As the familiar saying goes, “In heaven there is paradise; on earth there are Suzhou and Hangzhou.” Yet beyond West Lake and its celebrated scenery, Hangzhou has another source of pride: its private economy.
For many years, private enterprise has helped stabilise growth, stimulate innovation, expand employment and improve people’s lives. We often use the shorthand “56789” to describe its role in sustaining healthy economic development: more than 50 per cent of tax revenue, 60 per cent of gross domestic product, 70 per cent of exports, 80 per cent of urban employment and 90 per cent of all enterprises. These figures also show why strengthening the private economy matters to China’s path of modernisation.
Since the 18th National Congress, Zhejiang has pursued innovation-led, high-quality development of its private economy. In the first half of 2023, the province recorded GDP of RMB 3.8717 trillion, up 6.8 per cent year on year, while 256,000 private enterprises were newly established, up 12.2 per cent. In the All-China Federation of Industry and Commerce’s 2023 list of China’s top 500 private enterprises, 108 Zhejiang companies appeared—the largest provincial total for the twenty-fifth consecutive year.
Hangzhou is a vanguard and main force within Zhejiang’s private economy. Amid profound global change and the effects of the pandemic, its entrepreneurs met difficult conditions and helped the private economy reach new ground. Forty-two Hangzhou companies appeared in the 2023 national top 500, representing 8.4 per cent of the country and 38.89 per cent of Zhejiang. Hangzhou again ranked first among Chinese cities, a position it had held for twenty-one consecutive years. The private economy is therefore a defining strength of Hangzhou’s development.
Hangzhou and Hong Kong share deep roots and complementary strengths. I believe Hangzhou’s opportunities are also Hong Kong’s opportunities; the stronger Hangzhou becomes, the more opportunities Hong Kong will find. Since its formation in 2018, the Association has brought together the two cities’ desire for investment, development and mutual benefit, while providing an important platform for Hong Kong businesses in Hangzhou and Hangzhou businesses in Hong Kong.
Over five years, with the guidance of the Liaison Office of the Central People’s Government in the HKSAR, the Hangzhou Municipal Party Committee and Government and its United Front Work Department—and with strong support from Zhejiang University, the Hangzhou Residents Association (Hong Kong) and the wider community—we have upheld our founding purpose, the principle of “one country, two systems” and the Basic Law, supported the HKSAR Government and Chief Executive in governing according to law, and taken a constructive role in Hong Kong’s social, economic and civic affairs.
When hearts and purpose align, no undertaking is beyond reach. Looking ahead to the new governing council, we will continue to unite entrepreneurs and business professionals from both cities and contribute to national development. We will renew our work, coordinate our institutional and civic responsibilities, and strengthen the Association’s social contribution. We will deepen economic cooperation between Hangzhou and Hong Kong: increasing the speed of development, the depth of industry, the energy of innovation and the warmth of human connection—writing a new chapter in cooperation between the two cities.
We will also continue to uphold the Basic Law and “one country, two systems,” support the Chief Executive and HKSAR Government in governing according to law, align our work with the national 14th Five-Year Plan and the Belt and Road Initiative, and contribute to Hong Kong’s lasting prosperity and stability and to the broader goal of national rejuvenation.
Qiu Jianlin, Chairman