Roundup: HK Serves as Global Trade Platform for Guangdong, HK, Taiwan

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Last updated at: (Beijing Time) Wednesday, August 28, 2002

Roundup: HK Serves as Global Trade Platform for Guangdong, HK, Taiwan

Hong Kong has become a global trade platform for Guangdong, Hong Kong and Taiwan, thanks to its free market economy and advanced service industry.

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Hong Kong has become a global trade platform for Guangdong, Hong Kong and Taiwan, thanks to its free market economy and advanced service industry.

At the Guangdong-Hong Kong-Taiwan Economic Cooperation Forum that was held in Hong Kong Tuesday, participants agreed that Hong Kong has been playing an important role in promoting the personnel exchange and free flow of cargo and capital among Guangdong, Hong Kong and Taiwan, linking the three sides to the world market.

Since the return of Hong Kong to the motherland in 1997, the former economic and social system of Hong Kong has remained unchanged and Hong Kong has continued to be an international trade, financial and shipping center.

So far, more than 3,200 transnational corporations have set up their regional offices and headquarters in Hong Kong. The cargo transport volume of the Hong Kong International Airport and the container handling capacity of Hong Kong have remained on the top of the world for years. Hong Kong has been ranked as the freest economy in the world for eight consecutive years.

Hong Kong's economic infrastructure and free market policy enabled Hong Kong to serve as a global trade platform for Guangdong, Hong Kong and Taiwan.

Under the new economic situation following the entry to the World Trade Organization (WTO) by both sides of the Taiwan Straits, the role of Hong Kong as a global trade platform will be critical to the economic expansion of the three economies.

Tung Chee Hwa, chief executive of the Hong Kong Special Administrative Region (SAR), said that in order to make Hong Kong one of the most important cities in China and the world city of Asia, Hong Kong must strengthen cooperation with the Pearl River Delta region in Guangdong Province.

Hong Kong and the Pearl River Delta region have a population of50 million, with a combined GDP of 250 billion US dollars in 2000.

Economists predict that the GDP of Hong Kong and the Pearl River Delta region would exceed 500 billion US dollars in 10 years, if both sides maintained their economic growth rate. Hong Kong andthe Pearl River Delta region are surely able to develop into a huge and vigorous economic zone.

In order to give full play to the role of Hong Kong as a bridge of international trade, Hong Kong adheres to the policy of the free market economy, according to Henry Tang, secretary for commerce, industry and technology of the Hong Kong SAR.

Under the policy of free economy, there is no restriction on inflow and outflow of funds. Enterprises in Hong Kong are free to invest anywhere in the world and every year, some delegations from mainland provinces and overseas would come to Hong Kong to raise funds.

The status of Hong Kong as an international financial center can help companies from the mainland, including the Pearl River Delta region, and Taiwan to raise funds and go public in Hong Kong as a means to explore the new market.

In spite of the weak market, some 100 companies have planned to be listed in Hong Kong this year, including some 50 mainland-related companies and 4 Taiwan companies.

Moreover, Hong Kong has a well-developed service industry, which can offer professional service for enterprises on both sides of the Taiwan Straits.

In addition, enterprises on the both sides of the Taiwan Straits will find more convenience in Hong Kong's bilingual systemin their market expansion overseas.

To enable the free travel of people from the mainland and Taiwan, the Hong Kong SAR government simplified the visa approval procedure for business travelers from the mainland since December 2001.

At present, an average of 4,700 business travelers from the mainland visit Hong Kong every day, compared to that of 3,000 lastyear.

Meanwhile, the Hong Kong SAR government attaches much importance to unofficial and business exchanges between Hong Kong and Taiwan, and launched the iPermit scheme to give immediate approval of travel visa for Taiwan residents to Hong Kong.

A new Hong Kong-Taiwan air agreement was signed in June this year. The number of air flights between Hong Kong and Taiwan has greatly increased.

Tung Chee Hwa said at the forum that China's entry to the WTO will surely take the economic development of Hong Kong and the Pearl River Delta to a new height and that the further opening of the country will offer more opportunity for cooperation between Hong Kong and Taiwan.

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