Chamber China Committee Chairman and CEO of Dragon Airlines Stanley Hui led a Chamber delegation to attend the China Fair for International Investment and Trade (CFIIT) in Xiamen in early September. Under the banner "Improving the Investment Environment," this year's fair explored bilateral and diversified investments under the opportunities and challenges of China's entry WTO.

During their meeting with MOFTEC Vice minister An Min, concerns about China's policy in opening up the banking and legal services, courier business and other service sectors were raised. To allay their fears, Mr An said that China will stick by its WTO commitments and open the services sectors in compliance with its WTO schedule.

He also revealed that the Central Government had expressed their concerns about the progress of the consultation of CEPA, but realised that reaching a final result takes time.

Despite Hong Kong's current economic difficulties, he said that as a free-trade port, Hong Kong would not easily be superseded by any Mainland city, because the territory's sound regulatory regime could not easily be duplicated.

He was similarly upbeat on China's future economic outlook. In the first half of this year, China's year-on-year GDP was up 7.8 per cent, which he said will allow it to reach its predicted 7.8 per cent target for the whole year.

"The first half of 2002 saw double-digit growth in both imports and exports. In addition, China attracted a total of US$44 billion in contractual foreign investment during the first six months of this year, up 31.5 per cent over the same period last year. All of these factors indicate that China's entry into the World Trade Organisation (WTO) has created a win-win situation for both China and the rest of the world," Mr An said.

Delegates also attended the International Investment Forum to listen to MOFTEC Minister Shi Guangsheng deliver his speech on "Strengthen Investment Cooperation, Promote Common Development."

According to Mr Shi, China has adopted various macro adjustment and control measures, while at the same time implemented positive fiscal policies and enhanced foreign trade and economic cooperation. These measures have helped China maintain its rapid, yet stable, economic growth, he said.

As foreign investment continues to flow into China, the industries and regions that it is being pumped into are also enjoying strong growth.

In particular, China's foreign exchange reserves are now at a level -- US$246.5 billion -- that allow it to invest overseas. As of the end of June 2002, China had set up 6,758 non-financial operating organisations outside China, with a contractual investment of US$13.2 billion.

Finally, he assured foreign investors that China will continue to improve the fairness and transparency of its investment environment. He also said the Mainland would also further open the service and trade sectors to fulfil the needs for its own development and its WTO commitments.

During the three-day trip, members of the Chamber delegation also met with government officials from Shanghai, Beijing, Hainan, Zhejiang, Jiangsu, and Hebei, who spoke on the investment environment and policies of the respective jurisdictions.

Delegates lauded the double-digit economic growth in Shanghai, Jiangsu and Zhejiang in recent years, to which officials appreciate the significant investments made by Hong Kong businesses in these regions.

The Vice Governor of Hebei Province said he expected more foreign investors looking to enter the Beijing market would take full advantage of his province's location next to the capital.

Meanwhile, officials from Hainan Province, which is well known for its tourism and mineral resources, invited the Chamber to organise a mission to the province in the near future.