In HK's latest policy blueprint, 'one country' trumps 'two systems'

Chief Executive’s economic strategy binds city’s destiny even more tightly to China’s

- Magdalene Fung

Chief Executive John Lee bound Hong Kong’s destiny even more tightly to China’s when he announced several measures to drive the city’s economic growth.

In his policy address on Sept 17, Mr Lee stressed that the mainland is the source of the city’s biggest opportunities in a changing world.

The annual address — the leader’s penultimate policy speech in his five-year term — outlines the blueprint that will chart Hong Kong’s direction in the year ahead.

“The well-being of our people is intimately linked to the health of our economy, making economic growth the key driver of livelihood improvement,” Mr Lee said at the start of his three-hour speech at the Legislative Council.

“In the past, we focused primarily on bringing in enterprises, achieving remarkable growth and success. The new opportunities ahead for Hong Kong, however, will come from helping mainland enterprises expand abroad.”

While Hong Kong has progressively deepened ties with its motherland, the thrust of the Chief Executive's previous policy speeches had traditionally been most focused on economic initiatives that were more centred around the city itself.

In his maiden policy blueprint in 2022, Mr Lee homed in on measures to bring fresh global talent and strategic enterprises into Hong Kong after an exodus of expatriates and multinational companies following the Covid-19 pandemic. In 2023, he slashed longstanding property curbs in an effort to reverse a sharp downturn in the real estate market. In 2024, he cut a longtime liquor tax and instituted Muslim-friendly facilities in hopes of improving sluggish consumption and declining tourism.

PRIORITISING TIES

But in the 2025 policy address, almost every major economic measure appeared to hinge on Hong Kong’s relationship with mainland China, inching progressively towards prioritising the “one country” aspect of the city’s “one country, two systems” framework.