Hong Kong's first five-year plan signals a new path for future growth

Editor's note: Zhang Hongsheng is deputy director of the China Academy of Digital Trade, Zhejiang University and an associate professor at the School of Economics, Zhejiang University.

The article is translated from the original Chinese and reflects the author's opinions and not necessarily the views of CGTN.

The release of the Hong Kong Special Administrative Region's first five-year plan marks an important milestone in the city's development.

Its significance goes beyond extending the policy horizon from one year to five years.

More importantly, it represents a change in development thinking, moving from responding to circumstances as they arise to taking a more proactive approach in preparing for the future.

The global economic landscape is changing rapidly.

Geopolitical tensions, supply chain adjustments, artificial intelligence and the green transition are reshaping competition among cities.

Many economies around the world are using medium- and long-term strategies to strengthen innovation and develop new industries.

These examples show that strategic planning can work alongside a market-oriented economy.

For Hong Kong Special Administrative Region (HKSAR), the five-year plan is not about replacing the market.

Instead, it aims to provide clearer direction, create more stable expectations and improve coordination so that market forces can operate more effectively.

A major part of the plan is the Northern Metropolis.

Proposed in the HKSAR Government's 2021 Policy Address, the project is expected to provide more than 70,000 housing units and around one million square meters of economic floor area over the coming years.

The importance of the Northern Metropolis goes beyond land development and housing.