Member of the Standing Committee of the National People's Congress, KPMG China Advisor Li Huiqiong: Suggests opening low-altitude logistics routes from Mainland China to Hong Kong

National People’s Congress Standing Committee Member Li Huiqiong Submitted Multiple Recommendations Focusing on the “Greater Bay Area,” Including Building the World’s First Cross-Border Routine Low-Altitude Air Route, Establishing a Collaborative Model of “Mainland R&D and Manufacturing + Hong Kong Financial Services”; Setting Up an AI Data Cross-Border Pilot Zone in Hetao; Launching Offshore Renminbi Bond Futures in Hong Kong; Expanding and Optimizing the “Swap Connect”; Improving VAT System to Reduce Corporate Burden and Promote Service Trade Upgrading, etc.

Everyday Economic News Reporter | Zhang Zitong Everyday Editor | Wei Guanhong

On March 5th, “Daily Economic News” reporter learned from Li Huiqiong, member of the Standing Committee of the National People’s Congress, Chairwoman of the Legislative Council of the Hong Kong Special Administrative Region, and KPMG China Advisor, that this year she submitted multiple written suggestions based on the “Greater Bay Area,” covering offshore Renminbi financial markets, low-altitude economy, port clearance, patriotic education, AI data cross-border, talent in the Greater Bay Area, Hetao International Sci-Tech Innovation Center, VAT reform, and other fields.

Over the past year, the low-altitude economy industry has developed rapidly. Relying on the advantages of the Guangdong-Hong Kong-Macao Greater Bay Area’s low-altitude industry cluster and rich application scenarios, Li Huiqiong proposed building the world’s first routine cross-border low-altitude route. She suggested adopting a “goods first, passengers later” promotion model, using advanced electric aircraft to compress cross-border freight time to within 30 minutes, creating an industry benchmark.

“Constructing an industrial synergy pattern of ‘Mainland R&D and manufacturing + Hong Kong financial services,’ innovating cross-border regulatory sandbox mutual recognition mechanisms, and improving infrastructure such as takeoff and landing sites, logistics hubs, and three-dimensional information data platforms,” Li Huiqiong said.

Li Huiqiong, Member of the Standing Committee of the National People’s Congress, Chairwoman of the Legislative Council of the Hong Kong SAR, and KPMG China Advisor. Photo source: Provided by interviewee

Tips for the “Greater Bay Area Half-Hour Living Circle”: Paving the Way for Low-Altitude Economy, Breaking Through Hetao Sci-Tech Innovation

In terms of frontier industry layout, Li Huiqiong focused on the low-altitude economy, recommending leveraging the industry advantages of the Greater Bay Area to build the world’s first routine cross-border low-altitude route. “The advantages of the Greater Bay Area are industry clustering and proximity. ‘Goods first, passengers later, step-by-step promotion’ is the most pragmatic approach,” she said. She proposed first opening a low-altitude logistics route from the Mainland to Hong Kong, compressing cross-border freight to within 30 minutes, laying the foundation for the “Greater Bay Area Half-Hour Living Circle.”

She emphasized that one key to breakthrough is innovating regulatory systems. “We need to establish mutual recognition mechanisms for cross-border regulatory sandboxes, break through airspace and customs bottlenecks, promote digital customs clearance and intelligent monitoring, and truly implement the low-altitude economy.” In her view, this can drive the development of logistics, manufacturing, and other industries. Her suggestion also established a collaborative model of “Mainland R&D and manufacturing + Hong Kong financial services,” providing a “Chinese solution” for the globalization of the low-altitude economy.

Focusing on the free flow of innovation elements between Shenzhen and Hong Kong, Li Huiqiong put forward two heavyweight suggestions, both centered on the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone.

She believes that the flow of innovation elements requires platform building, allowing top talent to showcase their skills.

“Talent often follows good platforms. Therefore, the talent policies of the Guangdong-Hong Kong-Macao Greater Bay Area should focus on building platforms to attract talent. In the 14th Five-Year Plan, more major scientific facilities (such as spallation neutron sources) should be located in the Greater Bay Area to attract top global talent. Meanwhile, leveraging the international advantages of Hong Kong and Macao, creating attractive work and living environments in Hetao, Hengqin, and other areas to support talent mobility.”

Secondly, Li Huiqiong emphasized the importance of cultivating local talent. Discipline development is the foundation of talent cultivation.

