In support of the Central Government's policy, the Chamber earlier this year drew up a schedule of programmes to help local businessmen and their Mainland counterparts in the west better understand each other's business environment and opportunities that exist there.

The first of these programmes was the recent study mission to northwest China's Xian, Lanzhou, Dunhuang and Urumqi from July 30 to Aug. 6.

The 22-member delegation was led by Chamber China Committee Chairman and Chief Executive Officer of Hong Kong Dragon Airlines Ltd. Stanley Hui. Chamber Director Dr Eden Woon accompanied the mission.

"This mission to northwest China has deepened the Chamber's understanding of the region," Mr. Hui said upon his return to Hong Kong. "Hong Kong businessmen generally regard the northwest as a relatively remote and slowly developing region. But after this first-hand encounter, we now know that northwest China is a place with abundant resources, large markets, and cutting-edge industries. With the right conditions, the northwest offers great potential for Hong Kong businesses to tap opportunities there."

Delegates were warmly received by respective officials, including Governor of Shaanxi Cheng Andong, Vice Governor of Gansu Han Xiuguo and Chairman of Xinjiang Uygur Autonomous Region Abdul Ahat Abdurixit. Delegates also received briefings on the status of development in the region by mayors and foreign trade and investment officials from the cities visited.

As a result of the visit, several delegates have started concrete discussions for possible business cooperation on local projects in the region.

Shaanxi Province
Situated in the geographical heart of China, Shaanxi Province consists of three main areas -- the Northern Shaanxi Plateau, the Guanzhong Plain and the Qinba Mountainous Region. The Northern Shaanxi Plateau is rich in natural resources and is a base for animal husbandry. The Guanzhong Plain is Shaanxi's industrial base and produces much of the province's agricultural produce, while the Qinba Mountainous Region has abundant reserves of natural resources.

Xian is the provincial capital and an important industrial centre, having long served as the centre of finance, commerce, trade, research and education in the northwest.

During the visit, delegates acknowledged Shaanxi's role in spearheading development of the western region. They also acknowledged the geographical advantages, local talent in high-tech industries and resources available in Xian.

This historic city not only has the ability to become a hub interlacing the eastern and western regions, but it can also combine its scientific research capability with Hong Kong's strengths in developing technology applications and new markets. Several members are looking at Xian as a base for domestic retailing and as a processing centre in the northwest region.

Gansu Province
Gansu has a population of 25.2 million -- 9 per cent of which are from ethnic minorities -- and its capital, Lanzhou, is a commercial centre and transportation hub for the region. The province's abundant resources makes it one of China's most important production bases of non-ferrous metals such as copper, aluminium, nickel, lead and zinc. Reserves of coal and oil are also considerable. Due to its mild climate, Gansu's agriculture industry is also strong, and its vast rural areas make it ideal for developing animal husbandry.

During the trip, delegates visited Mingsha Sand Dunes and Magao Caves in Dunhuang. Delegates said they feel Gansu Province is rich in tourism resources which have yet to be fully tapped. Members also expressed their views during meetings with mayors of Lanzhou and Dunhuang respectively that Gansu and particularly Dunhuang should focus on developing tourism related projects as a way to promote China's cultural treasures.

Xinjiang Uygur Autonomous Region
Xinjiang is the largest autonomous region in China, bordering eight central Asian countries. It is China's largest cotton growing base and also has substantial mineral, white oil and gas reserves. The three major industries in the region are petrochemical, textile and light industry.

The region's capital is Urumqi, which enjoys the same preferential policies as coastal cities. The Chamber delegation learned that strong border trade and abundant tourism resources in Xinjiang Autonomous Region are the main incentives for Urumqi to attract foreign investment. The geographical distance between Xinjiang and Hong Kong, however, has kept Hong Kong investment in the province at only US$250 million to date. Still, given Urumqi's vibrancy, the Central Government's strong push to open up the western region, and more liberalised investment policies, members of the delegation felt that Xinjiang makes an ideal location for foreign investors looking to set up a business base in the northwest.

Since it announced its policy to develop the northwest of the country, the Central Government has continuously been improving the infrastructure of the region. Therefore, companies investing in light industries in the northwest region would have market access not only to the northwest but also the entire central Asia region.

Numerous Opportunities
China's imminent entry into the World Trade Organisation (WTO) will benefit not only its coastal areas but also the entire country. This will expedite the development of the hinterland and pave the way for new ventures. Hong Kong needs to look closely at the west for business opportunities after China's WTO entry.

The 'near-west' is rich in high-tech institutions and talent. Xian, for example, is a well-known technology centre in China. Cities like Chengdu, Chongqing, and Lanzhou are also strong in technology and produce many high-tech professionals every year. These are valuable resources that China and Hong Kong can tap in the course of transforming to the 'new economy.' The Chamber is already helping some members utilise high-tech personnel from the west in their companies.