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Hong Kong Merchants May Find Gold out West
The Chinese Government's strategy of developing western areas means new business opportunities for Hong Kong merchants, who face more and more fierce competition from the coast of the mainland.
"Central and west China, with about 40 per cent of the nation's population, contain huge market potential," said Michael Sze Cho-cheung, executive director of the Hong Kong Trade Development Council. He spoke at a Friday seminar on the development of China's west.
West China, especially Xi'an, capital of Shaanxi Province, has rich scientific and technological resources, which could let Hong Kong merchants develop value-added electronics and telecommunications products, said Sze.
Developing western China is a government campaign to narrow income gaps among regions of China, where coastal areas are now richer.
In terms of the number of specialists and its technological advancement, Xi'an is the third biggest scientific research base of China after Beijing and Shanghai.
Xi'an has about 20,000 software engineers, and their pay is less than half of that of their counterparts in coastal areas. They work in an estimated 400 computer software companies, Internet companies and computer research institutes.
Hong Kong's capital, expertise and advanced business management can complement west China's advantages, said Wang Chunxin, an economist with the Bank of China.
Tourism also has great development potential. Tourist draws include the Silk Road and numerous scenic spots: the Terracotta Warriors in Xi'an, the Mogao Grottoes of Dunhuang and Potala Palace in Tibet.
Hong Kong merchants may invest in tourist facilities or join local authorities in developing more places for tourists to go, said Sze.
He said China's imminent entry into the World Trade Organization also will create more favourable conditions for Hong Kong merchants.
Hong Kong merchants have the capital and production capacity to make money from these resources, experts say.
Wang urged business people to see the differences between east and west while bearing Hong Kong's growth in mind.
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