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Chamber Beijing mission returns

Hong Kong General Chamber of Commerce's high-level mission to Beijing, led by Chamber Chairman Christopher Cheng, returned to the SAR on Friday night, ending a very successful two-day visit to the capital.

During their stay, the delegation was hosted by Chairman of the China Council for the Promotion of International Trade Yu Xiaosong. They also called on Vice Premier Li Lanqing, MOFTEC Minister Shi Guangsheng, State Development Planning Commission Vice Minister Wang Chunzheng, Executive Vice Minister of Finance Lou Jiwei, and Deputy Director of Hong Kong and Macau Affairs Office Chen Zuoer.

"Since the start of China's economic reform and the opening of its markets, the rate of foreign investment flowing into the Mainland has been rising continuously," Chamber Chairman Christopher Cheng told Vice Premier Li. "Hong Kong has acted as an important middleman and the SAR's businesses account for a substantial proportion of the foreign investment going into the huge market. With the imminent entry of China into the World Trade Organisation and the implementation of the strategy for developing the Western Region, Hong Kong, as Asia's World City, will be able to maintain its unique edge as a bridge between China and the world marketplace. In consolidating Hong Kong's competitive edge, international business groups in Hong Kong have to play an important role in addition to the efforts of the local business sector. Local businesses need to acquire a more in-depth understanding of China's economic development. We also need to enable international enterprises in Hong Kong to better understand the market situation in the Mainland."

During meetings with various ministries and commissions, delegates were informed that China's economic growth and tax receipts were in good shape. Under the Tenth Five-Year Plan, which focuses on liberalizing the Mainland's markets, China's economy will gradually be integrated into the global market. Vice Premier Li told delegates that the recent unfavorable development in Sino-US relations does not seem to have influenced bilateral trade. But he noted that the slowing US economy could adversely affect China's trade with the US. However, Vice Premier Li remained optimistic about the prospects of both economies. He believes the US is just undergoing a market adjustment and the probability of an economic crisis is minimal. China survived the Asian financial turmoil relatively unscathed, the current pressure on Mainland's exports will only be a force to stimulate Chinese enterprises' to improve.

On the issue of China's WTO accession, Vice Premier Li said that the Mainland economy was basically well prepared to face the opportunities and challenges expected to arise upon its entry into the world trade body. He therefore expressed his hopes that China will soon be admitted into the organization. Minister Shi also briefed the Chamber mission on developments regarding China's WTO entry. He said that China has already reached consensus with the United States on previously sticky issues, including agricultural subsidies, insurance, distribution, and foreign trade rights. China will start talks with the EU this week on related issues in preparation for the 16^th meeting of the WTO Working Party on China's admission, scheduled for June 28. He expects all unresolved multilateral issues will be finalized at the meeting, which would make it possible for the Mainland to formally enter the WTO by the end of the year.

In their discussions with the State Development Planning Commission on the role Hong Kong's SMEs can play in the Western development project, Wang Chunzheng told the delegation that SMEs account for the majority of the 390,000 foreign enterprises in the Mainland. As such, he encouraged Hong Kong SMEs to go to the West to discuss possible business cooperation and investment projects with local enterprises.

Lastly, the delegation suggested that expatriates with permanent resident status in Hong Kong can be granted either visa-free permits or a longer-term multiple entry visa. Mainland authorities said they would give the suggestion paramount consideration and that they would embark on a feasibility study of the proposal.

The 40-delegate mission included Chamber Vice Chairman Dr Lily Chiang, Chamber Legco Representative James Tien, Director Dr Eden Woon, General Committee members, chairmen of international chambers in Hong Kong representing 16 countries and chairmen of several Chamber committees.

"Concomitant with the launch of the new branding campaign, 'Hong Kong -- Asia's World city,' the Hong Kong SAR is committed to becoming a leading world city in Asia, a gateway to the Mainland and a business hub throughout the Asia-Pacific region. The Beijing delegation this time, by having Chamber Chairmen from 16 countries joining in, demonstrated the characteristics of Hong Kong as an international metropolis. I believe this visit enables international enterprises in Hong Kong to deepen their understanding of China's current economic development. Through the mission, Chinese leadership also reinforces the position of Hong Kong as a world city and a bridge for foreign enterprises tapping into the China market," Dr Eden Woon concluded.

For further information, contact Dr. Eden Woon, Director, at 2823-1211.