EU, HK benefit from fruitful trade, investment relationship

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EU, HK benefit from fruitful trade, investment relationship

(Xinhua) 09:26, November 24, 2013

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HONG KONG, Nov. 23 -- European Commission President Jose Manuel Barroso said here that European Union and Hong Kong have benefited from fruitful trade and investment relationship, media reported Saturday.

Speaking at an activity hosted by the European Chamber of Commerce, Barroso said that Europe and Asia represent half of the world population, more than half of the world's GDP and 55 percent of world trade.

"These are impressive figures, which show the centrality of Europe-Asia relations in today's world. This relation is indeed key for the world's prosperity and stability," Barroso said.

The president of European Commission said that one of the pillars of relationship between Europe and Asia and even global growth is the EU-China relationship.

"We now have dialogues in almost all areas relevant to each other's development, political, economic and people-to-people."

He added that at the very heart of this relationship with China is EU's support of the principle "one country, two systems."

Barroso said that Europe companies are playing a key role in Hong Kong's economy: roughly 2,000 European firms are based on Hong Kong, and nearly 453 of them set up regional headquarters.

In addition, according to Barroso, European products in the last two years have grown particularly on the back of robust demand for luxury goods, food, wine, cars and machinery.

"Hong Kong is Europe's 20th largest trading partner for trade in goods and our surplus is increasing, with a record of 23 billion (Euro) out of a total trade in goods of 44 billion (Euro)."

Barroso said that Hong Kong also contributes greatly to the European economy.

"It is a large investor in the European Union, ranking eighth in terms of stocks and sixth in terms of flows, both statistics are from 2011."

He noted that Hong Kong is often European companies' starting point for their activities in the rest of Asia.

With 176 European companies registered as 'Hong Kong Service Suppliers,' the European Union is also the leading source of foreign companies using Hong Kong as the hub to mainland China, enjoying the provisions of the Closer Economic Partnership Arrangement," Barroso said, adding that 17 percent of all European investment in mainland of China flow through Hong Kong.