Hong Kong's role will expand after China's WTO accession, State leader tells Chamber mission

Hong Kong General Chamber of Commerce Chairman C C Tung and Vice Chairman Anthony Nightingale just returned from Beijing after leading a high-level business mission to Beijing. During the three-day mission delegates - comprised of Chamber Director Dr Eden Woon, General Committee members, and chairmen of a number of international chambers in Hong Kong and Chamber committees - met mainland senior officials. Among them were State Councillor and Secretary General of the State Council Wang Zhongyu, and MOFTEC Minister Shi Guangsheng. Received by the China Council for the Promotion of International Trade, the delegation also visited the State Economic and Trade Commission, State Planning Commission, People’s Bank of China, and the Hong Kong SAR Office in Beijing.

Commenting on the trip, Chamber Chairman C C Tung said, "With closer economic and commercial ties between Hong Kong and the Mainland, the future economic development of the Hong Kong SAR will rely on the economic prosperity of the Mainland. The main purpose of this visit is to explore Hong Kong's position in the economic development of the Mainland upon China's entry into the WTO."

Chamber delegates also presented the idea of signing a Free Trade Area agreement between Hong Kong and the Mainland. This concept has been proposed by some Hong Kong businesses as a means to lessen the impact of China's accession to the WTO on Hong Kong. Both Wang Zhongyu and Shi Guangsheng said they felt it was worthy of further study.

Wang told delegates that understanding the relationship between the Mainland and Hong Kong was essential when considering the role Hong Kong plays in the economic development of the Mainland. He said that while Hong Kong joins the WTO as an independent customs territory, it is also a part of China. Therefore, due to this unique relationship, business cooperation between the two areas will expand, and with it the importance of Hong Kong's role in the region. Both Wang and Shi also said that they agreed with the Chamber’s view expressed through its study, "China’s Entry into the WTO and the Impact on Hong Kong Business." The study proposes that with enough preparation, Hong Kong can still reap opportunities in the new business environment, and develop itself into a logistic hub, financial hub and digital hub between China and the world.

Wang also applauded the Chamber for organizing programs that dovetail with the Central Government’s policy of developing the western part of China. However, he reminded Hong Kong business that development of the western region is a long-term plan. Initial efforts focus on infrastructure and eco-environmental projects, and the processing trade now conducted in the eastern coastal region is not suitable for the west, he said. Instead, he encouraged Hong Kong investors to look at setting up high-tech processing activities in the west. In addition, with their experience in service industries and marketing, Hong Kong businesses can help enterprises in the western region adapt to the international market.

"The Chamber organizes high-level delegations to Beijing every year to enhance communication with mainland officials. These visits can help mainland officials better understand the development and needs of Hong Kong, as well as update Hong Kong businessmen on the current economic and business situation in China. After this visit, we believe that Hong Kong will still play an important role in the economic development of China after its entry into the WTO," Dr Woon concluded.

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