Source: Katarina Krempova¸ PKF Malta
China’s economic ambition has always been linked to the creation of its new strategic opportunities with the aim to achieve prosperity and global competitiveness. To become a truly “moderately wealthy” nation¸ the China’s National 12th Five Year Plan¸ which came into effect on 18th October 2010¸ was introduced in March of this year.
This plan contains 56 high-level goals and objectives which are especially related to Innovation & Technology and Knowledge-based Economy in order to build an innovation and knowledge-oriented country. The intention is to enable China to become a power in science and technology by developing national innovation system¸ by training and recruiting innovative employees and by producing value-added products using a high-tech technology. And this is the emphasis that should drive China’s sustainable development instead of export.
In order to achieve quality growth¸ China will face tremendous challenges concerning improvement in its educational system¸ in its standard of living and in its green development. This should bring for example innovative talent pool¸ real wage increases¸ expansion of citizen’s participation in politics¸ creating new jobs¸ optimization of industrial structure¸ improving renewable energy¸ decreasing wasteful water¸ etc.
In addition¸ other special attention will be given to a gap between rural and urban residences. Chinese government will focus on coordinated regional development concerning a real improvement of opportunities outside big cities and movement of resources out of the metropolitans. “For example¸ large universities and research centres can be moved out of those big cities¸ so that not everything is concentrated in these areas. As a result¸ the migrant population will not always flow to big cities¸” said Prof. Schimizu¸ an expert on China’s economy.
Government is also planning to support development of Hong Kong instead of cities like Beijing or Shanghai.
In August of this year¸ new policies and measures have been adopted in the interest of strengthening financial and trade cooperation between the mainland and Hong Kong and of supporting Hong Kong’s progression. “It is in Hong Kong’s need and China’s need that Hong Kong continues to bring out the unique advantages it has developed over the years and play its irreplaceable role in the mainland’s reform¸ opening-up and modernization drive¸ ” said Chinese Vice Premier Li Keqiang in his speech on 17th August 2011.
Moreover¸ a large number of measures are connected with Hong Kong’s role as an international financial¸ trading¸ logistics and world-class innovation and technology centre.
Following financial measures¸ the launch of Hong Kong’s exchange-traded fund (ETF) on the Mainland Market¸ which announcement has been in progress¸ should encourage mainland investors to access stocks listed in Hong Kong.
Through government support¸ Hong Kong should be transformed into an offshore Renminbi (RMB) centre toward an expansion of RMB circulation chann