The Chamber Taipei Mission
- The first Hong Kong business delegation visiting Taiwan after the election

A Chamber delegation led by Dr Lily Chiang, vice chairman of the Chamber, has just returned from a two-day visit to Taipei. It is the first business delegation from Hong Kong visiting Taiwan after the election. Also on the delegation are Denis Lee, chairman of the Hong Kong SAR Government SME Committee and Dr Eden Woon, Chamber director.

The delegation met with Ma Ying-jeou, Mayor of Taipei; Wayne Wu, Deputy Director General of the Board of Foreign Trade; and John Ni, Director of SME Enterprises Administration during the visit. A number of issues were discussed including external trade of Taiwan and its SME development, the prospect of relaxing control on imports from the Mainland after Taiwan's accession to the WTO, and the possibility of achieving 'Three Links' across the Strait. In various occasion, delegates also got in touch with Lin Yi-fu, Vice Minister of Ministry of Economic Affairs, Cheng An-kuo, Vice Chairman of the Mainland Affairs Council and Yen Wan-ching, Director of the Department of Chinese Affairs, Democratic Progressive Party (DPP). Director Yen told the delegation that one of the tasks of the new government is to promote normalisation of the Strait relation with prime emphasis on stability. According to Yen, priority will be given to the enhancement of trade and economic relations across the Strait.

Delegates also attended the 10^th Taiwan-Hong Kong Joint Conference on Economic and Trade Affairs co-organised by HKGCC and Taiwan Federation of Industries. The conference looked at possible cooperation between Hong Kong and Taiwan in developing small and medium sized businesses, advanced technology, as well as exploring business opportunities in the Mainland. The experience of Taiwan in developing its well-established manufacturing and technology sectors provides good reference for Hong Kong's SMEs in these industries. On the other hand, Hong Kong's service sector can help Taiwan manufacturers open up the Mainland market.

The imminent entry of the Mainland and Taiwan into the WTO will create a new business environment that brings about economic re-structuring in Hong Kong and across the Strait. This will present the three places with more opportunities for cooperation in business and trade. Moreover, Hong Kong will have to adjust its traditional middleman role as a way to enhance the competitiveness of the three areas in international markets. For instance, in the advanced technology sector, Taiwan can focus on the development and manufacturing of hardware while Hong Kong concentrates on the design of software content with the assistance of Mainland professionals in its development.

With regard to 'Three Links', Taiwan representatives indicated that it will be a good time to discuss the subject when both the Mainland and Taiwan enter WTO. However, as this involves sea and air transport arrangements which are complicated issues, as well as the institution of related legislation and policies, 'Three Links' may not be achieved in the near future. Nevertheless, even if this is achieved, Hong Kong's position as a regional shipping hub may not diminished as some Taiwan cargo will still have to rely on Hong Kong's transportation facilities.

Speaking after the visit, Dr Lily Chiang said, "The Chamber delegation is the first business delegation from Hong Kong to visit Taiwan after the election. We are glad to see that different sectors in Taiwan are confident in future cooperation between the Mainland, Hong Kong and Taiwan on business and trade. The DPP representative also indicated that the Party understands the importance of actively promoting normalisation of bilateral trade and economic relations across the Strait. All these are confidence boosters to the Hong Kong business community in its role as an active and important middleman linking cross-Strait trade."

Dr Eden Woon added, "In 1992, the Chamber and Taiwan Federation of Industries jointly established the Hong Kong - Taipei Business Cooperation Committee and the Chinese Taipei - Hong Kong Business Cooperation Committee. During the past eight years, the two committees met regularly in joint conferences with a view to enhancing trilateral trades between the Mainland, Hong Kong and Taiwan, and explore opportunities in the Mainland market. Over the years we have discussed various issues and presented views to the authorities of Hong Kong and Taiwan on policies affecting bilateral trade. We will continue to work closely with the Taiwan Federation of Industries and are looking forward to the next joint conference held in Hong Kong at the end of this year."

Media enquiries: Dr Eden Woon, Director of HKGCC (Tel 2823 1211)