China's two metropolises outline future economic, trade cooperation

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Last updated at: (Beijing Time) Tuesday, October 28, 2003

China's two metropolises outline future economic, trade cooperation

Shanghai and Hong Kong, leading cities of the Yangtze and Pearl river deltas which are the major drivers of China's economic growth, have set down the outline of future economic and trade cooperation to achieve a win-win development.

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Twin-city bond to benefit nation

Shanghai and Hong Kong agreed Monday to grasp the opportunities brought about by a free-trade deal to strengthen partnership in eight major sectors ranging from airport management to financial services.

Such co-operation will not only create a win-win situation but also "make significant contribution to the country's continuous economic development," Hong Kong Chief Executive Tung Chee-hwa said Monday after meeting with visiting Shanghai Mayor Han Zheng.

He noted that while a closer bond will benefit Hong Kong and Shanghai, it will boost too co-operation between the Pearl River Delta and the Yangtze River Delta, the two most booming economic powerhouses of China.

Airport authorities of the two cities signed a letter of intent Monday calling for both sides to share management experience in safety, security and airport franchises, among other aspects.

It also states that the two airports will co-operate in airport-business management such as retail, food and beverages, and advertising.

They will, in conjunction with other mainland airport hubs, build a platform for the transfer of experience to promote the modernization in airport management throughout the country.

Hong Kong Airport Authority Chairman Victor Fung said the letter is a significant milestone in extending the scope of economic and trade co-operation. "It will align Shanghai's aviation industry with the international market, enlarging the marketplace and enhancing its status as an aviation hub," he said.

Monday's talks between officials of China's two most economically advanced cities was featured by a greater government role in promoting economic ties and produced new concepts and mechanisms for a comprehensive partnership.

Describing Hong Kong-Shanghai economic co-operation as mutually beneficial, Tung said room for such efforts will expand under the mainland-Hong Kong Closer Economic Partnership Arrangement (CEPA), which was signed last June and takes effect next year.

The two sides Monday agreed to set up a twin-city mechanism, which will be led by Tung and Han and supervised by Hong Kong Financial Secretary Henry Tang and Shanghai Vice-Mayor Jiang Sixian.

"I believe our co-operation will soon bear fruit," Han said.

Regarding the fact that Hong Kong and Shanghai are widely viewed as competitors, both Tung and Han said co-operation and common development should be the main themes in the relations of the two places with their complementary strengths.

Hong Kong, for example, can supply quality professionals for Shanghai's fast-growing economy; while Shanghai will provide more opportunities for Hong Kong investors as it further opens up various sectors, Han said. Healthy and orderly competition will provide dynamics to the economic teamwork, they agreed.

The twin cities' co-operation in eight areas

According to the leaders of the two metropolises, the cooperation between the two sides covers many areas including airport and port construction and management, logistics, Shanghai World Exposition, tourism, exhibitions, investment, trade, education, health care, sports, financial services and exchange of talents.

In the field of airport and port cooperation, Hong Kong investors are invited to take part in the construction and management of Shanghai's airport and sea port. Hong Kong companies are allowed to participate in Shanghai's international shipping management and container business.

Shanghai will be the host city of the 2010 World Exposition. Hong Kong companies are encouraged to take part in the planning, construction and management of the sites and venues of the World Exposition. Hong Kong's financial institutions are also allowed to participate in the financial services of the World Exposition.

In the area of tourism and exhibition cooperation, Shanghai and Hong Kong will establish channels of communication. Meetings between officials of the two cities will be held regularly to strengthen the popularization and promotion in this field. Drawing the support of Hong Kong, Shanghai will further explore the market of international travel.

The two sides have also agreed to enlarge the room of investment and trade cooperation. Shanghai supports Hong Kong investors to establish retail companies in Shanghai either in the form of solely owned enterprises or joint ventures.

Shanghai will also lift the access restriction for Hong Kong companies in the field of wholesale market. World first-class brands which have already had business operation in Hong Kong are encouraged to enter Shanghai.

In the field of education, universities of the two cities will strengthen exchange of students and cooperation of education and scientific research. A batch of Hong Kong teachers will be introduced to Shanghai to promote bi-lingual education in the middle and primary schools.

The two cities will also strengthen exchange of medical information and cooperation of infectious disease control.

In the area of financial cooperation, Shanghai will introduce financial talents from Hong Kong to the city. The financial institutions in Shanghai will give high-ranking posts to senior Hong Kong financial talents.

Hong Kong financial institutions, up to the standards of the Closer Economic Cooperation Arrangement (CEPA) between Hong Kong and mainland, are also welcomed to set up branches in Shanghai.

In the field of talent exchanges, Hong Kong's intermediate agencies are encouraged to open business in Shanghai. Hong Kong's talents of business management are welcomed to take up senior posts in state-owned enterprises in Shanghai.

Shanghai will improve the environment to attract more Hong Kong talents to work in the city. The exchange of government officials between the two sides will also be strengthened in the future.

Official statistics show that by the end of June, Shanghai had ratified 30,000 overseas-funded projects, one-third of which were funded by Hong Kong businessmen. The total projects involved 69.45billion US dollars of contractual overseas investment, one-fourth of which came from Hong Kong.

A new body headed by Tung Chee Hwa and Han Zheng will be formed to take the cooperation issues forward. Hong Kong's financial secretary and a deputy mayor of Shanghai will be responsible for the actual work. Meetings will be held when necessary to discuss projects of mutual interest and solve any problems that might arise.

Tung said enhanced cooperation will not only be a win-win scenario, it will also play a key role in the mainland's development, adding that although there is competition, there is also more room for cooperation between Hong Kong and Shanghai. Mayor Han said healthy co-operation will help the economic development of the two places.

By People's Daily Online

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