Members of the Hong Kong Chief Executive's Council of International Advisers gathered Thursday for their fourth meeting to discuss the global economic situation and the implications for Hong Kong.
The advisers found the presentation very useful in gaining a deeper understanding of the Tenth Five-Year Plan and an overview of the economic and business prospects.
They welcomed the prospect of China's accession to the World Trade Organization (WTO) being confirmed at the forthcoming ministerial meeting in Doha. This would lead to an expansion of business opportunities both for international and Hong Kong companies.
Chief Executive Tung Chee Hwa said, "Hong Kong is well positioned to take full advantage of this development."
"Aside from our unique geographical position, under the framework of 'One Country, Two Systems' Hong Kong offers institutional strengths which other economies in Asia cannot easily duplicate," Tung said.
"Our rule of law, international business links, financial expertise and other service sectors are very well established. We have the competitive advantage of a cluster effect in professional services, especially in the financial sector," he added.
The advisers acknowledged these competitive advantages of Hong Kong. They noted that since the Mainland began reforms and opening up, closer economic ties with Hong Kong had been established. Hong Kong had become the main window for the mainland to attract foreign capital.
Following WTO accession, the role of Hong Kong as an international financial, transportation and trading center would be further strengthened with more foreign businesses using Hong Kong as its base for approaching the Chinese market, they said.
The advisers emphasized the importance of Hong Kong investing more in human capacity building and retraining. They also welcomed the priority which the HKSAR Government placed on English training, including the provision of Native-speaking English Teachers in primary schools, believing that this would help to sustain Hong Kong's position as Asia's world city.
On the global economic situation, the Advisers noted that Hong Kong's major markets in North America, Europe, Japan had been undergoing a slowdown in the course of 2001. The situation had been exacerbated by events of September 11.
While the medium and long term economic prospects were positive, the prospects for the near term were unclear.
For Hong Kong, the advisers agreed that the SAR should continue to strengthen its economic ties with the Pearl River Delta and capitalize on the business opportunities offered by China's accession to the WTO.
This strategy would put Hong Kong in an advantageous position both in respect of weathering the short-term uncertainties and capitalizing on the eventual recovery of the global economy, they added.
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