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Mission to Beijing

Mainland China will continue to provide strong support to Hong Kong and its development, senior government officials told a 30-member HKGCC delegation on a two-day mission to the capital last month.

"We felt that the state leadership shows strong support for Hong Kong's development," HKGCC China Committee Chairman David Lie, who is also Chairman of Newpower Group, told The Bulletin upon returning to Hong Kong on February 20.

During discussions with senior Chinese officials, delegates learned more about the development of CEPA, and exchanged views on practical problems that they might run into when doing business in the Mainland.

Vice Minister of the Ministry of Commerce An Min told delegates that the privileges offered by the Central Government under CEPA are exclusive to Hong Kong businesses. He also urged the Hong Kong business community to take advantage of the agreement to expand their business operations in the country and contribute to China's economic growth.

"The vice minister also told us that the Ministry of Commerce will strengthen its supervision on the implementation of CEPA in the country to maximise the benefits of the agreement," Mr Lie added.

Zhou Bo, Deputy Director of the Hong Kong and Macau Affairs Office of the State Council, also reiterated that the Central Government will provide broad, long-term support to Hong Kong.

After being briefed on the Chamber's position on Hong Kong's constitutional development, Mr Zhou praised the Chamber for focusing on getting the process right, rather than the end result or the cut-off date. He also agreed with the Chamber that it is necessary to maintain the prosperity and stability of Hong Kong.

Gong Zheng, Vice Minister of the General Administration of Customs, briefed delegates on how CEPA was being rolled out, and how applications for items to be included in the initial list of 374 products that enjoy zero tariff are progressing. He also assured delegates that the zero-tariff privilege for made-in-Hong Kong goods would not be abolished.

Delegates also learned about the latest customs clearance measures in Guangdong Province, including the mutual recognition of cigarette and alcohol inspections, an automatic customs checking system in Shenzhen and the implementation of a co-location clearance system on the Western Corridor. 

Li Ruogu, Assistant Governor of the People's Bank of China, discussed China's efforts to reform the banking sector and also spoke about the value of the RMB. He said China Construction Bank and Bank of China became the first two state-owned commercial banks to be restructured because they have comparatively fewer non-performing loans. The two banks will write off part of their bad debts by issuing bonds. When their non-performing loan ratios drop to less than 5 percent and capital adequacy levels rise to more than 10 percent, the banks will start inviting strategic investors to prepare for listing, he said.

Commenting on the value of the RMB, Mr Li stressed that the currency can only be adjusted if China's economic conditions warrant it, and that the fall of the US-dollar is a fiscal problem that America must fix itself. He also said that the RMB will not be revalued in the near future, despite many people speculating that it would be adjusted.

In addition to meetings with An Min, Mr Zhou, Mr Gong and Mr Li, members also met: Hao Zhaocheng, Vice Minister of the State Administration of Taxation, and Liu He, Deputy Director of Office of the Central Leading Group on the Financial and Economic Affairs for State Information. Yu Ping, Vice President of CCPIT hosted a dinner for the delegation.