The Bulletin

Chamber in Review

The Bulletin. March 2023

Patrick Yeung, CEO of HKGCC
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International Connections

Mariana Campero, Senior VP International for De la Calle, Madrazo, Mancera (CMM), a Mexican consultancy firm that helps companies do business and invest in the country, called on the Chamber on 6 February. The Chamber’s Americas Committee Chairman Evaristo Trevino Berlanga, Vice Chairman Mark Michelson and Bradley Harker, Senior Commercial Officer at the U.S. Consulate General, welcomed Campero and discussed Mexico’s growing importance as a key nearshoring destination.
She said Mexico has a lot of added value to offer in terms of competitiveness, strategic advantages and incentives. Since Mexico started promoting special economic zones five to six years ago, around 50% of the companies operating in the zones are now Chinese investors. Nearshoring has become a growing trend as Chinese and international companies move production closer to customers to limit their vulnerability to shipping problems and geopolitical tensions, as well as to sidestep U.S. tariffs.

Regina Kwon and Hong Seok Choi from Invest Seoul’s Investment Strategy Team met with Asia & Africa Committee Chairman Jonathan Lamport and Chamber secretariat on 16 February to explore possible collaboration.
Kwon and Choi introduced the work of Invest Seoul and said the government-backed body was offering attractive tax exemptions for investors going into Seoul. Their team will visit Hong Kong later in the year to meet with potential investors and assist them in their ventures. Both sides agreed to work closely by organizing events to help members get to know the opportunities in the region.

Consul General of the State of Kuwait Naser S. Alghanim paid a courtesy visit to the Chamber on 31 January. HKGCC Deputy Chairman Agnes Chan, CEO George Leung, Asia & Africa Committee Chairman Jonathan Lamport and Vice Chairman Andrew Wells welcomed the CG and his team, who visited the Chamber to explore ways to strengthen Hong Kong-Kuwait ties.
CG Alghanim said Kuwait had a strong financial and banking sector, led by some of the largest banks in the region including the National Bank of Kuwait and Kuwait Finance House, a leader in Islamic banking. The country was also home to one of the top stock exchanges in the Middle East. He said Kuwait was diversifying its economy and regarded China as their key partner, demonstrated by the fact that the Kingdom has four diplomatic missions in the Mainland and Hong Kong.

Soaring energy costs, inflation and the Russia-Ukraine war have exacted a heavy toll on European countries, contributing to a grim economic outlook for 2023. Speaking at the Europe Committee’s meeting on
8 February, Eberhard Brodhage, Founder of Asia Europe Business Partners Ltd, said economic growth in the Euro zone was expected to fall from 3.3% in 2022 to 0.3% this year, according the European Commission’s forecast. Given the business environment in the region was fraught with uncertainties caused by a myriad of factors, including higher production cost, rising interest rates, and supply chain constraints, some countries will have to work hard to avoid falling into a recession. However, Brodhage forecast things should start to improve in 2024, with Ireland being the strongest economy projected to grow 3.1% followed by Poland and Hungary (2.6%) and Spain (2%).

We had a very insightful discussion on 21 February with Jonathan Marshall, who recently arrived in Hong Kong to head up the British Consulate’s Economic and Global Issues Section. Europe Committee Chairman Davide De Rosa and Vice Chairman Alfonso Ballesteros welcomed Marshall, who was eager to hear the business sector’s outlook for Hong Kong now that we have fully reopened following the Covid-19 pandemic.
Both De Rosa and Ballesteros said that they were confident that with the borders fully opened, the city will quickly bounce back. They explained that Hong Kong is such a unique city with so many advantages reinforced by “one country, two systems“ that it cannot be replaced.
Marshall also expressed keen interest in learning more about the Greater Bay Area and Hong Kong’s position in this plan. Both sides agreed to work together and organize events to help British companies better understand this rapidly growing market.

Americas Committee

Mexico as a Key Nearshoring Destination

She said Mexico has a lot of added value to offer in terms of competitiveness, strategic advantages and incentives. Since Mexico started promoting special economic zones five to six years ago, around 50% of the companies operating in the zones are now Chinese investors. Nearshoring has become a growing trend as Chinese and international companies move production closer to customers to limit their vulnerability to shipping problems and geopolitical tensions, as well as also sidestep U.S. tariffs.

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Asia & Africa Committee

Understanding Investment Opportunities in Seoul

Kwon and Choi introduced the work of Invest Seoul and said the government-backed body was offering attractive tax exemptions for investors going into Seoul. Their team will visit Hong Kong later in the year to meet with potential investors and assist them in their ventures. Both sides agreed to work closely by organizing events to help members get to know the opportunities in the region.

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Exploring Collaboration with Kuwait

CG Alghanim said Kuwait had a strong financial and banking sector, led by some of the largest banks in the region including the National Bank of Kuwait and Kuwait Finance House, a leader in Islamic banking. The country was also home to one of the top stock exchanges in the Middle East. He said Kuwait was diversifying its economy and regarded China as their key partner, demonstrated by the fact that the Kingdom has four diplomatic missions in the Mainland and Hong Kong.

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Europe Committee

Europe’s Economic Outlook for 2023

Soaring energy costs, inflation and the Russia-Ukraine war have exacted a heavy toll on European countries, contributing to a grim economic outlook for 2023. Speaking at the Europe Committee’s meeting on 8 February, Eberhard Brodhage, Founder of Asia Europe Business Partners Ltd, said economic growth in the Euro zone was expected to fall from 3.3% in 2022 to 0.3% this year, according the European Commission’s forecast. Given the business environment in the region was fraught with uncertainties caused by a myriad of factors, including higher production cost, rising interest rates, and supply chain constraints, some countries will have to work hard to avoid falling into a recession. However, Brodhage forecast things should start to improve in 2024, with Ireland being the strongest economy projected to grow 3.1% followed by Poland and Hungary (2.6%) and Spain (2%).

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Growing U.K.-Hong Kong Business

Both De Rosa and Ballesteros said that they were confident that with the borders fully opened, the city will quickly bounce back. They explained that Hong Kong is such a unique city with so many advantages reinforced by “one country, two systems“ that it cannot be replaced.

Marshall also expressed keen interest in learning more about the Greater Bay Area and Hong Kong’s position in this plan. Both sides agreed to work together and organize events to help British companies better understand this rapidly growing market.

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