The Hong Kong Special Administrative Region is at a major turning point in its economic history. Global tensions continue to grow exponentially, forcing companies to rethink their supply chains, while the rapid rise of artificial intelligence is changing how the world does business. Meanwhile, the Chinese mainland continues to shift its focus away from low-end manufacturing and heavy infrastructure toward a modern economy powered by high-tech innovation, becoming a world leader in everything from AI and robotics to electric vehicles.

How can Hong Kong maintain its competitive edge in this increasingly challenging landscape? The days when the SAR acted as a simple, passive gateway into the mainland are rapidly moving into the rearview mirror. It must embrace a more proactive role. By aligning its local plans with the national development goals, Hong Kong can become the ultimate hub for Chinese technology, global investment, and regional business by 2030. To get there, the city must focus on three key steps: strengthening its tech ecosystem, modernizing its financial markets, and building stronger international partnerships.

Growing the tech and innovation hub

Hong Kong is home to world-class research institutions, but it has historically struggled to keep the economic rewards local. Innovative tech companies frequently move away, global experts are hard to retain, and local science graduates often look for careers overseas. To close this gap, Hong Kong should encourage the development of thriving, integrated tech neighborhoods around local universities. By sharing laboratory space and matching researchers with capital, Hong Kong can turn cutting-edge ideas into real-world products.

To attract prominent businesses, the SAR government should offer tax breaks to companies and fast-track visas to their non-local staff if those companies commit to hiring local workers and establishing long-term roots. By combining common law with advanced digital infrastructure, Hong Kong can become an increasingly trusted place in Asia for secure, automated online trade and digital commerce.

Modernizing financial strengths

As the mainland economy continues to develop and react to market demands, the types of funding that businesses need must change too. New fields like aerospace technology, biotech, and advanced microchips need large amounts of startup cash and private venture investors rather than traditional bank loans. To attract these cutting-edge companies, Hong Kong should lower its stock market listing requirements. For instance, dropping the market value requirement for strategic tech firms to HK$2 billion ($255 million) from the current HK$8 billion would make it much easier for promising startups to list on the local stock market.

At the same time, mainland companies expanding overseas need advanced ways to manage their international trade, supply chains, and local currency. Hong Kong should expand tax breaks to grow the offshore renminbi bond market and work with mainland regulators to remove the daily investment limits on Bond Connect. Furthermore, allowing local retirement funds like the Mandatory Provident Fund to invest some capital in private markets and green energy infrastructure will put local savings to work, fueling future growth while likely offering better returns for Hong Kong residents.

Building stronger international partnerships

Hong Kong’s biggest geopolitical strength is its unique ability to connect disparate regions of the world. The city now needs to align its day-to-day business rules and professional standards with international norms. By fully utilizing its trusted common law system, Hong Kong can lead the way in setting regional standards for finance, law, construction, and healthcare, making it seamless for international firms to operate across borders.

On the global stage, a new Belt and Road Action Plan will help Hong Kong team up with key regional hubs like Malaysia, the United Arab Emirates, and Kazakhstan. By acting as a center for legal dispute resolution and green finance, the city can play an exemplary role in green business certifications and medical drug approvals across emerging markets. Furthermore, accelerating the city’s accession to the Regional Comprehensive Economic Partnership will help connect Southeast Asian businesses directly with the mainland’s tech and innovation networks.

Looking ahead to 2030

The HKSAR government’s first five-year plan is correct to identify that the city’s future lies in fully leveraging its competitive advantages in areas such as international finance, innovation and technology. Hong Kong’s success also lies in blending the scale of the mainland economy with the ingrained trust of the international business community. Achieving this requires clear and transparent laws, smart and dynamic commercial incentives, and ever-closer cross-border cooperation. By taking these proactive steps, Hong Kong would be well placed to protect itself against the increasingly frequent economic shocks the world faces, and thrive as a superconnector and a truly modern, high-tech hub for many years to come.

The author is a risk consultant and writer with experience in Asia-Pacific, the Middle East, and Europe.

The views do not necessarily reflect those of China Daily.