The Hong Kong Special Administrative Region signed 38 cooperation agreements with Southwest China’s Guangxi Zhuang autonomous region on Wednesday, totaling 48.4 billion yuan ($6.8 billion) in contract value.
Among them, the two governments inked a letter of intent, while the bureaus responsible for finance, city development, culture and tourism, transportation, and trade from both sides signed five partnership deals.
Nearly three-quarters of the 26 investment projects are focused on emerging industries such as innovation and technology as well as electronics information, accounting for more than 90 percent of the total contract value.
Sixteen of the projects are tied to the bourgeoning China-ASEAN (Association of Southeast Asian Nations) Industrial Cooperation Zone in seven cities of Guangxi.
Dozens of companies such as Bank of China (Hong Kong), Hong Kong papermaking firm Lee & Man Paper, and the Hong Kong-based, multi-industry Sunwah Group are involved in these cooperation projects.
“As Guangxi doubles its efforts in building out a new development paradigm, Hong Kong is eager to leverage its logistics, port management expertise, high-end business services, and high value-added supporting services such as legal and funding services to bolster enterprises in Guangxi and other parts of West China,” Hong Kong Chief Executive John Lee Ka-chiu said.
Echoing Lee, Liu Ning, Party secretary of Guangxi, said the autonomous region, with the Guangdong-Hong Kong-Macao Greater Bay Area as its closest and most closely connected regional economic and technology hub, is an important supplier of labor, building materials, agricultural products, and electricity to fuel the economic powerhouse.
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“Guangxi is poised to better integrate into the Greater Bay Area’s supply, capital, and industrial chains,” Liu added.
Ties between the two sides have increasingly grown – Hong Kong people can reach Guangxi’s tourism hubs of Nanning, Guilin and Wuzhou via high-speed rail in four hours direct.
From 1998 to March 2024, Hong Kong established 3,485 enterprises in Guangxi, investing more than $10.1 billion. In the first quarter of this year alone, 48 new companies backed by SAR investors were set up in Guangxi.
Hong Kong has been Guangxi’s largest source of investment and the top investment destination outside the Chinese mainland for many years.
As an international finance, trade and shipping hub, Hong Kong provides Guangxi crucial access to global markets. In 2023, trade between the two reached 27.42 billion yuan, totaling 2.93 billion yuan in the first quarter this year.
Nine matchmaking events were held at the agreement signing ceremony on May 22, covering a variety of sectors, such as trade, finance, agricultural product certification, and traditional Chinese medicine.
Leung Chun-ying, vice-chairman of the National Committee of the Chinese People’s Political Consultative Conference, the nation’s top political advisory body, said these events provided a platform for mainland enterprises to understand the functions and value of Hong Kong as an international financial, trade, and shipping center, as well as for the city to size up the new development needs of mainland enterprises.
Moreover, Guangxi is the only one of China’s five autonomous regions with a coastal boundary, connecting to Guangdong province in the east and bordering Vietnam to the southwest. It serves as an important gateway to Southeast Asia and the ASEAN.
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During a meeting with Liu on Tuesday, Lee said he believes that “the economic ties between Hong Kong and ASEAN will continue to expand, and Hong Kong can play an important role in promoting Guangxi’s external trade, enjoying mutual benefits and unlimited business opportunities”, noting that ASEAN has long been Hong Kong’s second-largest trading partner.
