The third plenary session of the 20th Central Committee of the Communist Party of China affirmed that the overall objectives of further deepening reform comprehensively are to continue improving and developing the system of socialism with Chinese characteristics and modernize China’s system and capacity for governance. During the meeting, the Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization was adopted. It emphasized that Hong Kong, in addition to leveraging the advantages of “one country, two systems”, must also deepen cooperation in the Guangdong-Hong Kong-Macao Greater Bay Area, and strengthen regulatory alignment and institutional connectivity.

Hong Kong bears a significant mission in promoting and coordinating regional development in the Greater Bay Area, as well as in deepening reform and opening-up. Hence, Hong Kong can better integrate itself into the country’s high-quality development and maintain long-term prosperity and stability. The Greater Bay Area operates under the “one country, two systems, and three legal jurisdictions” framework, and features “three customs territories and three currencies”. This unique setting distinguishes it from other global bay areas, such as New York and Tokyo.

The complex institutional differences enable participants across the Greater Bay Area to capitalize on their respective advantages. However, they also suggest that room for improvement is needed in regulatory uniformity and the efficiency of factor mobility. In addition, variations in legal systems, capital flows, and industry qualifications hinder the free flow of factors and optimal resource allocation, posing a bottleneck to the high-quality development of the region.

In order to tackle these barriers, Article 27 of the third plenary resolution proposes to deepen cooperation in the Greater Bay Area by strengthening regulatory alignment and institutional connectivity. The implementation of unified regulations in the Greater Bay Area serves as a pioneering and practical exploration for the State to align with international standards, providing a vital demonstration in promoting institutional openness. As a global metropolis, Hong Kong has the distinctive advantages of enjoying strong support of the motherland and being closely connected to the world. Having direct access to the huge Chinese mainland market and strong international connectivity at the same time, Hong Kong serves as a bridge linking the mainland and the rest of the world. For instance, in healthcare, Hong Kong can assist the national healthcare service industry in aligning with international regulations while introducing advanced foreign technologies and management models to the Greater Bay Area. This creates a win-win situation for high-quality development.

Hong Kong must gain an in-depth understanding and respond to the spirit of the third plenary session, with a view to dismantling institutional barriers and enhancing innovation-driven initiatives. It should proactively align with the national 14th Five-Year Plan (2021-25), contributing what is needed for the country’s development

The free flow of factors is a key driver of regional economic integration. To this end, it is recommended to support research aimed at expanding the Greater Bay Area free trade zone. This would facilitate pilot projects over a broader area and utilize the innovative institutional model of the free trade zone to eliminate existing investment and trade barriers.

For example, enterprises from Hong Kong and Macao registered in the Hengqin, Qianhai, and Nansha free trade zones are currently allowed to negotiate the resolution of contractual disputes using foreign laws, as long as they do not violate fundamental national legal principles. This means that Hong Kong and foreign businesses can agree to apply Hong Kong law to civil and commercial contracts and submit commercial disputes to arbitration in Hong Kong. Expanding the scope of the Greater Bay Area free trade zone can help bridge institutional differences and transform them into robust momentum for high-quality development in the whole Greater Bay Area and Hong Kong.

The development of the Greater Bay Area has been accorded the status of key strategic planning in the country’s development blueprint, having great significance in the country’s implementation of innovation-driven development and commitment to reform and opening-up. As a participant, promoter and beneficiary of the Greater Bay Area, Hong Kong must gain an in-depth understanding and respond to the spirit of the third plenary session, with a view to dismantling institutional barriers and enhancing innovation-driven initiatives. It should proactively align with the national 14th Five-Year Plan (2021-25), contributing what is needed for the country’s development. In the foreseeable future, Guangdong, Hong Kong and Macao are bound to achieve a higher level of integrated development, becoming a global hub of innovation, a center for modern services and a gathering place for international talent. The three regions will reap the dividends of high-quality development in tandem with their contributions to the country.

The author is a Hong Kong deputy to the National People’s Congress and a Legislative Council member.

The views do not necessarily reflect those of China Daily.