Implications of Western New Industrial Policies for Hong Kong

In view of the fact that the future global economic governance model and the objectives of industrial policies will be totally different from the past, traditional export-oriented industrialization strategies are becoming less and less feasible and effective. [...] At the initial stage of the reform and opening-up, the establishment of these SEZs was aimed at forming industrial clusters and creating economies of scale by taking advantage of the export market. [...] 5 Lessons for Hong Kong’s industrial policy So what lessons can Hong Kong draw from changes in the global economic governance model and the shift in industrial policy directions in the West? First, as I wrote in this column two years ago, Hong Kong had adhered to the “big market, small government” and “active non-intervention” policies. [...] The new policy should take into account the successful development of industries in the Mainland, and particularly the backdrop of the ongoing economic and technological competition between China and the US. [...] Industries in Hong Kong can seize the opportunity presented by global economic restructuring to support these enterprises in expanding their production networks in the region and to facilitate the establishment of their regional headquarters in the SAR.