However, Aron Harilela says he is confident Hong Kong will bounce back quickly after the protests because the city has very good fundamentals.

Discussing the negative effects that the violent protests have produced, Harilela, chairman of the Hong Kong General Chamber of Commerce, said the disruptions at the airport last week were terrible. In the second quarter, GDP growth was only 0.5 percent. “The situation could get worse as we don’t know how long the protests will last,” he told China Daily in an exclusive interview on Tuesday.

“The SMEs have the biggest fears because they rely heavily on cash flows,” he said. “If their cash flows dry up, their businesses could close and their livelihoods are at stake. If businesses are closed, that would result in unemployment. This is the worst situation Hong Kong could face as we are lucky that we have had virtually zero unemployment for a long time.”

On Monday, the Census and Statistics Department announced that the seasonal jobless rate from May to July was 2.9 percent, slightly up from 2.8 percent in the April-to-June period. The upward trend was attributed to diminishing trade and continuous sluggish domestic consumption.

“I am in the hotel industry. It is rather bad that hotel occupancy is less than half (lately), while room rates are 30 percent down. With over 20 countries and regions having issued travel advisories to warn their nationals about visiting Hong Kong, foreign people don’t want to travel to Hong Kong. They canceled their flights and canceled their holidays. Many industries like tourism, retail and catering are hurt badly,” he said ruefully.

Many foreign businessmen have also canceled their trips to Hong Kong. “On Wednesday (today), I will have a meeting with local investors who are thinking about moving their money out of Hong Kong,” he added.

Noting that US President Donald Trump has recently said a lot about Hong Kong, Harilela said: “We know that President Trump wants to destabilize the business sector in China, and some of the events in Hong Kong worked in favor of destabilization. Yet we cannot be blinded by the fact that frustrations on the streets are real and they must be addressed.”

Harilela is optimistic that Hong Kong’s economic future will turn around.

“I believe the business environment will improve six to 18 months after the protests are over. Hong Kong will bounce back quickly because it has very strong fundamentals; namely, the rule of law, an independent judiciary, and free flow of information, people and capital. By that time, we will see some resumption. That will not happen this year but it will certainly be next year,” he said.

Harilela also notes that the protests have continued after Chief Executive Carrie Lam Cheng Yuet-ngor declared the “death” of the bill on July 9. Right now, the most important thing is to maintain law and order, and then to start a dialogue. As a chamber, the HKGCC will be happy to be a platform in any way to be able to help with any future communication, he said.

Referring to the growing use of violence, Harilela stressed disruptions at the airport on Aug 12 and 13 must be condemned because tourists feared for their lives, police officers were assaulted, and the lives of innocent bystanders were put in danger.

Radical protesters paralyzed Hong Kong International Airport for two straight days, resulting in 979 flight cancellations, according to the Airport Authority. A violent clash took place on the evening of Aug 13, when radicals assaulted and roughed up a mainland tourist and a Global Times reporter.

“This must be condemned,” he stressed. “But this is a turnaround because a lot from the majority do not want to associate with the violent minority. Therefore, we must make a division between the violent minority and the peaceful majority.”

It is not only about the bill, as there are a lot of other issues such as housing, quality of life and the wealth gap. “They all played a part in the frustrations of people in the streets and suddenly flared up,” he said.

He also expressed sympathy for the police. “We have a very small police force, with a little over 30,000 personnels. They have been on the street for 11 weeks but they are not riot police, and I am sure they must be very tired,” he said. It is entirely unacceptable in a decent society with the rule of law for police officers and their families to be subject to cyberbullying, he added.

The use of organic fertilisers is on the rise as farmers see improvements in the soil, crops and environment when they dispense with chemicals, they said.

Phan Van Tam, marketing director of Bình Dien Fertiliser Joint Stock Company, told Nguoi Lao Dong (The Labourer) newspaper that his company has been supplying organic fertilisers to the market for three or four years, adding that it now produces nearly 20,000 tonnes a year and would increase production.

They are produced only at only two subsidiaries of the company, Binh Dien – Mekong and Binh Dien – Lam Dong, so the output is still modest, he said.

Another subsidiary, Binh Dien Quang Trị JSC, has been granted a licence and would start production soon, he said.

In the near future, the parent company and Binh Dien Ninh Binh Company would also start production, and the output would increase significantly, he said.

The Ministry of Agriculture and Rural Development’s Plant Protection Department has collaborated with major companies such as Loc Troi Group JSC, Con Co Vang Hi-Tech, Que Lam, Phuc Thịnh, GNC, Hiep Thanh, and Green Powers to develop organic fertilisers.

