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Guangdong-Hong Kong-Macao Greater Bay Area: Connecting Belt of the Dual Circulation

The Guangdong-Macao In-Depth Cooperation Zone in Hengqin has a special status in China and even in the world. The Hong Kong-Zhuhai-Macao Bridge (HZMB) is directly connected to Hong Kong, the world’s top free port. The entire Greater Bay Area is home to several national pilot zones, all of which aim to link the internal and external cycles effectively. Hong Kong and Macao, as China’s external-cycle platforms, are part of an offshore economic system. They are increasingly important for global and Chinese businesses. Over the past four decades, Zhuhai and Shenzhen have both achieved remarkable development, mainly in manufacturing and urbanization. It is vital for regional development to attract top international talents. Hong Kong and Macao have advantages over other regions, firstly because of their well-developed offshore financial markets. Secondly, these advantages are underpinned by a legal system with a capitalist lifestyle and an internationalized business environment. The Greater Bay Area has the potential to provide the world’s best living and working environment. However, the advantages vary in different areas. For example, Shenzhen is a center of technological innovation, while Hong Kong is a financial center with a highly developed, international, and accessible environment yet limited space. Therefore, the challenge for the Greater Bay Area is how to leverage these regional advantages in an integrated manner.

Exploring New Models of the Connecting Belt of the Dual Circulation

The key to attracting talents and enterprises is to figure out how to adhere to the “One Country, Two Systems” policy while enabling enterprises to enjoy the advantages of both systems. The State Council has issued the plan for Shenzhen Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone (HTCZ), aiming to enable enterprises to enjoy the space and market of the Mainland as well as the flexible system in Hong Kong. It is clearly stated in the plan that this place is built to become a world-class scientific innovation hub, interconnected with the Guangzhou-Shenzhen-Hong Kong and Guangzhou-Zhuhai-Macao areas.

Institutional Innovation in the Greater Bay Area: Dual Headquarters Connecting Dual Circulation

It is particularly emphasized in the plan for Shenzhen Park of the HTCZ that scientific and technological innovation and institutional innovation should be promoted simultaneously. The dual headquarters mechanism is an institutional innovation. Under this mechanism, the two areas can share tax revenues, which means that there is a need to change the competitive relationship between the two regions into a cooperative and sharing relationship.

Implications of Corporate Dual Headquarters Mechanism Innovation for the Future Development in Hengqin

Due to its nodal position on the HZMB, Hengqin is of extreme strategic importance. It’s essential to realize the interconnectivity between Hengqin and its neighboring cities through the dual headquarters mechanism. Therefore, Hengqin should maintain close ties with Macao and neighboring cities, including Shenzhen and Zhongshan.