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HKGCC Mission to Beijing

SAR to play key role in Mainland's development - Hong Kong's middleman role will grow upon China's WTO accession, Chinese leaders tell Chamber delegation in Beijing

Chinese leaders reiterated their confidence to delegates of the Chamber's annual high-level mission to Beijing from June 14-15 that Hong Kong's importance as a bridge for foreign enterprises tapping into the China market would not diminish upon its entry into the World Trade Organization.

With the development of 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. The rate of foreign investment flowing into Mainland China has risen continually since the country embarked on economic reform. Hong Kong has acted as an important middleman for many of those foreign enterprises setting up in the Mainland. Moreover, the SAR's businesses themselves account for a substantial proportion of investment being ploughed into projects in China.

In consolidating Hong Kong's competitive edge, international business groups here have an important role to play, as do efforts of the local business sector. However, local businesses and international enterprises both need to acquire a more in-depth understanding of China's economic development and market situation.

This year's delegation to Beijing, led by HKGCC Chairman Christopher Cheng, included chairman from 16 international chambers and demonstrated Hong Kong's advantage of being a truly international metropolis.

Chinas Economic Development The Tenth Five-Year Plan

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. It is estimated that during the Tenth Five-Year Plan, economic growth in China will average 7 per cent.

Vice Premier Li Lanqing told delegates that the recent unfavorable development in Sino-U.S. relations does not seem to have influenced bilateral trade. But he noted that the slowing U.S. economy could adversely affect China's trade with the country. However, Vice Premier Li remained optimistic about the prospects of both economies. He believes the United States is just undergoing a market adjustment and the probability of an economic crisis is minimal. Even though China survived the Asian financial turmoil relatively unscathed, the current pressure on the Mainland's exports will stimulate Chinese enterprises' to improve, he said.

Vice Minister Wang Chunzheng of the State Planning Development Commission explained that the key objective of the Tenth Five-year Plan is to try and balance the country's economic structure.

Mr Wang encouraged Hong Kong companies to share their professional knowledge, their management experience, and their strength in fund raising capabilities to expand their involvement in the Mainland's future economic development.

Vice Premier Li also told delegates that environment protection will feature prominently in the country's development plans, and that it has already entered into many cooperation projects with foreign enterprises to utilise advance technologies to help protect environment in the Mainland.

Chinas Entry into the WTO

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.

MOFTEC Minister Shi Guangsheng 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 on June 18 on related issues in preparation for the 16th 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.

Long-term multiple Visa for Expatriates in Hong Kong

In their meetings with Vice Premier Li Lanqing and Deputy Director Chen Zuoer of the Hong Kong and Macao Affairs Office, members of the delegation suggested that expatriates with permanent resident status in Hong Kong be granted either visa-free permits or a longer-term multiple entry visa. The Vice Premier said the suggestion would be given paramount consideration. Deputy Director Chen also told the delegation that his office would forward details of the proposal to the Ministry of Public Security - the responsible ministry - and would embark on a feasibility study of the proposal.