Loc Troi, which entered the organic fertiliser market in 2009 with only one product, has now expended to eight, and is supplies two million litres and 10,000 tonnes of organic fertilisers to the market annually.

Loc Troi and the department recently signed a deal to enhance production and usage of the fertilisers.

Many companies have shifted to organic products to meet the demand for safe agricultural produce.

According to the Ministry of Agriculture and Rural Development, as of December 2017 the country had only 713 organic fertiliser products, accounting for 5 per cent of total fertiliser output. In April 2019 they had increased to 2,312 and 11.1 per cent.

But the output remained very modest at just 1 million tonnes last year, out of 11 million tonnes of fertilisers overall.

The country is striving to increase that to three million tonnes by next year with licences issued to produce 3.36 million tonnes a year.

Meanwhile, imports have been skyrocketing in recent years from Japan, the EU, China, Myanmar, Cambodia, and Laos.

An official of the ministry said Vietnam has great potential in organic fertiliser production with 60-70 million tonnes of agricultural by-products and 20 million of seafood by-products made in the country annually.

The by-products can be used as raw materials for making organic fertilisers, but they have not been properly exploited for a long time, he said.

This would also help reduce pollution and improve soil fertility and farm produce quality, he added.

The country’s financial and business centre reported an actual use of foreign investment worth US$11.45 billion (Bt352.8 billion) from January to July, marking a 13.8 per cent rise year-on-year, the Shanghai Municipal Commission of Commerce said.

During the first half, up to 4,105 foreign-funded projects were established, up 58.3 per cent compared to the same period last year.

The new policies pledge more free capital flows and intellectual property rights protection for the regional headquarters of multinational corporations, said Yang Chao, deputy director of the municipal commission of commerce.

“Facing external uncertainties, China has been opening to the outside world to increase its resilience to risks and to shoulder its responsibility as a major country,” said Wang Xiaosong, a research fellow with the National Academy of Development and Strategy under Renmin University of China.

Covestro, a global chemicals giant that has been in China for nearly 20 years, is planning to upgrade its China headquarters in Shanghai into its Asia-Pacific headquarters.

Holly Lei, president of Covestro China, said after this, the company will be able to better coordinate its global resources to grow together with China.

China is Covestro’s biggest single market and Shanghai is home to its largest plant while housing its Asia-Pacific innovation centre, said Lei.

Covestro is not alone in terms of expanding its business ambitions in the world’s second-largest economy.

French carmaker PSA Peugeot Citroen also plans to set up a regional procurement centre in Shanghai, while German chemicals giant BASF has upped its investment to upgrade its innovation centre in the city after investing in a $10-billion production facility in Zhanjiang. Shanghai is also home to Tesla’s gigafactory, which is under construction with an investment of over $7.1 billion.

Investments from the European Union, Singapore, Japan and countries included in the Belt and Road Initiative all grew at double-digit rates in the first half and the investment structure is being optimised, said Hua Yuan, director of the municipal commission of commerce.

The high-tech service industry reported an actual use of foreign investment worth $1.7 billion in the first six months, posting a hefty annual growth of 29.6 per cent, said Hua.

A series of opening-up measures in multiple fields and industries and the improving business environment has ramped up foreign investment interests in China.

In June, China rolled out revised negative lists for foreign investment market access, allowing foreign investors to run majority-share or wholly-owned businesses in several sectors.

China expanded the Shanghai free trade zone this month by building the new Lingang area into a special economic zone that is competitive and globally influential.

Shanghai has also rolled out a series of policies to further open the service industry to foreign investors and promote the development of regional headquarters of multinational corporations.

“The status as a special economic function zone means it is not adding more facilities, but moving toward real investment and trade liberalisation,” said Shen Yuliang, a researcher with the Institute of World Economics under the Shanghai Academy of Social Sciences.

Groups that threaten national security no longer depend on military weapons. Instead, they prefer cheap but destructive cyberattacks to target governments and key infrastructure, putting a lot of people in jeopardy, they said.

“With the blossoming development of cloud computing, big data, artificial intelligence and other new technologies, cyberattacks and cybercrimes continue to rise amid the fierce competition in cyberspace,” said Li Aidong, deputy director-general at the cybersecurity coordination bureau of the Cyberspace Administration of China.

“It is urgent for all parties to work together to maintain cybersecurity,” he said.

More efforts would be needed to beef up construction of an information infrastructure protection system, focusing on preventing organised cyberattacks between countries, and gradually establish systems like a chief security officer and network review, the official added.

