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Building a borderless Bay Area under the policy of "One Country, Two Systems"

Author: Source: Date:2017-12-19

Lead: Promote the integration, internationalization and globalization of Guangdong-Hong Kong-Macao Bay Area through system innovation
Preamble: Adhere to the basic principle of "One Country, Two Systems", emancipate the mind, promote bold reforms, bridge the existing "three isolations" in Guangdong-Hong Kong-Macao Bay Area, eliminate "two boundaries", and build a world-class bay area economic community and social community.

The 16th Southern China Reform Forum co-sponsored by Shenzhen Innovation and Development Institute, China Society of Economic Reform, Guangdong Society of System Reform, and Guangdong Economic Society was held in Guangzhou on the afternoon of December 15. Mr. Zhang Siping attended the forum and delivered a keynote speech entitled "Basic Direction and System Innovation in the Planning and Construction of Guangdong-Hong Kong-Macao Bay Area".

Since Premier Li Keqiang proposed "to study and formulate the urban agglomeration development plan of Guangdong-Hong Kong-Macao Bay Area" in March this year, there have been various discussions and studies across the whole country, especially in Guangdong province. However, there hasn’t reached consensus on such issues as the concept of Guangdong-Hong Kong-Macao Bay Area and how to plan and construct it. Mr. Zhang spent more than half a year to conduct an in-depth study of Guangdong-Hong Kong-Macao Bay Area, and put forward the study report titled "Bay Area under the Policy of One Country and Two Systems - System Innovation in the Construction of Guangdong-Hong Kong-Macao Bay Area". On the premise of adhering to the principle of "One Country, Two Systems", the report studies the future directions, functions and prospects of Bay Area from the perspective of system, structure, mechanism, management and policy innovation, discusses how to exert the structural advantages of Guangdong-Hong Kong-Macao Bay Area and boldly carry out system innovation, so as to truly realize the goal of building Guangdong-Hong Kong-Macao Bay Area into the most developed and civilized world-class economic, political, social and cultural bay area. To this end, the report puts forward some constructive, long-term and directional opinions and suggestions. The audience listened to the hour-long speech delivered by the Mr. Zhang attentively and took notes from time to time. After the conference, nearly 40 institutions asked Shenzhen Innovation and Development Institute for the report in the hope of further study.

Mr. Zhang pointed out that there were as many as 19 national new areas approved by the State Council and included in the national strategy in the mainland of China. These new areas, in general, have different directions and objectives determined according to the division of labor among different areas decided by the central government, but they are in a same country, same system, same customs zone, and same economy. Guangdong-Hong Kong-Macao Bay Area is a special arrangement covering eleven cities, which is planned, constructed and developed in a same country, yet involving two systems, two special administrative regions, three special customs zones, and undertakes special strategic tasks in the process of national reform, opening up and economic development. Therefore, compared with other national new areas, Guangdong-Hong Kong-Macao Bay Area should have its unique directions and objectives, and proper strategies for their realization.

Regarding the basic direction of planning and development of Guangdong-Hong Kong-Macao Bay Area, Mr. Zhang believes that Hong Kong and Macao shall play a role in promoting the further integration, internationalization and globalization of Guangdong-Hong Kong-Macao Bay. This is in line with comrade Deng Xiaoping's strategic concept of building several Hong Kong-like cities in China in the 1980s before the return of Hong Kong to China , President Xi Jinping's remarks that China will continue to participate in the process of economic globalization and continue to promote the further opening up, exchange and integration of the global economy, and also in line with the purposes of the proposal put forward by Premier Li Keqiang as to formulate the urban agglomeration development plan of Guangdong-Hong Kong-Macao Bay Area, namely, to give full play to the unique advantages of Hong Kong and Macao, and to improve the position and functions of the Bay Area in the national economic development and opening up, by strengthening cooperation among Guangdong, Hong Kong and Macao.

To adhere to the direction of internationalization and integration of Guangdong-Hong Kong-Macao Bay Area, we must correctly and comprehensively understand "One Country, Two Systems". Mr. Zhang believes that "One Country, Two Systems" is the biggest institutional dividend for the construction of the Bay Area, yet may also become the biggest constraint for its construction. At present, there are three isolations between Hong Kong, Macao and nine pearl-river-delta cities, due to the existence of "two systems": system isolation, physical isolation, and internet isolation. The three isolations have brought a number of serious problems to the planning and development of Guangdong-Hong Kong-Macao Bay Area.


