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WTO to Lift Stopover Trade in HK
A Senior Hong Kong industry official refuted views that Hong Kong's transfer trade business will be dramatically slashed after China's entry into the World Trade Organization (WTO).
"On the contrary, I am upbeat that the stopover trade business will be strengthened as Hong Kong can act as a springboard for mainland enterprises to access the global market," said Tang Yingyen, chairman of Federation of Hong Kong Industries Sunday in Shanghai.
Tang, also a member of the Executive Council of Hong Kong Special Administrative Region, was addressing a seminar on Hong Kong Shanghai cooperation.
There has been speculation that Hong Kong will feel the heat of the WTO entry as mainland enterprises will sell their products directly in the global market, cutting the connection with Hong Kong's longstanding middlemen services.
Another factor is that more businesses move online and shipping and delivery systems in many countries are upgrading business-to-business technology.
However, Tang said Hong Kong has a strong edge over foreign firms in the mainland market as its connection with the mainland are well established.
"Hong Kong enterprises were the first among overseas business to enter the mainland market. The business began two decades ago just as China began to open its door to overseas investment.
The long presence has helped Hong Kong players understand the mainland's market, administration, legal and business systems," he said.
Meanwhile, Hong Kong and mainland share the same culture, language and tradition, he said.
Tang predicted that China's WTO entry will help Hong Kong's stopover trade to increase 20 to 30 per cent.
Hong Kong's know-how will especially benefit small and medium companies from overseas, who are interested in the mainland market.
"Although many of them are well equipped with advanced technology and products, lack of resource and experience have made it difficult for small and medium-sized firms to expand in the inland market," he said.
Hong Kong can provide them with consulting and marketing services, he said.
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