Date: Mar 19, 2024

On Mar 19, 2024, Consul General of India to Guangzhou Mr. Shambhu Hakki visited CDI. Discussion focused on China’s macro-economic outlook, Guangdong’s economic development, and Sino-India trade relations. Given the growing trade activities between China and India, research should be conducted to identify industrial cooperation opportunities and formulate policies and mechanisms in order to deepen the bilateral economic cooperation amid global uncertainties.

Date: Dec 7, 2023

Authors: XIE Laifeng¹, TAN Huifang², ZHUANG Zhuohao³, and MO Dilang³

Due to the unique “One Country, Two Systems” framework, institutional innovation that facilitates the free flow of production factors strengthens inter-governmental cooperation and promotes the cooperative development of the economy and industries has become key to advancing the construction of the Guangdong–Hong Kong–Macao Greater Bay Area (GBA). Within the GBA, Guangzhou and Hong Kong’s success in cross-border equine industry cooperation has been empowered by the two cities’ continuous exploration of institutional innovation. This article systematically examines their experiences and presents policy improvement suggestions based on the future development needs of the cross-border equine industry.

In support of the equestrian events of the Guangzhou 2010 Asian Games, the construction of the equestrian venue and the establishment of the country’s first equine disease-free zone (EDFZ), which was certified by the World Organisation for Animal Health and the European Union, was completed in Conghua District, Guangzhou. Following the Asian Games, to maximize the usage of existing resources and facilities, the Guangzhou municipal government introduced the Hong Kong Jockey Club (HKJC) to Conghua, which later converted the equestrian venue into the Conghua Racecourse. In August 2018, The HKJC Conghua Racecourse officially opened for operation, becoming Mainland's first racecourse and thoroughbred horse training center to meet international standards. As the equine industry cooperation between Guangzhou and Hong Kong deepened, the two cities signed the Co-operation Agreement between Guangdong and Hong Kong on Equine Industry Development in May 2021, and since have steadily advanced major projects such as an international horse-trading platform and international equestrian sports events.

After examining the cooperation process within the Guangzhou–Hong Kong equine industry, it became evident that amidst the development of the GBA, some of the regulatory measures presented challenges that hindered the cross-border flow of production factors between Hong Kong and the Mainland which was fundamental for further industrial development. Therefore, governmental-level institutional innovation became imperative. The institutional innovation in the Guangdong–Hong Kong equine industry cooperation is illustrated in the following four areas.

First, regarding government cooperation mechanisms, designated task force and leadership groups were created. The Guangdong–Hong Kong Equine Industry Cooperation Task Force, established under the Hong Kong/Guangdong Co-operation Joint Conference mechanism, can collaboratively plan the coordinated development of the equine industry in the GBA at a higher level and serve as an important medium in addressing challenges that emerged during the development process in a targeted manner. Additionally, the task force promotes exchanges among relevant enterprises, institutions, and personnel between the two locations. Guided by the task force, Guangzhou and Conghua have each established leadership groups for the equine industry, collaboratively advancing the implementation of various initiatives for the development of the Guangzhou–Hong Kong equine industry.

Second, in terms of customs clearance, the introduction of the “one-time approval, multiple round trips” registration and filing system, which allows horses multiple entries and exits to Guangzhou during a validity period, has created a new model for cross-border horse transportation within the GBA. Furthermore, the exchange of horses between the two locations is safeguarded by the establishment of unified inspection standards and a recognition mechanism for inspection and quarantine testing results. Lastly, Guangzhou Customs has established a dedicated office at the Conghua Racecourse to implement biosecurity surveillance and controls to guarantee the security of the EDFZ and cross-border horse transportation.

Third, the collaborative effort of Hong Kong’s Agriculture, Fisheries and Conservation Department and mainland authorities, including Customs, Ministry of Agriculture and Rural Affairs, and provincial, municipal, and district governments, was fundamental to the pioneering establishment of an EDFZ that spans the entire Conghua District and the innovative inclusion of a biosafety highway that enables the direct transfer of horses between Conghua and Hong Kong. 

