Renowned economist Jeffrey Sachs cast the Hong Kong Special Administrative Region as the epicenter of transformative economic and technological growth in the coming decades.

Speaking at the University of Hong Kong (HKU) on Sunday, Sachs said the city is at “the center of the next volcanic growth”.

The Columbia University professor said the city is “once again right in the center of things in a very positive way”. Sachs highlighted the SAR’s pivotal role within the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and the broader global economy as examples.

READ MORE: Jeffrey Sachs: HK to play leadership role in global sustainable development

Sachs, who is also president of the UN Sustainable Development Solutions Network, spoke as a “prophecy economist” at a Distinguished Lectures event, jointly held by the Centre on Contemporary China and the World of the HKU, the HKU Jockey Club Enterprise Sustainability Global Research Institute, and the HKU Business School.

Sachs emphasized the unparalleled dynamism of the Greater Bay Area, where 87 million people reside in “the single most dynamic part of the world economy”. He described this cluster as “the world’s most productive”, and underlined its strategic advantage in green and digital technologies.

“What this region leads in is green technologies, photovoltaics, renewable energy, smart grids, digital connectivity, electric vehicles, battery supply chains, robotics, artificial intelligence (AI),” all of which will dominate the global economy for “at least one generation, probably two”, Sachs said.

Addressing criticisms from Western observers who describe the Greater Bay Area’s production capacity as “overcapacity,” Sachs dismissed such concerns as expressions of “pure jealousy”.

He said that the “world needs all of this” industrial output, particularly in renewable-energy sectors pivotal to climate change mitigation. He challenged Hong Kong’s financial community to capitalize on this by facilitating investment to amplify exports and global supply chains.

“If the solar industry in China can export twice what it does right now, which it can, it is Hong Kong’s job to make that possible,” Sachs said.

During the first half of 2025, China installed more than twice the solar capacity of the rest of the world combined, accounting for 67 percent of the global additions in that period. The momentum of expansion is expected to be strong, with projections reaching around 2,700 gigawatts by 2030.

China exports solar products to a broad range of markets, with India taking 48 percent of exports. The solar module exports remain the majority but have slightly declined by 5.2 percent in the first half of 2025, while cell and wafer exports grew by 76 percent and 26 percent year-on-year respectively.

Sachs also highlighted HKU’s role as a leader in regional cooperation and innovation collaborations. In collaboration with Shenzhen and other Greater Bay Area cities such as Dongguan and Guangzhou, the universities in Hong Kong, especially HKU, are spearheading initiatives to integrate academic, business, and government efforts toward sustainable economic transformation.

Sachs, 70, was one of the US economists who introduced venture capital market into China in the early 1980s. He marveled at China’s burgeoning innovation centers in the Greater Bay Area and Hangzhou, both of which in many ways exceed Silicon Valley in the US state of California.

He underscored a major recent development called the GBA-ASEAN Initiative, a partnership that links China’s productive capacity with the 700 million residents of the 11 economies within the Association of Southeast Asian Nations (ASEAN). Launched jointly in Hong Kong and Shenzhen, the initiative aims to accelerate energy transformation and strengthen digital and AI collaborations under the upgraded China-ASEAN Free Trade Area 3.0 agreement.

Despite his optimism, Sachs cautioned against complacency. He warned about persistent geopolitical misunderstandings, particularly concerning US-China relations.

READ MORE: Hong Kong registers 3.8% GDP growth in Q3, most since 2023

“China cannot be contained,” Sachs said. He called for moving beyond “confusion” and fostering genuine partnership between the two powers to avoid risks and promote stability.

He expressed strong confidence in Hong Kong’s unique position: “What we have here offers not only an opportunity for your own prosperity and well-being over the coming generation, but … will shape the world in the way it needs to be transformed into an environmentally sustainable and highly productive future economy.”

He envisions Hong Kong as a vibrant hub, driving the green and digital economies globally, reinforced by regional collaboration, innovation, and strategic finance to meet global climate and economic challenges head-on.

Contact the writer at jessicachen@chinadailyhk.com