D. Strengthening the Economy

147.     After the financial tsunami in 2008, Europe and the US have lived under the menace of recession for the past two years.  The pace of economic recovery in the US has slowed, and the sovereign debt crisis in Europe has deepened.  The driving force for development has shifted to Asia and the BRICS (Brazil, Russia, India, China and South Africa).  The global economic landscape is changing after the financial tsunami.  During my overseas visits in recent years, I have observed that China's development has become the focus of world attention.  To maintain Hong Kong's competitiveness, we must seize new development opportunities both in the Mainland and globally.

Complementing the 12th Five-Year Plan

148.     In the National 12th Five-Year Plan, our country has expressed her support for Hong Kong to reinforce and enhance our status as an international centre for financial services, trade and shipping, and to develop industries where we enjoy competitive advantages.  Apart from continuing to implement CEPA, our country supports the development of a financial co-operation zone led by Hong Kong's financial system, and an advanced global manufacturing and modern services base, under the Framework Agreement on Hong Kong/Guangdong Co-operation.  It also supports the opening up of service industries in the Mainland to Hong Kong's service providers, starting with pilot programmes in Guangdong.  We will take forward these policy measures actively, with emphasis on strengthening our co-operation with Guangdong.

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