Fourth, the Guangzhou municipal government has delegated foreigner visa issuance to Conghua, allowing foreign employees of HKJC to apply for visas nearby. With the assistance of the Guangzhou Municipality, the children of non-Guangzhou Hukou talents employed by the HKJC who meet the prescribed conditions can enroll with their nearest compulsory education provider without taking entrance exams.

The equine industry cooperation between Guangzhou and Hong Kong has yielded fruitful results; however, to maximize cooperation in the cross-border equine industry chain, both Guangzhou and Hong Kong must continue to explore more substantial institutional innovations.

Firstly, increased facilitation to smooth the movement of horses and clearance of associated goods is needed. Examples include streamlining the clearance process, establishing a normalized emergency response mechanism, and establishing dedicated control stations at both the origin and destination points of cross-border horse transportation routes.

Secondly, to facilitate the international horse-trading platform and international equestrian events, proactive policy arrangements should be made so registered foreign veterinarians can provide veterinary services in Guangzhou and Conghua.

Thirdly, further research into creating a mechanism that promotes international mutual recognition of inspection and quarantine findings is needed to allow foreign horses to transit the Conghua EDFZ which is critical for hosting international equestrian events. 

Lastly, introducing and nurturing talent in the equine industry is vital. It is recommended that to strengthen talent training in the equine industry further, support be provided to relevant universities to build faculties focused on the modern equine industry. Additionally, the facilitation of HKJC’s foreign employees working and living in Guangzhou should be continued, professional qualifications recognition be supported, and industry professionals be enabled to enjoy preferential personal income tax policies within the GBA.

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1. Deputy Director, Department of Hong Kong, Macao and Regional Development, CDI
2. Lecturer, School of Economics and Management, Xiangnan University
3. Project Research Fellow, Department of Hong Kong, Macao and Regional Development, CDI

Date: August 21, 2023

Author: Dr. LI Enhan and Ms. ZHUO Shengling, China Token Digital Economic Research Center, CDI

When discussing the rapid advancement of artificial intelligence, it undoubtedly marks the dawn of a new era in technology. It is set to become a key force driving a new wave of technological revolution and industrial transformation. Shenzhen has released a corresponding action plan and the initial roster of "City + AI" application scenarios, while also establishing a substantial 100 billion CNY fund dedicated to artificial intelligence.

Overview of the global competition in artificial intelligence

On a global scale, the competition in artificial intelligence has become a pivotal area where countries vie for dominance. Leading technological powers like the United States, the European Union, and China continue to intensify their investments and strategic positioning in the AI domain.

The United States stands out for its strategic leadership, substantial capital support, and technological edge. Consistently investing in policies and research in AI, it aims to retain its global leadership. In recent years, the U.S. has introduced a series of significant policy documents, emphasizing funding particularly in technological applications in national defense.

The European Union prioritizes safeguarding fundamental rights and leads the way in establishing regulatory frameworks for artificial intelligence. Its focus lies in preventing technological development from potential erosion of human rights, exploring the establishment of a regulatory system, and ensuring the safety of artificial intelligence technology and applications within the EU. Additionally, Europe holds significant advantages in applying AI technology to manufacturing and industrial automation.

With abundant data resources, robust technological foundations, and strong policy support, China's AI industry thrives, unveiling innovative application scenarios continuously. China has also shifted its policy focus from industrial development towards technological regulation and governance, emphasizing the balance between technological oversight and industrial growth. Moreover, it actively publishes ethical guidelines and policy documents to ensure that the advancement of artificial intelligence does not compromise national security or societal order.

The development of the artificial intelligence industry in China’s major cities

Major cities in China are actively exploring various initiatives to become leaders in global AI development, each following its unique development path.

Beijing, leveraging its vast talent pool, outstanding technical prowess, and innovative atmosphere, has issued multiple policies to encourage the development of the AI industry, striving to build itself as an innovation hub for AI.

Shanghai, with a primary advantage in application-driven innovation, extensively applies AI technology across economic, societal, and governance domains within its digital transformation efforts, and strives to create an artificial intelligence “Shanghai hub”.

Shenzhen aims to become a significant player in the global AI arena. The city government has introduced numerous policies and plans while establishing a 100 billion CNY AI fund to foster a comprehensive development environment. Supported by the electronics and information industry, Shenzhen focuses on breakthroughs in core technologies, accelerating the introduction and development of key industries, and attracting numerous enterprises to enter various levels of the artificial intelligence industrial chain.

