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Economic recovery around
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SAR is a global player, not merely a
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WTO heaven, or WTO hell?
SAR to suffer short, sharp recession, but will recover in mid-2002
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WTO challenges to boost Hong Kong SAR's edge
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i-Perkin
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China's WTO membership no threat
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Study Mission returns from Guangxi
and Yunnan
I found my roots
CHAMBER PROGRAMMES
January 2002 Issue  China's WTO membership no threat to Hong Kong  SAR's financial hub status and middleman role will only expand
with Mainland's WTO entry, China's top trade negotiator says
China's opening-door policy has entered into a new phase with its accession to the WTO and Hong Kong will continue to be one of the greatest beneficiaries, China's chief WTO negotiator Vice Minister Long Yongtu said. Speaking at the Chamber's 140th Anniversary Distinguished Speakers luncheon on November 29, Mr Long was adamant that Hong Kong's position as a financial and shipping hub would not be undermined. "Hong Kong should not have any doubt about that," he told the audience. "I do not believe that any city, even Shanghai, can be compared with you."The Mainland's policy constraints, which for the foreseeable future do not include liberalising its capital markets, or making its currency convertible, will ensure that "Hong Kong will definitely maintain its role as the regional financial centre," he said.The percentage of goods moved through Hong Kong will likely shrink in the years following WTO accession, but the tremendous increase in the volume of cargo flowing in and out of the Mainland will actually result in more business for the shipping sector. Mr Long said he sees tremendous opportunities for Hong Kong's professional service sectors, especially legal and accounting, to prosper in a post-WTO China. The territory will also continue to play a vital role as a bridge for foreign companies entering into the Mainland. In Europe, Mr Long said many medium and small sized businesses are eager to come to China, but they lack the resources and knowledge of transnational firms. This is where SMEs in Hong Kong can continue to play a vital role of guide, consultant and to help SMEs from Europe and North America to enter the Mainland market. "Mainland SMEs are also ready to go out and invest," he said. "They also need partners. They also need guidance, and I think Hong Kong's SMEs can play a very important role in helping investors go into the Mainland and also helping Mainland SMEs expand their markets overseas."But he warns that while Hong Kong does have many advantages, businesses will need to work as hard as they used to when China first started its opening-door policy. "Everyone remembers how hard working those Hong Kong guys were," he said.Regarding the establishment of a Free Trade Area agreement, Mr Long said the Central Government is giving the proposal very serious consideration. He hopes the agreement would create a kind of framework which would be WTO-rules consistent, while at the same time bring stronger trade ties between Hong Kong and China. Though in the very early stage of studying the proposal, Mr Long said the Mainland government seriously thinks that the entry thresholds in some of the sectors like banking, insurance and others are much too high for small economies, including the developing economies. "The Free Trade Agreement is a deviation from the principle of MFN [Most Favoured Nation trading status]. This deviation was not started by us -- many WTO members already have free trade agreements. They have already deviated from the MFN principle. If they can do it, we can do it too," he said.Politically and legally, such an agreement could be possible between the Mainland, Hong Kong and Macau, but including Taiwan within the agreement would not be as simple. "If the Taiwan authorities even dare not talk about the three direct links then we have a political difficulty," Mr Long said. "How can we proceed with some substantive negotiations on a Free Trade Agreement. I would like to see some sort of agreement between these four parties, but first and foremost we need to overcome these political difficulties." |
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