Interview: China's WTO Entry to Provide Huge Market for HK

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Last updated at: (Beijing Time) Friday, June 14, 2002

Interview: China's WTO Entry to Provide Huge Market for HK

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Peter Woo Kwong-ching, chairman of Hong Kong Trade Development Council and head of conglomerate Wharf Group, told Xinhua that China's entry into the World Trade Organization (WTO) has provided a huge inland market for Hong Kong.

"The trade between Hong Kong and Chinese mainland accounted for 6 percent of Hong Kong's total trade value in 1976. The share has grown to 36 percent now. As the mainland opens further, the share will rise more," Woo said.

He suggests that manufacturing in the Pearl River Delta and setting up a sales office in Hong Kong be a successful business mode of Hong Kong, which combines the low labor cost of the mainland and the high quality service of Hong Kong.

This is particularly helpful for the overseas small and medium enterprises (SME) in reducing risks, he said.

Woo described Hong Kong as a two-way platform, where overseas investors can set up a base for entry into the mainland market and the mainland companies can sell their products overseas.

While some multinationals are going directly to China, the world's SME companies are still setting up in Hong Kong for their China business.

According to statistics, in the past two years, the number of U. S. companies in Hong Kong increased by 33 percent, those from Japan by 44 percent, Australia by 55 percent and Europe by 23 percent.

"The size of the offices range from about 30 to 80 people. The number of SMEs far exceeds the number of multinational corporations, which means more new foreign offices in Hong Kong," Woo said.

"Hong Kong's franchise as a gateway to China is clearly not diluted. Hong Kong's advantages remain intact, whatever the critics say. The city has the location, strong institutions including the rule of law, a transparent and low-rate tax system, the free flow of information, people, capital and merchandise," he said on the eve of the fifth anniversary of Hong Kong's return to China.

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