As Beijing’s point man for Hong Kong left the city on Wednesday after a whirlwind seven-day “fact-finding” tour, those he met are left pondering the report he will file to the central leadership.
On the other hand, they received several clear messages from Xia Baolong, director of the Hong Kong and Macau Affairs Office (HKMAO), they and political watchers told the Post.
To them, the visit was aimed at setting the tone and direction for Hong Kong’s “next stage of development” by focusing on lifting the economy and retaining its international city status, as the spotlight shifts away from national security.
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This much was clear during the Beijing official’s 26 meetings that involved a broad swathe of stakeholders, they said.
One key message repeated throughout also was the assurance that the central government would support the city, with more preferential policies on the way.
Xia Baolong’s Hong Kong trip in numbers: how many events were on his itinerary?
While at least one attendee said he came away feeling “re-energised”, another said foreign business leaders who were also invited to meet Xia were more likely to take a wait-and-see stance to assess if the sessions bolstered the elite’s confidence in Hong Kong.
One attendee previously told the Post that Xia had also cited to the foreign business representatives 10 characteristics of Hong Kong that distinguished it from mainland Chinese cities, from its “one country, two systems” governing model to its legal system, the stock market and the proficiency in English.
Xia concluded his trip on Wednesday at the Shenzhen Bay land crossing, seven days after his arrival via the city’s airport. Apart from the 26 meetings, he had two dim sum breakfasts, visited Lion Rock Park and also sang “Below the Lion Rock” during a session with local youths, and toured the Palace Museum.
One of the meetings gathered some of the city’s most established developers and conglomerates, including representatives from Henderson Land, Sino Group, Swire Pacific and Wheelock Properties, as well the Kadoorie and Harilela families.
‘Finger on the pulse’
Simon Wong Ka-wo, chairman of the Kampery Group, was also at the meeting. Having met Xia three times since last April, Wong said businesses had more time to discuss their worries.
“Director Xia was like conducting a blanket audit of Hong Kong, which I think is a good thing for the city as it will enable the central authorities to keep their finger on the pulse of Hong Kong,” he said.
Comparing last week’s meeting with his first one with Xia in April, the owner of food and beverage businesses said he felt the Beijing official’s messages of support for the Hong Kong economy came across as more “definite” this time, while the earlier exchange seemed more “exploratory”.
Wong said the concerns shared at the meeting ranged from the state of the city’s property market to how to boost tourism and the loss of Hong Kong customers who preferred going across the border to spend their money.
He said while Xia and other HKMAO officials were familiar with the economic troubles faced by Hong Kong, the face-to-face exchanges allowed the business sector to explain the extent of their woes so solutions could be more targeted.
“Like I said about how Hong Kong consumers going north will impact the local market, they all know that,” he said.
“If the central authorities want to introduce favourable policies for Hong Kong, I believe these should focus on talent as well as integration into the development of the country.”
It was understood that Xia left the city via Shenzhen precisely to continue with his “fact finding” mission, but this time to understand the cross border consumption behaviour of Hong Kong visitors as he heard the concern aired repeatedly during his meetings.
Xia did not make any public remarks during his stay, other than brief greetings to the press at various events. Instead, Chief Executive John Lee Ka-chiu offered a summary of his key message on Wednesday, citing how the central authorities would fully support Hong Kong’s economic development.
Public backs prompt implementation of Hong Kong national security law: John Lee
Lee had also quoted Xia as saying that preferential policies for Hong Kong would come one after another after expanding a solo travel scheme for mainland visitors from Xian and Qingdao. With the addition, the scheme now allows for such travel from 51 mainland cities.
Urging people to have faith in the city, Xia had also stressed Beijing’s commitment to support the protection of property rights and the various freedoms in Hong Kong enshrined in the Basic Law, the city’s mini-constitution, according to Lee.
Tourism support measures
Johannes Hack, the head of the German Chamber of Commerce, said tourism was also a key theme at the Xia session that he attended with other foreign business representatives.
“All of the chambers that spoke, essentially all of them made the point that the economy was an issue for them, because it was slower than expected,” Hack said.
“Because a lot of them represent countries that are active here in the tourism industry, or whose members are active here, they would welcome stronger measures of support.”
Xia’s emphasis on the economy was made clear from the outset in a statement issued by his office, which quoted him as saying he would work with the city government and all sectors of society to plan a “new stage of development” for Hong Kong.
