China has remained one of the few beacons of hope in the global economy over the last few years, weathering both man-made and natural disasters remarkably well. From the economic fallout following the terrorist attacks on the United States and the war in Iraq, to more recently the SARS outbreak, China seems to be rewriting the rules on how best to run an economy.

China observers point out that the country has, for the most part, managed to avoid the landmines that have maimed most other developing economies. Its economy is growing so fast, in fact, that it is having to carefully apply the economic brakes to stop it overheating. It seems China can hardly put a foot wrong.

For its fabled two-decades of growth since Deng Xiaoping told everyone "to be rich is glorious," reform, development and stability are the three key cogs that have kept China's economic engine running smoothly, Madam Wu Yi, Vice Premier of the State Council, said.

Speaking to the 40-strong HKGCC delegation to the capital on September 1-2, she reminded the Hong Kong business sector that it must play an active role in maintaining social stability and economic growth in the territory.

Hong Kong's future development and status as a premier international business hub needs to be maintained through the creation of new ideas, and in expanding the growth in partnerships with more foreign enterprises looking to tap into the Hong Kong and Mainland markets.

CEPA topped the list of issues that the delegation wanted to discuss with Chinese officials during their visit. The Chamber first proposed the RTA concept in 2000, as it believes that the agreement will stimulate business opportunities for both Hong Kong and Mainland Chinese firms as it will further integrated economic development, especially between the HKSAR and the Pearl River Delta.

Madam Wu Yi said she believes that the substantial concessions provided under CEPA is excellent news for Hong Kong's economy. Although not all sectors and industries will be able to directly benefit from the agreement, it should have a strong run-off effect as it attracts more foreign investors to Hong Kong. It will also strengthen confidence in the economy here.

But she pointed out that CEPA is not a panacea for Hong Kong's economic woes, and urged businesses to capitalize on CEPA to sharpen their competitive edge and raise Hong Kong's attractiveness to international investors.

An Min, Vice Minister of Commerce, told the delegation that both the Mainland and Hong Kong negotiators would officially sign the relevant annexes at the end of September.

A stable and regulated currency management system, based on market demand and supply, would benefit the economic development in China and in turn, benefit the economic development of the world, Madam Wu said.

As the world's largest developing country, China needs to maintain a deep pool of foreign exchange reserves to finance its economic development, such as the 10th five-year plan in which it plans to import advance technology and equipment to upgrade its economy.

With regard to the opening of the qualified domestic institutional investor (QDII) scheme and allowing Hong Kong to be the RMB offshore center, Madam Wu told the delegation that these issues were undergoing serious study by the Central Government. Once conditions are right, Hong Kong would have the priority to enjoy these openings, she said.

One of the biggest hurdles in achieving this, however, is that the RMB is not yet fully convertible and regulatory mechanism would need to be set in place to stop any foul play.

During the visit, the delegation met with a number of other high-level Mainland officials. These included: Deputy Director of the Hong Kong and Macau Affairs Office Chen Zuoer; and Deputy Director of the State Reform and Development Commission Li Zibin. The delegation was hosted by Chairman of the China Council for the Promotion of International Trade (CCPIT) Wan Jifei.

The delegation also discussed how the Mainland economy was recovering from SARS, reforms to the banking sector and the handling of non-performing loans. Other key topics included planning for major infrastructure projects, such as the Hong Kong-Zhuhai-Macau Bridge and the Guangdong-Hong Kong high speed railway, as well as business opportunities arising from the development of western China.

The 40-member delegation was made up of HKGCC General Committee members and committee chairmen, as well as chairmen of eight international chambers in Hong Kong, reflecting the HKSAR's status as an international city. Liu Shanzai, Deputy Director of the Liaison Office of the Central People's Government in the HKSAR, was Honorary Advisor of the delegation.