Blog

New Stage of High-Quality Belt and Road Initiative Cooperation

Over the past ten years since its launch, the Belt and Road Initiative (B&RI) has yielded fruitful results in promoting international cooperation and achieving win-win outcomes and mutual benefits. Last week, our country hosted the third Belt and Road Forum for International Cooperation (the Forum) in Beijing. The Forum brought together representatives from more than 150 countries and over 40 international organisations, and attracted more than 10 000 participants, demonstrating the international appeal and influence of the B&RI.

I attended the opening ceremony, the CEO Conference and the High-level Forum on Green Development of the Forum. When participating in the Forum, I could feel the willingness for mutual collaboration to facilitate better development by participants from various countries and regions, with different languages and cultures, and at varying development stages. The shared values of respect, equality and courteous treatment have enabled the continuous growth of the network of friends of the Belt and Road (B&R), which fully reflect that the achievements and opportunities are shared across the world under the B&RI initiated by our country.

The Financial Secretary attended the High-level Forum on Green Development of the Forum in Beijing last Wednesday and spoke at the Forum.

The B&R cooperation has seen the expansion from “hard connectivity” to “soft connectivity”, as well as from high-level forums to specialised multilateral cooperation platforms over the past decade. Such precious experience will serve as important reference for the way forward. The eight major steps announced by President Xi Jinping to support high-quality B&R cooperation will open a new stage for the B&RI. These major steps provide clear directions and set a higher standard for achieving higher-quality and higher-level development of the B&RI in future, and will boost confidence in and inject impetus to global economic recovery and long-term development. Under the “one country, two systems”, Hong Kong has the distinctive advantages of enjoying strong support of the Motherland and being closely connected to the world. We have been playing the roles of an active participant, contributor and beneficiary in the B&R cooperation. We are committed to making greater contributions to facilitating higher-quality development of the Initiative. Our efforts will pay off as we benefit from brighter development prospects in return.

1. Constructing a more multidimensional connectivity network

In future, the B&RI will not only continue to strengthen the connectivity of land transportation network, but also actively promote the Maritime Silk Road, expedite construction of the New Land-Sea Corridor and the Aviation Silk Road, etc. As an international shipping and trade centre as well as an international aviation hub, Hong Kong has an important role to play. For aviation, our edge is particularly strong, including being home to a highly efficient airport with a broad and dense international aviation network. Even during the pandemic, our cargo throughput remained first in the world. Currently, we are pressing ahead at full team with the resumption of flight capacity, which is expected to reach 80% of the pre-pandemic levels by the end of this year, and fully recover by next year. Upon the full commissioning of the Three-Runway System, the runway capacity will increase by 50%, with the target of handling 120 million passengers and 10 million tonnes of cargo annually from 2035 onwards. All these will help with the construction of the “Air Silk Road” network.

2. Pursuing practical cooperation and promoting higher-quality infrastructure development

As the cornerstone of the B&RI, infrastructure connectivity helps countries break through the bottlenecks that hinder development, and better integrate into the global supply and industrial chains, thereby achieving better development for all. In the next stage, the requirements on infrastructure in terms of quality, green development, sustainability, resilience, etc. will become higher, and the capital and technology so involved will require greater participation of market forces. A market-oriented and commercialised approach will help support relevant specific projects, enabling them to go deeper and farther, and become more practical.

In fact, Hong Kong, as our country’s international financial centre, brings together domestic and foreign capital as well as top-notch financial institutions and talents, and offers diverse and abundant financing channels for different projects, ranging from big infrastructure projects to “small yet smart” projects for people’s livelihood. We also launched our inaugural infrastructure financing securitisation product in the middle of this year, through securitisation of investment interests, accelerating fund flows and channelling funds to green and sustainable development projects.