There is also a need to boost the development of the cybersecurity sector, encourage companies to develop cutting-edge cybersecurity technologies, lift regulatory and tax burdens that are hurting innovation and companies, cultivate more security talents, and deepen international cooperation in terms of security technologies, talents and standards, Li noted.

China currently has the biggest share of the global internet market in terms of the number of users. A report by the China Internet Network Information Center said the country has 829 million internet users, accounting for 59.6 per cent of its population.

It is necessary for China to beef up input on cybersecurity, said Yang Yuyan, deputy director-general at the cybersecurity administration bureau of the Ministry of Industry and Information Technology.

“In today’s changing environment, the online threats are real and multifaceted. Cyberattacks and risks have become increasingly rampant, and they actually break the boundaries between the physical world and the virtual network,” Yang said.

He explained: “With online threats on the horizon, the key defense lies in a coordinated response from the government, companies, institutes and the rest of society, which will help foster breakthroughs in key technologies and build a good ecosystem in the sector.”

Wu Hequan, an academician of the Chinese Academy of Engineering, said new security problems will appear in the era of 5G communications technology and the internet of everything.

“For example, almost 10 times faster than 4G, 5G supports more types of services and a wider range of applications. However, 5G may be a double-edged sword for security. On the one hand, intelligent monitoring will be achieved in the 5G era which will help improve the network security defense level. On the other hand, 5G may also bring new online risks, making it possible to more cyberattacks,” Wu said.

A report from the Internet Society’s Online Trust Alliance said the worldwide economic impact of cybercrime was at least $45 billion, highlighting the increasingly important role of cybersecurity.

“Cybersecurity is no longer only related to the internet but now involves national security, social security, infrastructure security and even personal safety,” said Zhou Hongyi, chairman and CEO of the 360 Security Technology Inc.

“In the future, there will be hundreds of billions of smart devices in various fields, and we will face unprecedented security challenges,” he said.

Zhou fears that cyberattacks and cybercrimes will increase in the future. To combat the threat, a growing army of professionals will have to be recruited.

The city has implemented a project to help distribute information on cashless transactions to local businesses and people. Da Nang’s State Bank office and other credit institutes have taken measures to help customers understand that their rights will be protected and their privacy and convenience are top priorities.

Credit institutes have been reviewing the city’s POS (point-of-sale) and mPOS network to recall rarely-used POS machines, installing modern ATM machines with a wide range of functions to provide customers with more services as well as online support.

Deputy chairman of the city’s People Committee Tran Van Mien said the project aims to change residents’ mindset and perception of cashless transactions, widen the city’s electronic-payment network coverage and cater to the needs of local residents and international visitors.

Despite the rising popularity of cashless payments, especially among youngsters and high-income earners, the city still faces difficulties in getting through to small-time vendors, local markets and restaurants, who prefer cash-based transactions. In addition, there is a lack of financial services designed to support such small businesses.

The city has set a target to bring the amount of cash-based transactions to less than 10 per cent and to reach 30 million credit and debit card transactions in 2020. It also plans to upgrade its electronic payment network and develop numerous forms of cashless products.

Financial experts said cashless payments could help propel economic development. US-based Boston Consulting Group said a simplified process of sending and receiving payments can spur growth and boost financial inclusion, with economies that are quick to adapt and which witch to digital doing better.

While the outlook of cashless payment development in Vietnam remains positive with the implementation of modern infrastructure and technology as well as the support of the Government, the country is still lagging behind. The chief executive of a major e-commerce website in Vietnam said the Vietnamese customer-preferred mode of payment was still cash with 65 per cent of buyers preferring Cash on Delivery payment, eight times the world’s average.

Speaking to reporters ahead of Tuesday’s customary Executive Council meeting, Lam said she hoped a non-violent weekend assembly that saw tens of thousands take part, indicated peace was returning to the Special Administrative Region (SAR).

Sunday’s protest was the calmest since latest demonstrations against a now-shelved extradition bill escalated in mid-June.

“All my principal officials and I are committed to listening to what the people have to tell us,” she said.

Ignoring facts, DPP authorities are covering up the crimes of some violent activists in Hong Kong and emboldening them to harm Hong Kong, he said.

“They are also openly claiming to provide shelter to the criminals and make Taiwan a ‘safe haven’ for them. How about the safety and well-being of Taiwan residents?” he said, adding that no one has the right to be above the law.

Ma warned the DPP authorities to stop undermining the rule of law in Hong Kong, interfering in Hong Kong affairs and conniving with criminals in any way.

