation, concluded, “Hong Kong’s future, as a globalcity, is to develop into a world-class metropolis. It can rely on the Chinesemainland, while not be confined to China; it is committed to serving Asia, aswell as the world, and becomes the headquarters of multinational companies inAsia and the world. Therefore, we should adopt a number of practicalrecommendations, such as improving the living environment, developing Hong Konginto an education hub, formulating effective industrial development strategy,including Hong Kong into the national 12th five-year plan as China’s globalcity, and cooperating with mainland cities coordination, etc. These are thekeys to maintain Hong Kong’s status in the world’s leading position.”
If you have anyinquiries, please contact Ms. Jimmie Chow, communication manager of theFoundation. Tel: (852) 28653529 / 60306025; Fax: (852) 28613361; E-mail:jimmie_chow@betterhongkong.org; Website: www.betterhongkong.org.
*The Annual Reportof China’s Urban Competitiveness was once the project of National Academy ofEconomics Strategy of CASS. With Professor Ni Pengfei’s efforts in many years,CASS established the City and Competitiveness Research Center, of which ProfessorNi was appointed director. The an official business launch of the center washeld yesterday in Beijing, together with the release of the Annual Report ofChina’s Urban Competitiveness in the news conference.
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