She suggested piloting initiatives in the Greater Bay Area to promote integrated development in education, science and technology, and talent, and to preemptively plan emerging disciplines. Supporting universities in the Mainland and Hong Kong-Macao to collaborate closely—co-building colleges, mutual recognition of credits, and jointly cultivating students—would help establish a batch of world-class discipline clusters and lay a foundation for nurturing local talent.

She also recommended connecting “industry-university-research” to energize innovation talent. Promoting “dual-employment” between schools and enterprises, allowing professors to work part-time in companies and industry experts to return to universities to teach students. Forming innovation consortia and implementing a “dual-mentor system,” where enterprises set questions, universities answer, and markets grade, to foster talent through practical experience.

Regarding AI data cross-border flow, she proposed establishing a pilot zone in the Hetao Hong Kong Park, using a “data bubble” model to enable free cross-border flow of scientific research, financial, and medical data. “State-owned telecom companies should manage ports and handle data desensitization, ensuring security while enabling data to truly flow.”

To reduce compliance costs for institutions, she also suggested launching a “Data Cross-Border Flow Facilitation Service Package,” establishing a one-stop service window offering compliance consulting, filing acceptance, and template guidance. “Let researchers focus on R&D, not compliance processes—that’s what we need.”

In basic research, she recommended establishing an International Mathematical Union (IMU) Hong Kong branch in the Hetao Hong Kong Park and supporting Hong Kong’s bid to host the 2030 International Congress of Mathematicians (ICM). “Basic science is the source of new productive forces.” She said, “By attracting top global experts through special talent policies and facilitating cross-border scientific data and funding flows, Hetao can become a highland for basic research and enhance China’s voice in international basic science.”

Suggestions for Launching Offshore Renminbi Bond Futures in Hong Kong

In finance, Li Huiqiong focused on improving the offshore Renminbi market system, submitting a proposal titled “Suggestions on Central Support for Hong Kong to Develop Offshore Renminbi Bond Market to Promote Renminbi Internationalization.” She recommended the Ministry of Finance and relevant policy banks further increase issuance of offshore Renminbi bonds and policy financial bonds in Hong Kong, establishing a “routine and predictable” issuance mechanism. “A stable supply mechanism helps improve market liquidity, perfects the offshore Renminbi benchmark yield curve, and provides reliable pricing benchmarks.” She also proposed introducing relevant preferential policies to encourage high-quality enterprises to issue Renminbi bonds in Hong Kong and list on the Hong Kong Stock Exchange, enriching the maturity structure and product types of offshore Renminbi bonds to meet the diversified asset allocation needs of global investors.

Regarding cross-border financial infrastructure, she suggested four key optimizations. “First, expand and optimize the ‘Swap Connect,’ enrich product varieties, improve related clearing micro-mechanisms, reduce transaction costs, and enhance settlement efficiency.” She also recommended further leveraging Hong Kong and the Hong Kong Stock Exchange’s functions in the “Bond Connect Southbound” business, working with regulators to refine standards for qualified bonds and tracking, providing a risk-controlled, compliant, and efficient channel for Mainland funds to go global.

More critically, she advised regulators to accelerate the launch of offshore Renminbi bond futures and other key risk management tools in Hong Kong, and establish a cross-border repurchase centralized clearing mechanism. “This is a key step to fill the gaps in risk management,” she explained. “With futures tools and revitalized repo markets, Hong Kong can truly form a closed loop for offshore Renminbi asset pricing and risk management, consolidating its status as a global hub.”

On macro tax reform, she submitted “Suggestions on Improving VAT System Supporting Framework, Enhancing Tax Neutrality and Governance Efficiency,” proposing four major measures. “First, refine the judgment standards for mixed sales to ensure policy consistency.” She also emphasized clarifying the scope boundaries of cross-border and non-taxable transactions, using a “positive and negative list” approach.

She paid particular attention to corporate financing costs, recommending pilot programs for deducting interest expenses. “This can effectively reduce corporate burdens, especially for small and medium-sized enterprises.” Additionally, she suggested gradually expanding zero-tax support for high-tech, high value-added, and encouraged export services such as digital services, professional consulting, energy-saving, and environmental protection services, to promote service trade upgrading toward technology-intensive sectors and deepen integration of producer services with advanced manufacturing.

(Edited by: Wen Jing)