As 2026 marks the start of the 15th Five-Year Plan (2026-30), the ongoing annual two sessions in Beijing — when the strategic blueprint for the nation’s development over the next half-decade will be finalized — take on exceptional weight. For Hong Kong to effectively play its role in the national strategy, grasping the core messages of the two sessions is a prerequisite. From my point of view, to that end, the special administrative region should pay particular attention to the following key aspects that are likely to dominate the agenda.
The recommendations for the 15th Five-Year Plan, adopted at the fourth plenary session of the 20th Central Committee of the Communist Party of China, explicitly call for creating more models of economic growth that are led by domestic demand, driven by consumption, and sustained by self-generating momentum. This implies that the expansion of domestic demand will see increasing significance in the nation’s economic growth structure.
Expanding domestic demand is likely to proceed via a two-pronged approach. The first involves boosting income and improving social welfare to ensure the public has both the ability and confidence to spend. The second focuses on cultivating new consumption patterns. Buzzwords such as “silver economy”, “low-altitude economy”, and “emotional consumption” have already surfaced in provincial-level two sessions. They are expected to be high-frequency topics at the national-level two sessions as well.
Hong Kong must closely observe and analyze the impact that the national policies on boosting domestic demand will have on the city. For example, taking the Chinese mainland’s push for emotional consumption — where purchasing decisions are driven by the need for happiness, comfort, and stress relief rather than just functional value — it presents at least three distinct opportunities. First, mainland enterprises in the emotional consumption sector will look to Hong Kong for financing and leverage its international platform to go global, thereby generating new business for the city. Second, mainland visitors with high spending power will be keen to splash out in Hong Kong, driving significant visitor traffic in the city. Third, innovative consumption models on the mainland can inspire Hong Kong to reinvent its own consumption scenarios, serving as a template for the city’s consumption sector upgrade.
Ultimately, the expansion of domestic demand will have a profound impact on the city. In essence, the mainland’s levers for boosting domestic demand can serve as the very drivers for Hong Kong’s own consumption upgrade.
Following the release of the AI+ Manufacturing action plan by the Ministry of Industry and Information Technology and seven other departments, the priority given by the HKSAR government to artificial-intelligence development has been mirrored in the new Budget, which unveiled an AI+ strategy, featuring a historic HK$50 million ($6.4 million) allocation to enhance AI literacy — an unprecedented move.
Hong Kong should pay great attention to Thursday’s Government Work Report for specific measures regarding AI development, particularly in technology application, data development, and mutual recognition of international standards. Identifying collaboration points in these areas is crucial.
As an international financial center, Hong Kong is uniquely positioned to provide financing for AI ventures. Furthermore, leveraging its advantages in basic research and development, the city can build international exchange platforms and participate in the formulation of worldwide rules, synthesizing global expertise to turn its accumulated strength into tangible progress in this area.
The direction and goals for advancing high-standard opening-up are already clear. Through the two sessions, we should be able to identify the focus points.
As an international financial center, Hong Kong is uniquely positioned to provide financing for AI ventures. Furthermore, leveraging its advantages in basic research and development, the city can build international exchange platforms and participate in the formulation of worldwide rules, synthesizing global expertise to turn its accumulated strength into tangible progress in this area
Taking unilateral opening-up for example, there are suggestions on optimizing visa-free policies. Proposals include expanding the number of visa-free transit points for foreign nationals to allow multiple entries between Guangdong province, Hong Kong, and Macao during the visa-free period. There are also calls for a regional single visa mechanism, allowing international tourists to travel freely across all 11 cities in the Guangdong-Hong Kong-Macao Greater Bay Area, thereby enabling seamless mobility within the one-hour living circle.
Turning to the deepening of Belt and Road Initiative cooperation, a consensus has emerged at all levels: The focus should shift from “product trade” to “industrial synergy”. Some have suggested deepening financial connectivity and strengthening the financial support system; others have proposed improving the full-chain risk prevention and control system and establishing a cross-border risk co-governance mechanism; still others called for intensified cooperation in areas such as green minerals, clean energy, the digital economy, and AI.
As a designated power source, or engine, for high-quality national development, the Greater Bay Area still has significant room to improve its interoperability.
In transportation, discussions are expected to focus on increasing direct high-speed rail services between Hong Kong’s West Kowloon Station and more mainland cities, operating them with the frequency of public transport. Pilot plans such as “cross-border vehicles completing multiple checkpoints at one go” and “collaborative inspection and joint clearance” for cross-border private cars may also be explored.
Financial connectivity could see breakthroughs, such as a mechanism allowing mainland residents to open bank accounts in Hong Kong without coming to the city.
In the realm of social welfare, “cross-border elderly care” is a pressing topic. Solutions may include supporting nongovernmental organizations to establish service centers in Greater Bay Area mainland cities and act as guardians, thereby addressing the challenges of admission to residential care homes for the elderly, alongside promoting policy alignment, standards convergence, and the mutual recognition of medical qualifications across the region.
The national two sessions serve as a crucial window for observing the prospects, trends, and strategies of national development. By thoroughly understanding and deeply analyzing these and other key messages from the two sessions, Hong Kong can better align its development with national strategies to play a more significant role, and contribute to and benefit from national development.
The author is vice-chairman of the Committee on Liaison with Hong Kong, Macao, Taiwan and Overseas Chinese of the National Committee of the Chinese People’s Political Consultative Conference, and chairman of the Hong Kong New Era Development Thinktank.
The views do not necessarily reflect those of China Daily.
