Chamber issues Statement on Competition

Competition is a key to Hong Kong's competitiveness, according to the Hong Kong General Chamber of Commerce Statement on Competition issued today. "The Statement is an expression of the Chamber's commitment to preserve and enhance competition. It is the result of extensive discussion and deliberation by the Chamber's General Committee," said Chamber Director Dr Eden Woon.

The purpose of the Chamber Statement is to promote pro-competitive practices among Chamber members, so as to preserve and enhance free competition. One key paragraph of the Chamber Statement read: "The Chamber urges members to refrain from restrictive practices. These can include collusive or predatory behaviors that impair economic efficiency or free trade."

"We believe the economy works best when businesses compete on a level playing field," said Dr Woon. "For this reason, we promote an open and fair competitive environment here, and advocate the same open environment for Hong Kong companies elsewhere."

In the Statement the Chamber called for a self-regulatory approach among the business sector to promote competition. The Chamber "encourages specific industries to develop, through their respective associations, statements or codes of practice to promote competition within their own sectors."

"We consider that a self-regulatory approach is preferable to a legislative approach, such as through enacting a competition law," explained Dr Woon. "The experience of other countries suggests that many administrative problems will be encountered in enforcing a competition law."

The Chamber's view, as reflected in the Statement, is that most business sectors, given the right conditions and encouragement, can regulate their own affairs and take account of ethical, legal and moral standards.

Instead of a blanket approach to regulation, the Chamber continues to advocate a sectoral approach. According to the Chamber Statement, "greater competition can be achieved through pro-competitive regulatory reform, as evidenced by the substantial benefits brought about by the de-regulation in the telecommunications industry."

Chamber Statement follows.

Enquiries: Dr Eden Woon, Director (Tel : 2823 1211)