 |
 |
|
|
Advertise
In the Bulletin
From the Chairman
Legco Report
From the Director
Letters
Cover Story
Economic recovery around
the corner
Government, business toiling to ensure HKSAR's future
Competition to speed up reform of Mainland's SOEs
SAR is a global player, not merely a
China middleman
WTO heaven, or WTO hell?
SAR to suffer short, sharp recession, but will recover in mid-2002
Q&A with the Business Summit Panel
WTO challenges to boost Hong Kong SAR's edge
Special Feature
SMEs uptake of IT slows
i-Perkin
HKSAR's economy feels the
effects of world events
Face to Face
With
David Ting
Business
China-Hong
Kong Free Trade Agreement
Dutch celebrate China trade excellence
WTO Corner
Member Profile
Chamber Programmes
China's WTO membership no threat
to Hong Kong
Study Mission returns from Guangxi
and Yunnan
I found my roots
| COVER STORY
January 2002 Issue
The unfolding of world events in 2001 has created much uncertainty among economists and the business community about the immediate prospects for the Hong Kong SAR, HKGCC Chairman Christopher Cheng told the audience at the Chamber's 8th Annual Hong Kong Business Summit, held at HKCEC on December 13, 2001. "In my own view, however, we are in grave danger of erring too much on the negative side of things, especially as far as business prospects are concerned," he said. It is prudent for companies to be cautious, given the slowdown of the global economy, but as far as the Hong Kong SAR is concerned, there are still grounds for optimism. In addition to weathering international political and economic events quite well, signs are emerging that the global economic and trade downturn may have already reached bottom. "We may see a couple of more quarters of negative economic growth, both in the U.S. and here," Mr Cheng said. "But beyond that there is the prospect of recovery." There is already anecdotal evidence last month of an improvement in the retail sector after several tough months. Deflation, a relatively weak property market, higher unemployment and relatively high costs of doing business continue to be thorns in Hong Kong's side, but these should disappear once recovery is in sight. Mainland China's entry to the World Trade Organisation (WTO) should speed up that road to recovery. "All of us at the Chamber are enormously optimistic about what China's entry to the WTO will mean for the Mainland itself, world trade and for the Hong Kong SAR," he said. "We realise, of course, that there will also be challenges, but overall -- like you -- we are confident about the benefits of WTO entry for the SAR." Mr Cheng said he was very pleased to hear that the Central Government is considering the free trade agreement positively, and now that this proposal is becoming a discussion between the SAR Government and the Central Government, the Chamber is studying what should be in such a free trade agreement. "We will be soliciting input from our members and will present our analysis to the SAR Government before Chinese New Year. The Chamber really feels that this kind of free trade agreement, once in place, will bring tremendous advantages for Hong Kong business in doing even more business on the Mainland," he said. Also in the direction of closer economic integration with China, the Chamber recently took the initiative -- along with other business organisations -- in suggesting to government, among other things, a further opening of the border with Mainland. If Hong Kong's business relationship with the Mainland is to prosper, then easier access to the southern Mainland is vital, he said. "In closing, therefore, I would urge you not be overcome by the present slow down in the local economy and immediate business prospects. There will be an end to the present downturn and it is likely to come sooner rather than later," Mr Cheng stressed. "We should look forward, but let us use the time now to be prepared
for it -- and to take advantage of the tremendous opportunities that will flow our way
from China's historic entry to the WTO -- provided we work hard to take advantage of
them." |
| About HKGCC | Member Services | Join Us | Contact Us | Advertising | Jobs |
|
The Chamber's Privacy Policy Statement Copyright © 1998-2008 The Hong Kong General Chamber of Commerce. All Rights Reserved. |