To Lead Greater Bay Area Integration, Hong Kong Can Look to San Francisco

Hong Kong’s proposed five-year-plan for economic and social development has sparked debate on how to drive regional cooperation in the Greater Bay Area. The city would do well to study the lessons from San Francisco’s experience in building a collaborative governance framework.

The challenges facing Hong Kong are not dissimilar from those faced by Silicon Valley’s pioneers. The influx of talent and capital has brought about issues such as housing shortages and environmental degradation, which require coordinated approaches across multiple jurisdictions. Recognizing this need for cooperation led to the establishment of the Association of Bay Area Governments (ABAG) in 1961.

The ABAG’s success lies in its ability to provide a stable institutional framework that bridges different legal and regulatory systems. By pooling resources and expertise through joint powers agreements, member cities and towns have created a unified policy platform, enabling them to tackle common challenges more effectively than if they had acted alone. Hong Kong would do well to replicate this model.

Cooperation in the Greater Bay Area remains hampered by differences in governance systems under the “one country, two systems” framework. Businesses and public agencies still face significant friction in areas such as cross-border data sharing, funding, and regulatory compliance. To truly make good use of key cooperation platforms, Hong Kong needs to create an institutional structure that can handle disputes, align expectations, and sustain cooperation.

The experience of Shenzhen’s 15th five-year plan underscores the need for alignment of rules, standards, and institutional frameworks in the Greater Bay Area. Nationally, China’s 15th five-year plan emphasizes advancing the Greater Bay Area through enhanced regional integration. However, Hong Kong’s proposed five-year-plan lacks specificity on how to achieve this goal.

To overcome these challenges, Hong Kong should focus on building a stable governance structure that can bridge different systems and facilitate cooperation. This requires going beyond technical aspects and establishing common standards and governance mechanisms. By drawing from the Bay Area’s example, Hong Kong can create a more effective framework for regional integration.

The proposed five-year-plan places significant emphasis on technical solutions to drive regional cooperation. While these efforts are essential, they often fall short in addressing deeper institutional and governance challenges. Focusing solely on technical aspects risks creating platforms that lack a stable foundation for sustained collaboration.

Successful integration requires more than just technical fixes; it demands a commitment to shared governance structures and common standards. Hong Kong must recognize that regional cooperation is not solely about facilitating data sharing or regulatory compliance, but also involves creating an institutional framework that can handle disputes and align expectations.

The concept of regional cooperation in the Greater Bay Area has its roots in China’s economic reforms of the late 1970s. The establishment of the Shenzhen Special Economic Zone marked a significant shift towards market-oriented development, but it also created new challenges for governance. Hong Kong’s integration into the Greater Bay Area must be seen as part of this broader historical context.

The experience of other regions in China, such as the Yangtze River Delta, offers valuable lessons on how to manage regional cooperation. By studying these examples, Hong Kong can avoid repeating mistakes and create a more effective framework for collaboration.

Hong Kong’s proposed five-year-plan is not just about economic development; it also has significant implications for the city’s governance structure. The emphasis on regional cooperation requires a shift towards shared governance mechanisms and common standards. By building on the Bay Area’s experience, Hong Kong can create a more stable institutional framework that bridges different systems and facilitates cooperation.

However, this will require a fundamental change in how the city approaches governance. Instead of viewing regional cooperation as solely an economic issue, Hong Kong must recognize its importance for creating a more resilient and adaptable governance structure. By doing so, the city can overcome the challenges facing the Greater Bay Area and create a more sustainable future for its citizens.

To succeed, Hong Kong must prioritize building a shared governance structure that can handle disputes and align expectations. This demands a commitment to creating an inclusive decision-making process that engages all stakeholders in the Greater Bay Area. By doing so, the city can create a more effective framework for regional integration and overcome the challenges facing the region.