Hong Kong faces critical bottlenecks in technology zone amid cross-border delays

Hong Kong Chief Executive John Lee faces pressure to dismantle four critical bottlenecks, personnel, capital, data and materials, that experts warn could determine whether the Northern Metropolis technology cooperation zone succeeds or stalls.

Two-hour commutes and two-month transfers

The scale of the obstacles is visible in the daily operations of surgical robotics firm Yuanhua Tech, whose employees spend two hours travelling between the company's Shenzhen base in Nanshan district and its Hong Kong office in the Science Park.

Financial transfers pose an even steeper hurdle. When the hi-tech company sends funds to Hong Kong for operations, the process can stretch to two months. "The procedures required for transferring funding from our Shenzhen headquarters to Hong Kong headquarters are very complicated … sometimes when we are urgently in need of money, there could be delays," Max Meng Qinghu, the company's chief scientist, said.

Relocation offers test case for border reforms

Yuanhua Tech's Hong Kong office is set to relocate into the Hong Kong-Shenzhen Innovation and Technology Park at the border with mainland China by the end of this year. The park forms part of the wider Hetao cooperation zone at the Lok Ma Chau Loop. The move could address the firm's current challenges, provided cross-border flows are streamlined.

Experts have identified the timely movement of the four elements as critical to the park's success. Major reforms in these areas could resolve current bottlenecks in research, recruitment and operations, unlocking the full potential of hi-tech companies and strengthening the zone's overall appeal.

Source: South China Morning Post