Last week, the Hong Kong Monetary Authority (HKMA) signed a Cooperation Framework Agreement with the Silk Road Fund (SRF) in forming a B&R investment platform. Both parties intend to jointly contribute no more than RMB15 billion or equivalent in other currencies in phases. The HKMA and the SRF will leverage their respective advantages in capital, information, technology and management to explore onshore and offshore investment opportunities, and provide financial support to the B&RI. The BNR HK Flagship Impact Fund to be formed under the first phase, with total capital not exceeding US$1 billion or equivalent in RMB, will focus on investing in projects in areas such as energy transition and infrastructure, as well as environmental, social and governance (ESG).

In addition, Hong Kong’s quality professional services, ranging from engineering, planning and construction, accounting, finance and risk management, to legal, mediation and arbitration services, are trusted by the world. Hong Kong’s professional services can provide the B&R projects with initial analysis and assessment, financial and technology solutions, construction and project management, risk management, as well as operation and management upon project completion, thereby enhancing the cost- and operational-effectiveness of the projects.

Witnessing the signing of a Cooperation Framework Agreement between the HKMA and the SRF in forming a B&R investment platform in Beijing last Thursday.

3. Facilitating green development and promoting scientific and technological innovation

Green development is a trend embraced by countries around the world. It will not only meet the aspirations of developing countries for progressive development and better livelihoods for their people; with the aid of new energy, materials and advanced technology, it will also help reduce pollution in the course of economic development, protect the environment and achieve carbon neutrality. These will help achieve sustainable development marked with the co-existence of human beings and nature.

Being a leading green financial centre in Asia, Hong Kong is now making great strides to build itself as an international innovation and technology centre, in accordance with the National 14th Five-Year Plan. We are also pressing ahead with developing Hong Kong into an international green technology and green financial centre. These developments will help B&R countries to realise green development.

4. Promoting people-to-people exchanges and bonds

While “hard connectivity” in infrastructure and “soft connectivity” through harmonised rules and standards are central to promoting B&R cooperation, connecting people’s hearts is equally important. Hong Kong will continue to play an important role in this respect. We have signed memoranda of understanding on cultural cooperation with more than 10 B&R countries, and have launched the B&R Scholarship, the Scheme for Subsidy on Exchange to B&R Regions for Post-secondary Students, etc.

Hong Kong is developing itself into an East-meets-West centre for international cultural exchange at full steam. Hong Kong is familiar with the Mainland and the world, has rich cultural resources, and is a city that brings together Eastern and Western cultures. Under the present complicated geopolitical situation, Hong Kong should better capitalise on its unique cultural characteristics to facilitate dialogues, exchanges and mutual learning with, among and beyond the B&R countries, or even among different civilisations.

5. Enhancing the international cooperation mechanisms under the B&R Initiative

With the enhancement of international cooperation mechanisms under the B&RI, multilateral cooperation platforms for different fields can be established, in which the participating countries can have greater participation and voice in discussing various issues, better safeguarding the deeper and further development of the B&RI.

With our efficient and convenient international air services and connections; a free, open, diverse and inclusive culture; and a safe city environment, Hong Kong is an ideal platform for hosting major international conferences and activities. In addition to the B&R Summit held last month in Hong Kong, which is the biggest one ever organised, a number of major international functions and events will also take place in Hong Kong in the coming months, including the Hong Kong Fintech Week, the Global Financial Leaders’ Investment Summit, the first ever Asian PRIORITY Summit by the Saudi Arabia-based Future Investment Initiative to be held in Hong Kong, the Asian Financial Forum, etc. Political and business leaders from the Mainland and around the world will be invited to attend these international conferences, which will be conductive to enhancing exchanges and mutual understanding among various parties.

The eight major steps will support the B&RI to march towards a new stage of higher-quality and higher-level development, bringing tangible benefits to the people of participating countries, as well as greater contributions to the global community of a shared future. Being the key link and functional platform for the B&RI, Hong Kong will certainly make an all-out effort to actively participate in and contribute to the eight major steps. At the same time, we will leverage the new opportunities thus arising to achieve better and higher-quality development for Hong Kong.

October 22, 2023