Hong Kong Legislative Council: Dual-track driving of shipping and aviation industry development to consolidate Hong Kong's status as an international shipping center and aviation hub.

On May 12, the Hong Kong Legislative Council Secretariat released the latest issue of "Special Newsletter" - "Strengthening Hong Kong's International Shipping Center and Aviation Hub Status Connecting the World". The newsletter introduces various measures to strengthen and enhance the two major positions, and summarizes the discussions and suggestions of legislators in the Legislative Council. The newsletter points out that the Hong Kong SAR government is driving the development of the shipping and aviation industries with high-end service industries and efficient networks. In terms of shipping, the newsletter outlines three strategies adopted by the SAR government to create Hong Kong as the "global shipping hub", including improving the high value-added shipping service ecosystem, promoting green shipping, and accelerating digital construction. Currently, there are about 1,200 shipping-related companies in Hong Kong, providing high-end services such as port and vessel management, brokering, financing, maritime insurance, and legal services. The Hong Kong government plans to submit legislation to the Legislative Council in the first half of this year to optimize tax incentives for the shipping industry and provide partial tax exemptions for bulk commodity trading, further promoting the development of high value-added shipping; in addition, they also plan to allow vessels to have dual registration to accommodate the diverse operation models of international shipping companies. Legislators suggest that the authorities not only strive to negotiate reciprocal tax exemption arrangements on shipping income with more countries and regions but also make good use of Hong Kong's existing advantages in professional services such as legal arbitration and insurance to provide one-stop high-end professional services for green shipping in Hong Kong, including technical standard setting, certification, and carbon emission financing. In terms of developing smart ports, the Legislative Council Finance Committee approved a budget of HK$215 million last year to develop and implement the Port Community System, which provides industry-wide real-time cargo tracking and information services, with over 5,000 companies currently registered. On the other hand, legislators also focus on the financial sustainability of this system, believing that attractive charging arrangements should be studied; in addition, the system should ensure effective connection with smart port-related platforms around the world and in mainland China. In terms of aviation, Hong Kong International Airport is one of the most important aviation hubs in the world. The newsletter lists various development strategies formulated by the government, including actively expanding routes and expanding flight rights; continuing to improve the multimodal transport network in the Greater Bay Area and attracting transit passengers, further strengthening Hong Kong's role as a bridge in the Greater Bay Area and global aviation network. Legislators urge the SAR government to discuss with mainland authorities to integrate Hong Kong Airport into the national civil aviation system and development strategy, with Hong Kong focusing on developing categories such as global transit, high-end services, and institutional innovation. Legislators also believe that Hong Kong should attract passengers and business travelers "flying through Hong Kong" with cultural soft power, and suggest that authorities systematically plan global impactful iconic events and cultural projects. Furthermore, to seize the opportunities brought by the three-runway system at the airport, the Hong Kong Airport Authority is actively promoting two major projects, the "Airport City" and the "Hong Kong International Airport Dongguan Air Cargo Center". In terms of the "Airport City", legislators suggest not only strengthening high-end professional services such as aircraft leasing and legal arbitration, but also further expanding high value-added facilities such as art treasures and yacht harbors, and streamlining the immigration process for high-end consumer passenger groups; in addition, they also suggest that the authorities lead different industries to connect with the development opportunities of the Dongguan Air Cargo Center, radiate its operating mode to more cities in mainland China, and actively negotiate with mainland customs to set up a fast customs clearance channel.