Hong Kong’s first five-year plan is intended to set strategic direction without turning the economy into a command economy, Secretary for Constitutional and Mainland Affairs Janice Tse Siu-wa said on 24 September. She said the free market would remain central, with the government guiding and assisting rather than directing every economic outcome.
Her comments followed commentary by The Wall Street Journal questioning whether the plan marked a move towards a planned economy. Tse said that interpretation misunderstood the plan, which she described as forward-looking development guidance. The government had published the plan alongside the 2026 Policy Address before her radio appearance.
The practical distinction, she said, lies in how the plan treats its economic indicators. Many figures are forecasts or expected ranges, rather than hard targets, because a government operating within a free-market system cannot control every market result. The absence of binding targets for many indicators was itself evidence, in her view, that Hong Kong was not adopting a planned economy.
Firmer commitments would apply where the government is putting in resources or meeting international obligations, Tse said. She cited land-creation targets and emissions-reduction commitments under the Paris Agreement as areas where clear indicators and measures would be required.
Tse also said Hong Kong retains room to choose how it aligns with national planning. She said the relevant planning-law provisions do not apply to Hong Kong and Macau, though they encourage the two special administrative regions to align proactively. Hong Kong could therefore select areas that matched its own strengths, she said.
Those strengths include the common-law system, Hong Kong’s position as an international financial centre and its professional services, according to Tse. She presented cooperation with places such as Qianhai and Nansha within the Greater Bay Area as complementary work rather than uniform competition, with the wider market described as having more than 80 million people.
She cited a special examination intended to help Hong Kong lawyers connect with the Greater Bay Area, and Hong Kong accountants helping mainland companies meet international standards. Tse said that could support companies seeking Hong Kong listings, setting up branches or expanding overseas.