The 16th Plenary of Hong Kong/Guangdong Cooperation Joint Conference was held in Hong Kong on Sept 16, witnessing the signing of eight letters of intent and cooperation agreements after the meeting. Guangdong province Governor Zhu Xiaodan indicated that he had proposed to central government the establishment of a "Guangdong, Hong Kong and Macao Free Trade Area", to compete with the Shanghai pilot free trade zone. In this respect, Hong Kong must be prepared to actively play to its, and the local region's, strengths.

The relationship between Hong Kong and Guangdong has always been a close one. We should pay particular attention to a large-scale infrastructure plan - a transportation network that would create a two-hour living sphere within the province. A new highway network would strengthen the connection between cities, especially the less well off; furthermore, Zhu envisages the rapid development of a Guangzhou-centered metro network, including a connection to Hong Kong's MTR.

Although wealthy as a whole, Guangdong province still has poor areas, in its northern, western and eastern parts. In order to eliminate poverty, the development plan will facilitate transportation to the remote and border areas, so it will take less than two hours to reach cities like Yunfu, Heyuan and Qingyuan from the central Pearl River Delta (PRD) area. Thus, resources in the central area can be shared to promote economic and social development.

As for underground transportation plans in Guangzhou, the HK$215 billion project will contain 12 new routes with a total length of 280 km. The new design anticipates future connection with Hong Kong's transportation, enabling a more convenient communication between the two places.

As far as I know, the Shantou to Zhanjiang highway is the most featured among all transport network plans. Starting from Shantou in eastern Guangdong, the Shantou-Zhanjiang Highway covers an overall length of more than 860 km, by way of Meizhou, Jieyang, Heyuan, Huizhou, Guangzhou, Qingyuan, Zhaoqing, Yunfu, Yangjiang and Maoming, and ends with Zhanjiang in western Guangdong, being the first artery to traverse the province. Connecting the 12 cities will accelerate the integration of the remote areas with the economic development of the PRD area.

As planned, the main line will be wholly opened to traffic by 2019. And some of the sections, including the 83.9-km Heyuan section, are under construction and will be finished in 2015. We can already predict the considerable economic effects brought by this artery.

Shortening the distances among the main cities provides more investment options for foreign companies, too, all of which can help balance the economic disequilibrium prevalent in different parts of the province.

As a member of the business circle, I have several concerns: What kind of business opportunities will the two-hour living sphere bring to Hong Kong, as it forms? As transportation becomes more convenient, will the checkpoints and traveling facilities, be able to meet requirements? Guangdong's economy is growing vigorously, so in what way can Hong Kong enjoy the "free ride" of its development? And how can Hong Kong grab the chance to open up new markets for our products and services? I believe these are the key discussion topics for the SAR government and business core members.

The author is vice-president of the Chinese Manufacturers' Association of Hong Kong.

(HK Edition 10/05/2013 page5)