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    Greater China
     Nov 6, 2009
China's sleepy Hengqin wakes up
By Kent Ewing

HONG KONG - As central planners dream of further integrating the former Western-run territories of Hong Kong and Macau into China's rich Pearl River Delta region, relatively sleepy Hengqin island has been given a big wake-up call.

The largely undeveloped island, until now a piece of Guangdong province under the jurisdiction of the city of Zhuhai, bordering Macau, is slated for a major makeover as a resort paradise, featuring golf courses, theme parks, water sports, hiking trails and other tourist attractions.

Hengqin is three times the size of Macau, Asia's gambling capital and its immediate neighbor to the east, and development of the island could add significantly to tourist attractions in the region. The potential of developing Hengqin has long been recognized. Three years ago, Las Vegas Sands, which has casino interests in

  

Macau, described plans to invest US$1 billion in a resort complex on the island. In the event, gambling is ruled out in the development plan approved by the State Council in late August.

Under the most recent proposals, development of more than half of the island's landmass of 106.46 square kilometers will be prohibited, making it a rare eco-friendly patch of China.

But tourism is only part of the Hengqin story.

While the development plan envisages a family-oriented leisure and resort center for the southern part of the island - a perfect complement to nearby Macau's high-stakes, hard-edged gambling and adult entertainment - a first-class science and technology zone is planned in the north, and the University of Macau is building a new 1.2 billion patacas (more than US$150.3 million) campus, scheduled for completion in 2012, in the east.

Official projections show Hengqin's current population of 4,000 growing to 200,000 by 2020 and per capita gross domestic product, now the equivalent of about US$1,200, increasing to more than $29,000 by that time.

Those are the kinds of figures that make potential investors interested, and 200 of them gathered last week at Hong Kong's Island Shangri-La Hotel to listen to Chinese officials wax strong about their vision of another kind of Shangri-la that they hope to build on Hengqin.

The ambitious plan for the island, outlined in official communiques last summer, was laid out in greater detail for the well-heeled audience in Hong Kong. The fact that a high-ranking official for the National Development and Reform Commission, Fan Hengshan, was on hand to make his own personal pitch for the project lent it additional weight.

"This is a new creative model to bring out the best features of Guangdong, Hong Kong and Macau," Fan said. "It will be an experiment with new policies. We need the support of Hong Kong and Macau to succeed."

Fan was referring to hurdles to the plan thrown up by the tricky legal relationship between Beijing and the two former colonies, obstacles that will require imagination and a willingness to experiment to surmount.

Hong Kong was handed back to China in 1997 after more than 150 years of British rule, and Macau, formally colonized by Portugal in 1887 after serving as a Portuguese trading post for the previous 330 years, returned to the motherland two years later. Under the "one country two systems" formula designed by Deng Xiaoping, both have their own constitutions guaranteeing legal autonomy and maintain strict border controls with the mainland.

Shortly after Hong Kong's handover, then Chinese president Jiang Zemin used a metaphor to explain the "one country two systems", saying "the well water does not intrude into river water, and vice versa" (each side minds its own business). However, one decade or so after the handover, Hong Kong and Macau have become increasingly integrated economically with the mainland, particularly the Pearl River Delta.

But it seems when economic integration develops to a certain extent, some kind of physical (geographical) integration becomes inevitable, at least for the sake of the sustained development of Hong Kong and Macau. In this regard, the Hengqin project may be seen as a test case that Beijing is opening the gate to allow "well water" to intrude into "river water". Nowadays, both in Hong Kong and on the mainland, there is no lack of talk about a merger of Hong Kong with Shenzhen, its mainland neighbor, to form a mega-metropolis. Thus the much-vaunted autonomy of Hong Kong and Macau may be ripe for some creative reinterpretation.

Such a mindset is already on display in the new infrastructure planned for the island, which until now has been occupied by the military and a smattering of farmers and fisherman. For example, the Macau government has agreed to build a tunnel from its Coloane Island to Hengqin through which students, faculty and other employees of the new campus will commute without being required to pass through immigration. The tunnel will also carry a communications cable giving the new campus the same high-speed Internet connection enjoyed in Macau.

Taking the "one country, two systems" mantra that has governed the handover of China's former colonies a step further, Macau law will apply on the new campus while mainland law will prevail in the rest of Hengqin.

Officials are also reportedly considering granting visa-free access to Hengqin to residents of Macau and Hong Kong and to foreigners. Such an innovation, if it were actually implemented, would represent leaps-and-bounds progress in the thinking of mainland officialdom. This kind of openness to foreigners has long been a staple of life in Hong Kong and Macau but, despite the last 30 years of economic liberalization in China, a lingering fear of foreign influence remains among Communist Party officials who ultimately make the decisions there.

Hengqin will serve as a test for them, and the possible economic rewards may in the end trump their paranoia.

Meanwhile, Hengqin will become the third so-called "New Area" in China, after Pudong in Shanghai and Binhai in Tianjin. These special development zones are all designated for economic experimentation and reform. But the Hengqin plan's emphasis on a clean environment and eco-tourism, as well as its easy transportation links with Macau and Hong Kong, mark it as something distinctly new. If successful, it will signal yet another important economic advance for China.

At the same time, the Henqin project could bring Hong Kong and Macau still closer to the bosom of the motherland and further enhance their integration into the Pearl River Delta economy.

It is no secret that officials in Hong Kong and Macau are worried about being marginalized as oddball former colonies as the mainland continues its spectacular growth.

Macau has done its best to attract mainland gamblers, and the leisure-and-resort plan for Hengqin should serve to lure many more visitors, both Chinese and foreign, to its casinos. Hong Kong, a shopping and entertainment mecca which opened its own Disneyland in 2005, also stands to benefit from a new influx of tourists.

Moreover, Hong Kong and Macau are reaching out to the riches of the mainland with plans to build a bridge - at 29 kilometers (18 miles) one of the world's longest - linking Hong Kong, Macau and Zuhai. And Hong Kong is committed to building a high-speed railway to connect the city to the mainland's rail network in Guangdong. At a cost of HK$65.2 billion (US$8.4 billion), it would be, per kilometer, the most expensive stretch of railway built anywhere in the world.

Local critics have decried the exorbitant cost of the project, but city officials insist it is necessary for Hong Kong's future prosperity.

In another jaw-dropping proposal, the Bauhinia Foundation, a policy think-tank closely associated with the Hong Kong government, has even proposed the merger of Hong Kong and the mainland border city of Shenzhen, a special economic zone, to form a mega-city of 20 million people. This idea however is not original. Several years ago, when development in Shenzhen came to its bottleneck, a number of Shenzhen scholars and legislators already began to push for it.

There is no shortage of imagination here on how to make full use of "one country two systems".

Kent Ewing is a Hong Kong-based teacher and writer. He can be reached at kewing@hkis.edu.hk.

(Copyright 2009 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)


Hong Kong law under Beijing’s shadow (Oct 23, '09)

HK-Macau bridge planners go for costly option (Mar 5, '08)

China-Macau industrial park launched (Dec 11, '03)

 

 
 



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