OpinionHow markets will test Hong Kong’s new economic model
Industrial policy can guide and catalyse but it cannot substitute for a genuine competitive advantage
This is more than an administrative exercise. It marks a fundamental shift in Hong Kong’s economic philosophy.
For decades, the city has prided itself on low taxes, light regulation and market-led growth. Now it is moving – cautiously but unmistakably – towards a model more aligned with mainland China’s state-led development strategy.
Conventional economic thinking has long held that markets are best at allocating resources and driving innovation. Yet mainland China’s rise has challenged this orthodoxy. Through long-term planning, policy coordination and targeted investment, it has become the world’s second-largest economy and a formidable technological power.
This model is not simply about central control. It combines top-level strategic direction with broad consultation and coordinated execution. The result is an ability to mobilise resources at scale towards national priorities.