HK hopes to rent land in Guangzhou Proposal for govt to build homes and rule area may spark controversy Source: Straits Times | Asia By Li Xueying Hong Kong Correspondent THE search for more land has taken Hong Kong across the border - into mainland China. A government-affiliated think-tank is drafting a proposal to create a mini-Hong Kong in Nansha, Guangzhou, by leasing land from the local government. The proposed 40 sq km land parcel will be governed by Hong Kong and its laws. This includes unfettered Internet, and the freedom of expression and the media - rights enshrined in Hong Kong, but not in the rest of China. Says Mr Fang Zhou, chief research officer of the One Country Two Systems Institute, which advises Chief Executive Leung Chun Ying: It will, for all intents and purposes, be part of Hong Kong. The proposal will be formally submitted to the Hong Kong government for approval early next year, adds Mr Fang, who is also a member of a new government-appointed committee to strategise how Hong Kong and mainland China can strengthen cooperation. It is understood that the idea has Mr Leungs tacit support. After that, the approval of Beijing and the Guangdong government will have to be sought. But the idea, which raises questions of political jurisdiction and financial control, is sensitive and likely to attract controversy. Its proponents believe that such an arrangement will benefit both Hong Kong and Guangdong. Located in south-eastern Guangzhou, Nansha, which has an area of 800 sq km, has been designated a development zone along with Qianhai in Shenzhen and Hengqin in Zhuhai, but lags behind the other two in attracting investors. Once dubbed the Siberia of Guangzhou, it remains dotted with fields amid developments. Hong Kong, on the lookout for space to build more homes, can build some 300,000 flats on the designated site, housing 600,000 to 800,000 people, says Mr Fang. It will be accessible: A high-speed rail connecting Nansha to Hong Kong is expected to be up by 2015. The trip to West Kowloon will then take just 30 to 40 minutes, compared with todays 80 minutes by ferry. There will be immigration and Customs control points. Next to this site is another of a similar size. This will still be under the control of Guangzhou, but Hong Kong will encourage companies to set up operations there - hopefully under preferential policies solicited from the central government. This will create jobs for the Hong Kongers next door while attracting investors to Nansha. Such examples of closer regional integration could give the Pearl River Delta region an edge in applying for free trade zone (FTZ) status, argues Mr Fang. The province is lobbying Beijing, as are rival regions such as Chongqing and Tianjin, after the opening of the Shanghai FTZ last month. Renting land from the mainland may seem unorthodox, but there is a precedent. In July, Macau took control of 1sq km of land in Hengqin, paying 1.2 billion Macanese pataca (S$188 million) to the Zhuhai authorities for a 40-year lease. It is being used by the University of Macau for its new campus, 20 times the size of its old one. This followed several rounds of discussions between Beijing and the Macau government, and mainland media have since held it up as a successful and flexible application of the One Country, Two Systems principle. But the Hong Kong project is likely to be more contentious. It is much larger. And unlike the Macau plot, which is used only by an academic institution, the Hong Kong parcel will involve issues of financial control, taxation and land ownership, notes Professor Mao Yanhua of the Centre for the Studies of Hong Kong, Macao and Pearl River Delta at the Sun Yat-sen University in Guangzhou. There is also the matter of prestige, given that a provincial capital is yielding control of its land. Mr Johnson Huang, director of foreign capital and overseas investment at the Guangdong Development and Reform Commission, reacted cautiously to the idea, telling The Straits Times: We need to wait for the details and see whether and how it can benefit both sides. And while the proposal will benefit Hong Kongers in terms of housing provision, it is likely to meet some opposition, given rising tensions about integration with the mainland and worries that the physical border between the two is being diluted. [email protected] Additional reporting by Pearl Liu
Posted on: Wed, 13 Nov 2013 03:27:28 +0000
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