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Chamber Programmes

Competition Policy
Does Hong Kong Need it?

Competition policy can provoke heat-ed debate at the best of times. Now that the government has published its "Guidelines to maintain a competitive environment and define and tackle anti-competitive practices" the temperature has risen a degree or two. In an effort to ease businesses' concerns that the government will enforce a competition policy on companies, Sandra Lee, Permanent Secretary for Economic Development and Labour, explained at the Chamber's February 11 roundtable luncheon how these new guidelines will work. Following is an abridged version of her talk, which has been edited for length. Members can listen to her entire speech, and observations from David Dodwell, Executive Director, Golin/Harris International Ltd, who also spoke at the luncheon, at Bulletin Online, www.chamber.org.hk.

What is competition policy? I think it is important to remember that competition is actually the cornerstone of Hong Kong's economic policy and very much our social value. Competition not just in terms of business, not just in terms of consumer interest, but competition as a social value is very much part of our life. We compete at school and we compete at various occasions. That is why competition makes us what we are and that is why competition has to be a part of our business practice as much as part of our way of life in Hong Kong.

But why do we have a competition policy? There is a lot of history behind this, but at the end of the day, in 1998 the government came up with a copy of the competition policy. First of all, government issued this competition policy not because we want to bash business, not because the certain militant quarter wanted us to make life difficult for businesses. We have this policy because we want to go into partnership with you. There is a big distinction between a competition policy and a competition law. The government's position at the moment is that we don't go for a comprehensive competition law, which happens in many other countries -- almost 90 out of 140 WTO members have this. Why? Because we believe that it is our objective in terms of our competition policy to enhance economic efficiency, to promote free trade and benefit consumers, with minimal cost. If we have a law, who will pay to enforce it? Also, will a competition policy address all issues across the board? Not necessarily.

Why do we want a competition policy instead of a comprehensive competition law at this stage? Because it goes into the fundamental principle of how the government wants to go into partnership with businessmen and the community at large so that we are all on good behaviour and we are all good corporate citizens. By maximising the market force, then everybody benefits. It is a tripartite winning situation. So it does not have to be a stick and punishment style of managing.

We want to encourage voluntary compliance and voluntary drafting of code of conduct specific to businesses' operations or sectors. One more word of reassurance, because it has been passed to me that once we issue the guidelines we are going to slap it on you with legislation, licensing conditions and everything else. No, it is not a mandatory exercise that we want to put you in a straightjacket.

Ms Lee's Speech >>     Mr Dodwell's Speech >>     Q & A   

Town Hall Forum with Lau Siu-kai

Professor Lau Siu-kai, Head of the HKSAR Government's Central Policy Unit, exchanged views with members at the Chamber's Town Hall Forum on February 23. To encourage a free dialogue this event was for members only and closed to the media.

Chamber Golf Outing

Forty-three members joined the Chamber's first Golf Outing in 2004 on February 25 at the "Valley" course of the beautiful Nansha Golf Club in Panyu, China. Douglas Leung took the Champion prize for the day for the best round.

Photo Album

Full list of Chamber programmes in February >>