Next steps for Shenzhen

Shenzhen's future in AI development will center around three core directions. Firstly, there's a push for a deeper integration of artificial intelligence technology with the real economy, especially the industrial manufacturing. This involves adhering to the objective laws of technological development and steering clear of excessive exaggeration or speculative practices. The focus should be on strengthening collaborative innovation between foundational research and industrial applications. Additionally, there's a drive to integrate AI technology with infrastructure construction. It's vital to leverage industrial funds as well, ensuring continuous updates and iterations to expedite technological maturity.

Secondly, effectively leveraging both market initiative and government guidance is critical. Shenzhen's market-oriented environment, exceptional business atmosphere, and favorable policies are vital to spark innovation among market entities in artificial intelligence. At the market level, it is imperative to give full play of the advantages brought by major enterprises and platforms in terms of technology, data, and integrated ecosystems. Regarding the government’s role, there should be continual increments in investments in new infrastructure, orderly progression in open sharing of public data, and exploration of cross-border data circulation between Shenzhen and Hong Kong.

Ultimately, the crux of advancing artificial intelligence lies in finding a balance between innovation and security. This entails ensuring the safety and sustainability of AI innovation through three primary aspects: rigorous compliance with pertinent legal regulations, emphasis on integrated development, and exploration of ethical standards alongside policy frameworks.

Date: Feb 27, 2024

Consul-General of New Zealand in Guangzhou Ms. Rachel Crump visited CDI on February 27, 2024. Discussion surrounded topics such as New Zealand and Guangdong’s trade relation, Shenzhen’s economic development, and the trends of electric vehicles in China. Dr. Guo Wanda, Executive Vice President of CDI, provided an overview of BYD’s development since its establishment in Shenzhen in 1995. With the strong economic and trade ties between New Zealand and China, both sides agree to explore and expand the scope of cooperation in such areas of digital economy, digital trade, and green energy in the future.

Date: Jan 31, 2024

From 21st to 26th Jan 2024, Prof. Fan Gang, President of China Development Institute, was invited by the Government of Hong Kong Special Administrative Region to visit Hong Kong and conduct in-depth exchange with government officials, including Financial Secretary Mr. Paul Chan Mo-po and President of the Legislative Council Mr. Andrew Leung, and various HKSAR departments discussing Hong Kong’s latest trends of political, economic and social developments.

Although Hong Kong was faced with external challenges, its economy saw steady growth in 2023. Stable increase of net fund inflow into the stock market and expansion of the scale of asset and wealth management showed that investor’s confidence in Hong Kong international financial center remained strong. Looking forward, Hong Kong will continue to strengthen its ties with the international market, further integrate within the Guangdong-Hong Kong-Macao Greater Bay Area, while transforming itself into a hub for innovation and technology development.

During his visit, Prof. Fan attended the Asian Financial Forum and chaired the panel discussion on “Stewarding China’s New Chapter”.

Date: November 13, 2023

CDI joined hands with the City of London Corporation and the China Chamber of Commerce in the UKin hosting the forum on Sino-British relations and China’s economic outlook on November 13^th in the UK. The forum centered on fostering trust and consensus between China and the UK, delving deep into discussions regarding China's economic growth prospects, opportunities and potential risks for Sino-British relations and financial collaboration.

The forum drew over 200 delegates from government, business, and academic circles. Key speakers included Prof. Fan Gang, President of CDI, and the Lord Mayor of the City of London, Prof. Michael Mainelli. Prof. Fan Gang centered his address on the prospects for China's economic development, emphasizing the progress of China's post-pandemic economy and society while advocating for further openness and collaboration. Lord Mayor Prof. Mainelli also underscored the significance of fostering a stable relationship between China and the UK. He further encouraged active trade and investment interactions, aiming to pave the way for a new chapter in Sino-British relations.

During CDI’s visit to the UK, the delegation conducted a series of academic seminars and visited several prominent British institutions, including the City of London Corporation, the Bank of England, Z/Yen Group, Scottish Development International, and the Scottish Financial Enterprise.