It will help better develop the Guangdong-Hong Kong-Macao Greater Bay Area and enrich the practice of the “one country, two systems” principle, according to the guideline, adding that it will be a good way to explore a new path in building a great modern socialist country in an all-around way and providing strong support for realizing the Chinese dream of great national rejuvenation.

By 2035, Shenzhen will become a national model of high-quality development and a globally recognized center of innovation and entrepreneurship

According to the guideline, Shenzhen by 2025 will rank among the top cities in the world in economic strength and quality of development, with intensive research and development investment and world-class industrial innovation capacity.

It will be built into a modern, international and innovative city by then, with its cultural power greatly enhanced and its public service level and ecological environment quality reaching an international advanced level, according to the guideline.

By 2035, Shenzhen will become a national model of high-quality development and a globally recognized center of innovation and entrepreneurship. It will become an example for China to build itself into a powerful modern socialist country, according to the guideline.

By mid-century, Shenzhen will become a global benchmark city in its competitiveness, innovation and outstanding influence, it added.

According to the document, the central government will support Shenzhen in implementing a more open and convenient system for the introduction of foreign talent and allow international contributors with permanent residence to set up scientific and technological enterprises in Shenzhen and serve as legal representatives.

Shenzhen will also continue to open up to Hong Kong and Macao. The country will explore the model of collaborative development by the cities and facilitate the efficient flow of personnel, capital, technology and information, it said.

The central government will encourage Shenzhen, Hong Kong and Macao to jointly hold cultural and artistic activities to better preserve their cultural heritage and strengthen the sense of identity of compatriots.

The guideline was reviewed and passed in the ninth meeting of the Central Committee for Deepening Overall Reform on July 24.

Since the start of reform and opening-up, Shenzhen has grown from a small fishing village to a modern metropolis, with its gross domestic product surging from less than 200 million yuan (US$28.4million) in 1980 to 2.4 trillion yuan in 2018, surpassing its neighbor Hong Kong, according to official data.

With a population of 12 million people, the southern city is known for its strong innovation capabilities. It is home to more than 14,000 national high-tech enterprises and technology giants, including Huawei and Tencent.

Wang Xiaoguang, a professor of economics at the National Academy of Governance, said in an article published on Aug 3 in the Outlook Weekly, a magazine affiliated with Xinhua News Agency, that many precedents of China’s reform and opening-up originated in Shenzhen.

It has accumulated valuable experience for China’s reform and opening-up and modern construction, and has made significant contributions to exploring the path of socialism with Chinese characteristics, Wang said.

The essential feature of socialism with Chinese characteristics is the leadership of the Party, which plays a central role in coordinating the overall situation, he said, citing Shenzhen as a good example of handling the relationship between market and government since China’s reform and opening-up began.

According to the website, Tesla took the first spot with sales volume of 160,000, accounting for 14 per cent of the total global volume. Chinese carmakers BYD, BJEV and SAIC ranked the second, third and fourth, respectively, with total sale volume of 270,000, accounting for one-quarter of global volume in the first half of 2019. The Geely Automobile Group took the seventh rank with sales volume of 47,000 and the JAC Motors ranked 10 with sales volume of 32,000.

With respect to specific models, Tesla’s Model 3 sold 127,000 in the first half of the year, comfortably taking first place, followed by BJEV’s EU series with sales volume of 50,000 and BYD’s Yuan, 43,400.

According to the statistics, sales of new energy vehicles grabbed 2.4 per cent of the total auto sales around the world, rising by 0.8 per cent year-on-year. Analysts say the sales of new energy cars still have room to grow against the background of a declining automobile market.

The joint study by the Institute for Development of Economics and Finance (Indef) and non-profit research foundation Laboratorium Data Persada has found that the digital economy generated added value to several sectors, including manufacturing, trade and transportation, and communication.

“The manufacturing sector has benefited the most,” Indef research director Berly Martawardaya said on Wednesday, adding that the digital economy would create Rp 100 trillion value added in the manufacturing industry.

Berly said the government should ensure nationwide internet access in its efforts to spur growth in the digital economy, as well as work with businesspeople to develop digital skills development, logistics and financial access, among other things.

Mira Tayyiba, the economic relations expert staff to the Coordinating Economic Minister, who attended the discussion, said that the government had taken several measures to boost the digital economy, citing education programs and the Palapa Ring nationwide broadband network.

“The government is working together with businesses, such as marketplace, in upgrading local products through education programs,” said Mira. “Insya Allah [God willing], the Palapa Ring project will be completed this year,” she added. (awa)