‘Not giving up on any market’: How John Lee plans to meet Hong Kong’s many challenges

Key Concepts

• Article 23: Refers to the national security legislation in Hong Kong, fulfilling a constitutional obligation outstanding for 26 years.
• Northern Metropolis: A long-term urban development blueprint for Hong Kong, spanning 15–20 years.
• One Country, Two Systems: The governing principle under which Hong Kong operates as part of China while maintaining its own economic and legal systems.
• Substandard Subdivided Flats: A long-standing housing issue in Hong Kong, now addressed through new basic housing unit legislation.
• Geopolitical Resilience: The strategy of diversifying trade markets (ASEAN, Middle East, Central Asia) to mitigate risks from global volatility and potential trade tariffs.
• Accountability: The principle of holding officials and entities responsible for public safety and governance failures, specifically regarding the Tai Po fire incident.

---

1. Economic Performance and Outlook

Chief Executive John Lee highlighted a significant turnaround in Hong Kong’s economy during his tenure:

• GDP Growth: Shifted from a negative 3.7% at the start of his term to a positive 3.5% last year. The most recent quarter saw a 5.9% growth rate.
• Income Levels: The median salary for working individuals increased by approximately 20%, rising from 19,000 to 23,000 HKD.
• Sector Performance: Tourism has seen double-digit growth, and import/export figures remain robust.
• Future Outlook: The government projects a growth rate of 2.5% to 3.5% for the coming period, despite acknowledging interim risks from global geopolitical instability.

2. Addressing Long-Standing Domestic Issues

Lee emphasized the resolution of three major "vacuum" areas that had persisted for over a decade:

• Legislative Regime: Established a new regime for car heating/transportation regulations.
• Housing: Introduced legislation to replace substandard subdivided flats, a problem that had existed for over 15 years.
• National Security: Fulfilled the obligation under Article 23, which had been outstanding for 26 years.

3. Geopolitical Strategy and Market Diversification

Lee argues that Hong Kong must remain an open economy while building resilience against external shocks:

• Diversification: While maintaining traditional markets (Europe, US, UK), the government is aggressively pursuing new markets in ASEAN, the Middle East, and Central Asia.
• Central Asia Strategy: Lee views Central Asia as a "heart of the corridor" between Asia and Europe. Recent visits resulted in nearly 100 agreements and MOUs worth approximately 1.65 billion USD.
• US Relations: Lee maintains that Hong Kong is not "giving up" on the US market. He advocates for a "B2B" (business-to-business) approach to trade, noting that the US currently holds a trade surplus with Hong Kong.

4. National Security and Governance

• Defensive Framework: Lee describes the National Security Law as a "defensive system," comparing it to a "strong door" on a house. He asserts that the law is intended to protect the city from external threats rather than to act offensively against citizens.
• Accountability: Regarding the Tai Po fire, Lee confirmed that seven individuals have been charged with 25 offenses, including manslaughter and corruption. He pledged that once an independent committee concludes its investigation, he will pursue "impartial and proportional" accountability for any government officials found negligent.

5. Integration with National Development

Lee introduced the concept of "Hong Kong plus Country" rather than "Hong Kong and Country."

• Five-Year Plan: Hong Kong is developing a five-year plan that dovetails with China’s 15th National Five-Year Plan.
• Continuity: This plan is designed to transcend individual government terms, serving as a long-term blueprint for the city’s development regardless of leadership changes.

---

Notable Quotes

• "I think of Hong Kong plus country, not Hong Kong and then country... when you do things like that, everything comes for that goal, which means common good for all the family members." — John Lee on national integration.
• "Building a strong door is not offensive. You can't complain about myself building a strong door, strong locks. That's the whole intention of the national security law." — John Lee on the purpose of security legislation.
• "I'll do anything that is possible [to make friends], but then of course, we have to wait for the opportunity to arise." — John Lee regarding potential future visits to the US.

---

Synthesis and Conclusion

John Lee’s tenure is characterized by a dual focus: stabilizing the domestic environment through legislative action and national security, and aggressively diversifying Hong Kong’s economic partnerships to survive a volatile geopolitical climate. By shifting the narrative toward "Hong Kong plus Country," Lee aims to ensure long-term policy continuity. While he remains non-committal regarding a second term, he frames his current role as a "meaningful sacrifice" and a mission to contribute to the "overall good of the family" (Hong Kong). The primary takeaway is a government strategy that prioritizes economic resilience through new market expansion while maintaining a firm stance on security and national integration.