Professor Lau Siu-kai, a consultant for semi-official Beijing think tank the Chinese Association of Hong Kong and Macau Studies, met the HKMAO director over a more intimate breakfast meeting.
He said Beijing was keen to display support for the city and roll out more supportive measures to counter the recent “badmouthing” of Hong Kong’s status as an international financial hub and economic outlook.
“The most important thing he said is that [Beijing] has confidence in Hong Kong’s economic development and that the central authorities will step up efforts to support Hong Kong’s development through the continuous introduction of various policies and measures in the future,” Lau added.
“Hong Kong will still play an important role in the country’s development process, so Hong Kong’s economic prospects are bright and Hong Kong’s status remains important.”
Emeritus Professor John Burns of the University of Hong Kong’s public administration department said Xia’s presence in the city “reminded us all of Beijing’s authority and leadership”, adding that he believed the official was seeking to energise and unify the diverse group of “patriots” in power.
Xia Baolong has promised more ‘preferential policies’ for Hong Kong: John Lee
Brian Wong Yue-shun, assistant professor of philosophy at the University of Hong Kong, said Xia was likely to be looking to align the priorities of the city’s ruling class by conveying a consistent message in favour of a “pro-internationalisation” discourse.
“Because, yes, there are elements of the establishment here that have been pushing for a more hardline and, dare I say, draconian and heavy-handed handling of the security question,” he said.
“Yet, I don’t think Xia necessarily shares their intuitions. He is well aware that once Article 23 is passed, a vast majority, if not all, of the potential threats to national security would likely be stymied, and the focus should once again be placed on economic development.”
The Beijing official’s visit coincided with the final week of the Hong Kong government’s public consultation for home-grown national security legislation, mandated under Article 23 of the Basic Law, the city’s mini-constitution.
What about national security?
None of the statements from Xia’s office regarding his trip mentioned the legislation, even though it was a recurring topic throughout the 26 meetings, including in two engagements with local legal professional bodies and foreign business chambers.
National security was high on the agenda in Xia’s April visit, which included his delivery of a speech at an event calling on Hongkongers to remain vigilant for “anti-China forces” and choose other ways to express their views instead of holding protests.
Veteran political watcher Johnny Lau Yui-siu said Xia no longer had to highlight Hong Kong’s national security legislation given the muted response from local residents and the West.
He said he believed the United States’ lukewarm stance on Article 23 was a result of warming ties between Beijing and Washington.
“He was dealing with it in a low-key manner this time because the entire set-up already guarantees smooth sailing, so even though this remained the focus of his visit, why would he bother to put so much emphasis on it?” Lau said.
Hack said Xia’s assurances might not fully ease concerns among foreign businesses that were still worried about what they saw as higher compliance costs associated with the new security law.
Hong Kong’s Article 23 security law needs public interest defence: lawyers
“The simple fact is that the common law system still exists, the separate currencies, the fact that these exist, and that the central government is confirming them, that perhaps is seen as an expression of confidence ‘two systems’ is alive,” Hack said, referring to the governing principle of “one country, two systems”.
“From a Western perspective, you may look and say, OK, but certain things, when they align more closely with [mainland China], for instance, the much-discussed definition of state secrets [in the Article 23 proposal], if the alignment with the mainland is closer, then this may indicate that they are drawing closer.”
Political observer Johnny Lau said Hong Kong’s appeal to investors was linked to the international community’s views on whether the city was distinct from the rest of the country.
He added that Beijing must address the cause to stop a loss in faith in Hong Kong, as he cited the “political changes” of the recent years but did not elaborate.
“Can foreign business leaders or foreign countries maintain their confidence in Hong Kong’s ‘two systems’? If Beijing can solve this problem, Hong Kong’s economic problems will be easily solved,” Lau said.
More from South China Morning Post:
- Xia Baolong’s visit in numbers: from meetings to dim sum meals, the Post breaks down Beijing’s top man on Hong Kong affairs’ ‘inspection’ trip
- Xia Baolong promises more ‘preferential policies’ for Hong Kong, as John Lee says Cathay Pacific boosting capacity for expanded travel scheme
- Beijing’s top official on Hong Kong affairs urges business leaders, tycoons to keep faith with city, pledges central government’s full support
- Head of Beijing office overseeing Hong Kong affairs to visit city on fact-finding mission, gather feedback on Article 23 bill, health of economy
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