Abstract: The cooperation between Shenzhen and Hong Kong has a long history. From the early “After former shop factory” pattern to the “Dual-city economy” today, it has made important breakthrough. The total economic volume of Shenzhen and Hong Kong in the first quarter of 2021 is US$196.2 billion, surpassing Switzerland, which ranks 18th in the global economic rankings. The "2020 Global Innovation Index Report" released by the World Intellectual Property Organization shows that the Shenzhen-Hong Kong-Guangzhou urban agglomeration ranks second in the global innovation cluster. However, from the comparison of Shenzhen and Hong Kong’s internal economic strength and vitality, the status of Shenzhen and Hong Kong has undergone significant changes. The GDP of Shenzhen exceeded that of Hong Kong in 2018, and the gap continued to increase. Besides, Shenzhen’s continuous policies in innovation-driven, talent introduction, and mass entrepreneurship have made it the most dynamic city in the country. While on the contrary, Hong Kong experienced a significant decline in economic growth in 2019, especially since the Covid-19 in 2020. Its total economic volume has been surpassed one after another, and all aspects of social life have been greatly affected. In this context, it is necessary to pay attention to the relationship between Shenzhen and Hong Kong, and adjust the cooperation pattern, so that both cities’ strength can be fully utilized and demands can be better satisfied.
 
Based on the analysis of the national strategic priorities under the changing international situation, the development status of Shenzhen and Hong Kong, their respective development needs, and the shortcomings of historical cooperation models, this report proposes that Shenzhen-Hong Kong cooperation should highlight Shenzhen’s back-feeding effect and emphasize Hong Kong’s role as a reference for Shenzhen. Under the guidance of new cooperation pattern, which aligns with the national strategy, Hong Kong is likely to enhance its economic vitality, and better integrate into the construction of Guangdong-Hong Kong-Macao Greater Bay Area, the Belt and Road, as well as the dual-cycle national strategy. At the same time, Shenzhen will get sufficient support in building international consumption center, global innovation center and financial center. The cooperation between Shenzhen and Hong Kong will burst with greater vitality.

Full report: https://thinktank.phbs.pku.edu.cn/2021/zhuantibaogao_0722/35.html