There has been a downturn in Hong Kong's economy since this year. Its weak economy actually reflects the decline of Hong Kong’s competitive strength. ANBOUND think tank scholars believe that Hong Kong needs to get rid of its psychological superiority caused by achievements in the past in order to regain its competitive strength. It should fully utilize the Chinese market which has growing influence and cultivate more talents by increasing investment in human capital and develop high value added knowledge economy. Currently, Taiwan and Singapore are also actively developing RMB’s offshore markets, bringing Hong Kong increasingly fiercer competition.