China's entry to the WTO and its impact on HK business

The Hong Kong General Chamber of Commerce
Welcomes Passage of PNTR to China

The Hong Kong General Chamber of Commerce welcomes the passage of Permanent Normal Trade Relations (PNTR) status to China in the United States House of Representatives yesterday. US Senate's passage is expected shortly. This, together with the signing of the Sino-EU WTO agreement on May 19, bring China to the concluding phase of her journey to become a member of the World Trade Organization (WTO).

Mr. C C Tung, Chairman of the Hong Kong General Chamber of Commerce, commented, "Although China will enter the WTO regardless of whether the US Congress passes the PNTR legislation, the victory in the House of Representatives yesterday and the virtually assured passage of the legislation in Senate promise a more stable Sino-US trade relationship, which I think will definitely enhance the volatile bilateral relations between the two nations. This positive development will be beneficial to Hong Kong."

Dr. Eden Woon, Director of the HKGCC, supplemented, "China's bilateral negotiation with the EU is one of the major hurdles in China's WTO entry. Clearing this hurdle gives China a smooth road to enter the WTO by the end of this year. China's entry into the WTO will open her markets to the world and create numerous opportunities for her trading partners. The Chamber is confident that Hong Kong will take advantage of and benefit from this momentous turning point for China."

In the Chamber's recent report on "China's Entry into the WTO and the Impact on Hong Kong Business", the optimistic view is shared by working group members from nine business sectors (see chart). Chamber members found that while challenges are going to be plentiful for Hong Kong businesses in the new environment, there are new and widespread opportunities for those who take steps to meet these challenges. In particular, the Chamber believes that in the coming years, Hong Kong's role will be as a logistics hub, a financial hub, and a digital hub between China and the world.

In conclusion, Mr. Tung said, "The Hong Kong General Chamber of Commerce looks forward to China's WTO membership. While the impact on different sectors may vary, we believe that with enough preparation - to learn more about China, to explore new business partners or clients, to restructure or improve in niche areas - Hong Kong companies can grasp the vast opportunities and meet the challenges."

Media Inquiries: Dr. Eden Woon, Director (2823-1211)