How to understand the three isolations? This involves the understanding of "One Country, Two Systems". It is generally understood that Hong Kong's capitalist system and way of life generally involve five aspects:
Political systems and structures
They mainly refer to the administrative, legislative and judicial systems and structures.
Economic systems, structures and policies
They mainly include the natural and legal person property protection system, independent fiscal system, low-tax-rate taxation system, independent monetary and financial system.
Social systems and policies
They mainly include the education system, science and technology policies, medical and health service policies, social welfare system.
Systems for safeguarding fundamental rights and freedoms of residents
They mainly include the system in which residents are equal before the law, the rights to elect and be elected, Hong Kong residents' personal freedom protection system.
Provisions on the capitalist way of life in Hong Kong
The way of life of Hong Kong residents includes the living habits of Hong Kong residents and the way of life of Hong Kong residents which is different from the socialist way of life in the mainland. An old saying may reflect the typical capitalist way of life in Hong Kong: horse-racing, card-playing, stock trading as usual.
After nearly 40 years of reform and opening up and 20 years of development since Hong Kong's return to China, great changes have taken place in the mainland's political, economic, social and cultural systems, our understanding of Hong Kong's capitalist system and way of life has been deepened, and continuous progress has been made in the ideological emancipation toward the relationship between the mainland’s socialism and Hong Kong's capitalism.
In the opinion of Mr. Zhang, Hong Kong's systems can be broadly divided into four categories in the light of the present level of understanding:
Category I: Hong Kong's specific systems on economic development and social progress, which are basically outside the scope of the capitalist system
Category II: Hong Kong's systems of protecting fundamental rights and freedoms of its residents, which are basically outside the scope of the capitalist system
Category III: Hong Kong's way of life, which is basically outside the scope of the capitalist system.
Category IV: Hong Kong's political system, which is the core and basic attribute of Hong Kong's capitalist system and the main embodiment of "One Country, Two Systems".

Mr. Zhang believes that the future construction of Guangdong-Hong Kong-Macao Bay Area should be guided by the principle of "two political systems and one integrated economic and social system", for the purpose of gradually building a borderless Bay Area.
In the political field, China’s socialist political system shall be implemented in the nine pearl-river-delta cities falling within the Bay Area under the leadership of the Communist Party, while a capitalist political system shall be implemented in Hong Kong and Macao in administrative, legislative, judicial and other aspects.



In the economic field, Hong Kong's economic system and policies shall be gradually learnt, introduced and applied in the Bay Area, under the efforts of deepening economic system reform and offering preferential policy arrangements, to achieve the comprehensive integration of economic systems and policies in the Bay Area.


In the social field, resources sharing and mutual opening-up, integration and cooperation shall be implemented to enable the residents in the Bay Area to enjoy the fruits of development, public services provided by the government, social welfare and social security.


Regarding the basic rights and freedoms of residents, the nine pearl-river-delta cities should learn from the practice of building a society ruled by law in Hong Kong, strictly implement the system of basic rights and freedoms of residents stipulated in the Constitution, strive for the realization of equal rights, equal protection, equal safety and equal freedom of residents and personal property in the Bay Area, and share the benefits of human civilization brought about by the rule of law.


In line with the long-term goal of "two political systems and one integrated economic and social system" for the Bay Area, we must gradually break the three isolations between Hong Kong, Macao and other nine cities in the Bay Area, build a "borderless" Guangdong-Hong Kong-Macao Bay Area, make the Bay Area the most energetic bay area with the most unimpeded free flow of personnel, goods, capital, labor, information, technology and other elements, and achieve optimal combination and most effective allocation of factors of production in the Bay Area.
In this regard, Mr. Zhang puts forward a four-point development proposal:


First, realize the liberalization of trade in goods and services, and build Guangdong-Hong Kong-Macao Bay Area into China's largest free trade area.
Second, realize the free flow of capital, and build Guangdong-Hong Kong-Macao Bay Area into the world's most influential financial center.
Third, realize the free flow of individuals and the overall integration of social policies, and build sound social community and residential circle in Guangdong-Hong Kong-Macao Bay Area.
Fourth, protect the basic rights and freedoms of citizens in accordance with the law, and build the world's most secure bay area for residents and wealth.
Finally, Mr. Zhang pointed out that, in order to achieve the internationalization and modernization of Guangdong-Hong Kong-Macao Bay Area and to build a world-class bay area economic community and social community, the key is to emancipate the mind, accurately understand "One Country, Two Systems", and make breakthroughs in theoretical innovation, system innovation and other major aspects.


After nearly 40 years of reform and opening up and 20 years of development since Hong Kong's return to China, both Mainland China and Hong Kong have undergone essential changes in their basic political, economic, and social systems. In the future construction of Guangdong-Hong Kong-Macao Bay Area, we must boldly carry out theoretical and practical exploration and innovation, while adhering to the policy of "One Country, Two Systems" and following the principles of the Constitution and the Basic Law of Hong Kong.


Mr. Zhang believes that the experiment and innovation should be allowed under the leadership of the Party in a wide range of fields, such as economy, administration, society, and culture, as long as they are conducive to the overall economic, social and cultural development and sharing of the Bay Area, the modernization and internationalization of the Bay Area, and the construction of modern civilization of the Bay Area, while Hong Kong and Macao shall be allowed to continue their special governance models which are different from the ones applicable to the nine pearl-river-delta cities, including the election of the Chief Executive and the formation of the Legislative Council as provided for in the Basic Law, the judicial jurisdiction and the special rights conferred by the central government.