By now, it’s common wisdom that cities with limited land and natural resources must look outward to thrive. But how they do it — and whether it actually benefits those at home — is where the difference lies. In China’s eastern province of Zhejiang, a curious agricultural metaphor has quietly evolved into a powerful development model — the “sweet potato economy”.

The idea isn’t new. Back in 2004, then-Zhejiang Party secretary Xi Jinping used the sweet potato as a metaphor for local development. The logic is simple but smart: Just as the sweet potato sends out vines in every direction to absorb sunlight and nutrients, while keeping its core rooted in fertile soil, a regional economy should extend its reach globally while keeping its value-added base strong at home. It was a metaphor, but also a mission.

Fast-forward two decades, and Zhejiang has made that mission a reality. Its “economic vines” now stretch across the globe through trade, investment, digital commerce, and international partnerships. But crucially, its “root” — the province’s core industries, innovation hubs, and skilled labor — remains firmly planted in home soil. This inside-outside dynamic isn’t just poetic; it’s producing results. Zhejiang now boasts one of the most agile, outward-facing, and tech-driven economies in China, with cities like Hangzhou rising as regional stars.

This model holds a mirror to Hong Kong, which is facing a pivotal moment in its own economic journey. Once a poster child of global capitalism, the city is grappling with how to stay relevant in an era where regional integration, technological change, and economic diversification are no longer optional — they’re essential. The problem? Hong Kong’s economy still leans heavily on traditional pillars — finance, real estate, logistics, and professional services. These sectors have served the city well, but are unlikely to carry it through the next era of global competition.

Here’s the real insight from Zhejiang: The future isn’t just about growing Hong Kong’s economy. It’s about the growing Hong Kong people’s economy — the capacity of local people, businesses and institutions to adapt, thrive and lead in a more complex world. And that means embracing a new kind of thinking: bolder, more flexible, and unafraid to send out “vines” while strengthening the core.

Zhejiang didn’t get here by accident. The province took calculated steps to build what’s now a textbook example of an export-oriented, innovation-led, digitally savvy economy. Hong Kong, too, can take some notes.

First, rethink the idea of “headquarters plus base”. Encourage Hong Kong companies to set up manufacturing or service operations in the Belt and Road Initiative markets, the Guangdong-Hong Kong-Macao Greater Bay Area, or free trade zones like Hainan province. But keep the high-value functions — research and development, finance, and decision-making — anchored in Hong Kong, ideally in emerging districts like the Northern Metropolis. In short: go global, but don’t hollow out its industries.

For Hong Kong, the lesson is clear: It’s time to stop obsessing over which sector will be “the next finance” or “the next real estate”. The better question is: How do we build an economy that grows from its people outward, not just upward?

Second, turn the city’s free port status into a launchpad for digital trade. With its top-tier logistics infrastructure and customs efficiency, Hong Kong is perfectly positioned to become a “digital trade hub”. But it won’t happen unless the city commits to building digital infrastructure and reforming outdated regulatory frameworks. Think less about shipping containers, more about data flows.

Third, lean harder into regional cooperation. Yes, there’s already talk about further integration into the Greater Bay Area. But Hong Kong has barely scratched the surface in terms of real institutional alignment — harmonizing rules, enabling factor mobility, and co-investing in infrastructure and innovation. Places like Qianhai and Hengqin aren’t just footnotes; they should be active laboratories for new modes of cross-border cooperation.

Fourth — and perhaps most importantly — focus on young people. Zhejiang’s success with the global “Zhejiang merchants” network wasn’t just about capital. It was about creating a platform for younger entrepreneurs to go global, take risks, and bring ideas back home. Hong Kong should invest in a global “Hong Kong folk network”, supporting startups, global fellowships, international exchanges, and digital incubators. Build the scaffolding for the next generation to flourish globally, and they’ll return the favor.

What makes the “sweet potato economy” more than just a metaphor is how rigorously it adapts to each era. Its first wave — call it version 1.0 — was about “geographic escape”: When Zhejiang’s mountainous terrain offered limited prospects, people left to find opportunities elsewhere. Version 2.0 saw those early pioneers reinvesting back home, setting up factories, bringing back knowledge. Now, in version 3.0, Zhejiang companies are embedded in global supply chains, acquiring assets, tapping talent, and funneling high-end value back to the province.

But none of this would be possible without a fertile home base. That’s the catch: It’s not enough to go global. You have to give people a reason to stay connected to home. That means excellent infrastructure, a welcoming business climate, smart government, and space to grow. Zhejiang built that. Hong Kong, in recent years, has allowed parts of that foundation to erode — particularly for small businesses and younger talent.

There’s also a larger philosophical point. Zhejiang’s model is deeply rooted in market logic. It trusts businesses to know what’s best for their growth, and government acts as an enabler, not a micromanager. In too many cases, cities try to control outcomes or politicize the process. That’s a shortcut to stagnation.

In the end, the sweet potato reminds us that an economy doesn’t thrive by standing still. It needs to reach out — to absorb ideas, energy, capital, and talent — but it must also nourish and grow its core. For Hong Kong, the lesson is clear: It’s time to stop obsessing over which sector will be “the next finance” or “the next real estate”. The better question is: How do we build an economy that grows from its people outward, not just upward?

The future belongs to cities that know where their roots are — and where their “vines” can reach.

The author is chairman of the Asia MarTech Society and sits on the advisory boards of several professional organizations, including two universities.

The views do not necessarily reflect those of China Daily.