Chamber Delegation Impressed with
Huge Development Potential in Western China

A Hong Kong General Chamber of Commerce delegation has just returned to the SAR, rounding off a highly successful eight-day study mission to northwest China.

Delegates received warm welcomes from respective officials, including Governor of Shaanxi Cheng Andong, Vice Governor of Gansu Han Xiuguo and Chairman of Xinjiang Uygur Autonomous Region Abulaiti Abudurexiti. During the visit, mayors and officials from the Foreign Economic Relations and Trade Committee briefed delegates on the status of development in the region.

As a result of the visit, several delegates have started concrete discussions for possible business cooperation on local projects in the region.

The mission to northwest China focused on four cities -- Xian, Lanzhou, Dunhuang and Urumqi - and was organised in response to the Central Government's drive to develop the western region. China Committee Chairman and Chief Executive Officer of Hong Kong Dragon Airlines Ltd. Stanley Hui led the 22-delegate mission. Chamber Director Dr Eden Woon also participated in the mission.

"This mission to northwest China has deepened the Chamber's understanding of the region," Mr Hui said upon his return to Hong Kong. "Hong Kong businessmen generally regard the northwest as a relatively remote and slowly developing region. But after this first-hand encounter, we now know that northwest China is a place with abundant resources, large markets, and cutting-edge industries. With the right conditions, the northwest offers great potential for Hong Kong businesses to tap opportunities there."

During the visit, delegates acknowledged Shanxi Province's role in spearheading development of the western region. They also acknowledged the geographical advantages, local talent in high-tech industries and resources available in Xian. This historic city not only has the ability to become a hub interlacing the eastern and western regions, but it can also combine its scientific research capability with Hong Kong’s strengths in developing technology applications and new markets to develop high technology.

Delegates said they feel Gansu Province is rich in tourism resources which have yet to be fully tapped. Members also expressed their views during meetings with mayors of Lanzhou and Dunhuang respectively that Gansu and particularly Dunhuang should focus on developing tourism related projects as a way to promote China's cultural treasures.

Strong border trade and abundant tourism resources in Xinjiang Autonomous Region are the main incentives for Urumqi to lure foreign investment, the Chamber delegation learnt.

The geographical distance between Xinjiang and Hong Kong, however, has kept Hong Kong investment in the province at only US$250 million to date. Still, given Urumqi's vibrancy, the Central Government's strong push to open up the western region, and more liberalized investment policies, members of the delegation felt Xinjiang makes an ideal location for foreign investors looking to set up a business base in the northwest.

Past emphasis on developing heavy industries in the west, with little regard given to light industries, has made the northwest almost totally dependant on the eastern region to supply light industry products. As a result, regional governments in the northwest are striving to attract foreign funds to develop light industries targeted for inland distribution.

In addition, since it announced its policy to develop the northwest of the country, the Central Government has continuously been improving the infrastructure of the region. Therefore, companies investing in light industries in the northwest region would have market access not only to the northwest but also the entire Central Asia region.

“With this visit, the Chamber has furthered its understanding of the opportunities that exist for Hong Kong businesses in Shanxi, Gansu and Xinjiang. Some delegates have even embarked on possible business cooperation of several projects in the region already," Chamber Director Dr Eden Woon said.

"The Chamber will proactively develop business collaboration between Hong Kong and the western region in line with the Central Government’s policy to develop the area. Following the success of this mission to the northwest, we are now planning to visit Sichuan Province and Chongqing Municipality in November. We will also hold a training seminar in September for senior management of China's state-owned enterprises in the northwest on how they can attract foreign funds,” said Dr Woon.

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