Chamber Chairman C C Tung led a 38-member delegation to Shanghai and Jiangsu Province on December 12-17, 1999. The delegation, composed of representatives from a wide spectrum of industries, organisations as well as Consular Generals in Hong Kong, called upon prominent mainland officials and visited many of eastern China's most dynamic economic development zones.

Shanghai Mayor Xu Kuangdi (right) presents Chamber Chairman CC Tung with a souvenir album "Images of Shanghai."

Shanghai Mayor Xu Kuangdi formally welcomed the delegates with a dinner and briefed them on the city's economic and investment climate. He said that China's economic reforms, which were initiated in 1992, have increased the country's attractiveness to international investors. Revisions to industrial construction regulations, completion of badly needed infrastructure projects and the launch of a social security scheme have also helped elevate the status of Shanghai and improve the lives of its citizens.

Given Hong Kong's vast experience and mature management skills in developing tertiary industries, such as finance, information technologies, consulting and intermediary industries, SAR businesses could play a leading role in helping Shanghai improve such services which are in strong demand by its developing industries, he said.

Jiangsu Vice-Governor Wang Rongbin (right) discusses with Stanley Hui, CEO of Dragon Air and group leader of the delegation, the investment climate in Jiangsu.

Potential for co-operation between Shanghai and Hong Kong in developing new technologies, as well as intellectual exchanges, also offers huge potential, he added.

Liu Jinping, Vice Chairman of Shanghai Foreign Investment Commission, updated delegates on Shanghai's general economic situation, and its investment environment and policies. China recently implemented a series of new incentives to attract more foreign investment into the country. These include full VAT rebates for companies that buy domestic equipment; exemption of import-related duties for R&D centres; and special tax rates for companies whose technology development grows over 10 per cent per year.

Pudong has attracted a sizeable chunk of foreign investment in China, said Vice Chairman of Shanghai Pudong New Area Administration Ruan Yanhua. According to Mr Ruan, Pudong plays a pivotal role in China's economic reform, and he describes the area as "the bridge linking China to the world economy."

Since its establishment in 1990, some 5,630 foreign-funded businesses have invested US$28 billion in the special economic zone, he said. The main fields of investment are in electronics, pharmaceuticals, transportation and finance, but Mr Ruan said he hopes more high-tech industries can set up in the zone.

Delegates also visited other trade zones in the region, among them was Shanghai's Waigaoqiao Free Trade Zone, which is believed to be the most economically free jurisdiction in China.

Another park believed to hold great potential is the Zhangjiang High-Tech Park Development Corp. Dai Haibo, President of the park, discussed with delegates his ideas on possible areas of co-operation with Hong Kong businesses and technology development.

Songjiang Industrial Zone Director Pan Longqing introduced the investment environment and policies in Songjiang to the delegates, who also visited three enterprises in the zone: Shanghai Meadville Electronics Co. Ltd; ICI Swire Paints (Shanghai) Ltd., and New Island Printing Co. Ltd., to find out firsthand why the companies invested in Songjiang.

While in Shanghai, the delegation took the opportunity to visit the Shanghai Stock Exchange, where the exchange's Executive Vice President Li Mingshan brought the delegation up to speed on developments of the exchange. Mr Li said he hopes Hong Kong and Shanghai can forge closer ties to accelerate Shanghai's development as a financial centre.

Delegates also called upon Wu Xiangming, President of Shanghai Airport (Group) Company Ltd., who explained how the Pudong Airport, once completed, would complement Shanghai's
Shanghai Stock Exchange.

existing Hongqiao Airport. He pointed out that most international flights would eventually be re-routed to Pudong, which will have the capacity to handle 20 million passengers and 750,000 tonnes of cargo annually by 2005. Once expansion of the airport is complete, it will be able to handle 80 million passengers and 5 million tonnes of cargo per year, he said.

On the third day of the five-day mission, the delegates travelled to Changshu, where the city's Mayor Hu Zhenming, and Secretary General Xu Guoqiang showed them around the Changshu Development Zone and Changshu Port. The delegation held a roundtable meeting with Changshu officials at which Mr Xu introduced the business and investment policies in Changshu.

Leaving Changshu behind, the delegation travelled to Suzhou, where the city's Mayor Chen Deming, and Vice Mayor Wang Guoxing welcomed the delegation. Mr Chen said that Suzhou's proximity to Shanghai and its many historical spots gives the city a unique opportunity to develop various industries inline with its economic development targets. However, he added that attracting more electronics, information technology and biomedical industries ranks high on its list of priorities to realise its goal of developing the city into an important base for high-tech industries in China.

To emphasise his point, Mr Chen showed the delegation around the China-Singapore Suzhou Industrial Park. The Sino-Singapore project, is the only project in China jointly developed by the PRC Government and a foreign government. Suzhou National New & High-tech Industrial Development Area (SND) was another rung along its ladder to becoming a high-tech centre.

The last stop of the mission was to Nanjing, Jiangsu Province. The city's Mayor Wang Hongmin, and Vice Mayor Luo Zhijun said that their city's great historical significance puts it in an ideal position to develop its tourism industry in tandem with the three industrial development zones in the city.

Qi Changyu, Jiangsu Provincial Commission of Foreign Economic Relations & Trade Vice Chairman, told delegates that 169 of Fortune's 500 companies have invested in Jiangsu Province and that Hong Kong is one of the most important partners of Jiangsu, accounting for 15,714 investment projects as of the end of 1999.

During a lunch meeting, Jiangsu Vice Governor Wang Rongbin told delegates that Hong Kong's investments accounted for 38 per cent of the 42,000 foreign investments in the province. Sharing his thoughts on China's entry into the WTO, Mr Wang said he believed that WTO membership would help open China's markets and that a more level playing field will benefit Hong Kong businesses if they are prepared to seize the opportunities that will arise.

To see firsthand the province's open door policy, the delegates visited Nanjing's three key development zones: the Nanjing New and High Technological and Industrial Development Zone, Nanjing Economic and Technical Development Zone, and Jiangning Economic Development Zone. These three parks have already developed into several parks in one zone.

Ma Li, Vice Director of Nanjing Economic & Technical Development Zone, Wang Jianhua, Director of Jiangning Economic Development Zone, and Cai Jingdong, Deputy Director of Nanjing New & High Technology Industry Development Zone briefed the delegates on the investment environment and policies of their respective zones at separate meetings. n

Nanjing Mayor Wang Hongmin (2nd from right) explains the importance of Hong Kong investors in the city's industrial development zones.

Delegates let their hair down and relax with an evening of karaoke.