Currently, Guangdong, Hong Kong and Macao are eagerly awaiting the release of the outline of the development plan for the Guangdong-Hong Kong-Macao Greater Bay Area.

If past experience is any guide, the outline is likely to be a framework of general plans and guidelines outlining objectives and setting a broad direction for development of the Bay Area without specifying actual operating plans and details.

Hong Kong's government will need to quickly work out "what to do" and "how to do" lists to ensure unity of knowledge and action to turn the relevant plans and guidelines into concrete action, aimed at facilitating a structural transformation of Hong Kong's social and economic development by integrating the city's development into national development.

So far, two important documents on economic integration and cooperation have been signed by relevant parties - the Framework Agreement on Deepening Guangdong-Hong Kong-Macao Cooperation in the Development of the Bay Area and Arrangement for Advancing Hong Kong's Full Participation in and Contribution to the Belt and Road Initiative.

Both documents provide details on the principle objectives and related key areas regarding Hong Kong's participation in the B&R Initiative and Bay Area project.

For instance, the B&R arrangement clearly notes the unique advantages of Hong Kong and Macao should be fully leveraged to strengthen cooperation with countries along the route.

The Bay Area agreement expresses support for Hong Kong actively participating in Bay Area development to expand its own room for social and economic development and enhance its status and function in national economic development. The Hong Kong Special Administrative Region Government's ability to fully identify opportunities brought by these national policies will decide the role Hong Kong will play and function it will serve in the B&R and Bay Area and determine Hong Kong's ability to complete structural reforms of its industries.

To consolidate the city's status as an international shipping center, the Bay Area agreement proposes a division of labor between Hong Kong, Guangdong and Macao to promote development of professional services and to establish an Asia-Pacific international legal and dispute resolution service center. The B&R arrangement also emphasizes facilitating Hong Kong developing high value-added maritime services. This entails promoting development of Hong Kong as a major international maritime service center and supporting it in providing global legal and dispute resolution services for the B&R Initiative.

Hong Kong no longer being one of the top-three international ports in terms of container throughput has led to the belief the city's shipping industry is gradually declining. But this overlooks the fact Hong Kong still maintains its leading position in the Asia-Pacific region in such areas as maritime dispute resolution, shipping finance, maritime insurance, ship management and financing. Therefore, the HKSAR Government should conduct specific research on restructuring the shipping industry soon. This is to promote structural reforms in port and maritime sectors and in advancing such reforms particularly by benefiting from the development of B&R and Bay Area. These include attracting shipping and logistics enterprises from the mainland and B&R regions to use Hong Kong's professional services, while developing the city into a diversified international shipping service center.

As for Hong Kong's high-end shipping services, the "awareness of innovation", which is one of the four expectations mentioned by the central government, is exactly the key to achieving diversification of the shipping industry. This will enhance Hong Kong's status as an international shipping center and be a prerequisite for meeting the other three expectations.

As far as a national development strategy is concerned, with ever-growing economic and trade capability, the important indicator of China's transition from a "big shipping nation" to a "powerful shipping nation" is her ability to participate in and formulate international shipping and trade-game rules.

In this regard, Hong Kong can undoubtedly play an indispensable role in maritime arbitration and mediation, by establishing a diversified dispute resolution mechanism for the B&R Initiative. At the same time, it can also develop into an international legal and dispute resolution services center.

In terms of cooperation by complementing each other to enhance benefits, the essence of Bay Area economy is its agglomeration effect. This lets cities within the region unleash their potential to complement each other and enhance their respective economic power through industrial interaction.

Guangzhou has been relying on its advanced ship manufacturing industry to develop its shipping financial service industry, whereas Hong Kong is the only world-class international shipping center without a shipping exchange. To promote initiatives for achieving free circulation of capital and information flow in the Bay Area, Hong Kong should proactively seek cooperation with the Guangzhou Shipping Exchange. It can explore and launch various shipping indices, transaction products including maritime insurance, and businesses such as capital settlement and average adjusting.

As for cultural exchanges, a focus of the Maritime Silk Road, Hong Kong plays an important role by promoting deep coordination with the shipping industries in the mainland as well as countries and regions along the Silk Road through its diversified shipping-service industry. Hong Kong can represent China when it commences cooperation in various areas including shipping policy, market regulation, shipping safety, environmental conservation and talent nurturing, which strengthen the influence and centripetal force of Hong Kong as an international shipping center.

When promoting and participating in B&R and Bay Area development, Hong Kong's shipping industry must not be left out. It should keep itself at the forefront of other industries in overcoming challenges, seizing opportunities and leading Hong Kong to restructure economically and to explore ways to achieve sustainable development in future.

http://www.chinadaily.com.cn/hkedition/2018-06/22/content_36432052.htm