Hong Kong unveils first 5-year plan to broaden the city's identity beyond finance

HONG KONG (AP) — Hong Kong Chief Executive John Lee on Wednesday unveiled the city's first five-year plan in a politically symbolic step that echoes Beijing's approach to development, pushing to broaden Hong Kong's identity beyond international finance to also encompass technology and higher education.

In a speech to the legislature, Lee said the plan aims to make breakthroughs in economic development, enhance competitiveness, improve social well-being and achieve progress in integrating into and serving national development.

The special administrative region has long prided itself on minimal government intervention in the economy, even as officials have increasingly referenced Beijing’s vision for the city. Mainland China in March approved its 15th five-year plan for 2026 to 2030 .

Ahead of launching Hong Kong's plan, the city government said it would serve as a framework outlining the financial hub’s strategic priorities and not a planned economy, insisting the capitalist system would be upheld.

Another main goal of Hong Kong's plan is to speed up development of the Northern Metropolis, which will provide land for the innovation and technology industry and build university towns near the Chinese tech hub of Shenzhen. The proposal, first floated in 2021 by Lee's predecessor Carrie Lam, aims to provide 650,000 jobs and house 2.5 million people.

Under the five-year plan, the government hopes to boost the ratio of domestic expenditure on innovation activities to gross domestic product from 1.63% in 2024 to 3% after 2030.

The plan also includes integrating the city's industry development with academic sectors where Hong Kong holds a competitive edge in the Northern Metropolis.

Each of the three planned university towns would have its own unique position, including one focused on areas such as artificial intelligence and robotics.

The government seeks to speed up Hong Kong’s development as an innovation and technology hub, but also plans to enhance its position as a center for international finance, maritime, trade and aviation.

The city government also proposes to strengthen its role as the world's largest offshore hub for renminbi, mainland China's currency, as well as exploring the use of renminbi to settle government expenditures where appropriate.

Observers are watching whether Lee will use the five-year plan and his latest policy proposals to build momentum for a second term next year.

The former security chief fulfilled Beijing’s long-standing imperative to enact a homegrown national security law in 2024. Officials said the law and a China-imposed security law were necessary for the city’s stability following massive anti-government protests in 2019 .

Lee has been under pressure to distinguish Hong Kong from regional rivals and mainland Chinese metropolises, especially after Beijing’s tightening grip tainted Hong Kong’s image as a freewheeling financial center.