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Enhanced HK-Taiwan Cooperation Expected with WTO Accession of Both Sides of Taiwan Straits
The forthcoming accession of the World Trade Organization (WTO) of both sides of the Taiwan Straits is expected to provide broader scopes for Hong Kong-Taiwan cooperation, given the status of Hong Kong as an international financial, trade, information and shipping center.
Hong Kong, which has been the third largest trade partner and the second largest export market of Taiwan, will continue to play a vital role in the trade globalization for both sides of the Taiwan Straits.
Statistics from the Taiwan customs indicate that the trade volume between Hong Kong and Taiwan reached 32.8 billion U.S. dollars in 2000.
The bilateral investment between Hong Kong and Taiwan totaled 5. 8 billion U.S. dollars by the end of last year, compared to the 30 million U.S. dollars in the early 1980s. Hong Kong has become the fifth largest source of foreign capital and the six largest destination of investment for Taiwan.
Economists pointed out that the economic and trade ties between Hong Kong and Taiwan in the 21st century will rely on two factors, namely, the WTO accession and the direct transport, postal and trade links between both sides of the Taiwan Straits.
As for the concern that Hong Kong's intermediary status will be faded, Michael Sze Cho-cheung, executive director of the Hong Kong Trade Development Council (TDC), said the status of Hong Kong is far beyond "a third place."
Hong Kong serves as a service center for Taiwanese investors in South China and the role of Hong Kong will expand after the WTO accession of both sides of the Taiwan Straits, he noted.
Sze predicted that both sides of the Taiwan Straits will witness more economic and trade exchanges after their WTO accession, and therefore, Hong Kong will not only maintain, but further strengthen its role as a service center in helping Taiwanese investors with their business operation in the mainland and product distribution overseas.
He pointed out that none of the mainland cities will replace Hong Kong as an international financial center immediately or in the short term.
Hong Kong banks will expand their business in the mainland and provide better service for business people from Taiwan and foreign countries, he added.
Hong Kong also owns a comprehensive and well coordinated trade support system, which the mainland lacks currently, Sze said, adding that many business cooperation, industry management and business arbitration between the mainland and the rest of the world are now conducted in Hong Kong.
With China's accession in the WTO and enlarged trade scope, the business people from the mainland and foreign countries will make more use of Hong Kong's trade support system, he believed.
In addition, he said, Hong Kong's air, road and sea transportation network ranks the most efficient and the freest in the region, and provides the most reliable and fast transportation for products of Taiwanese investors in South China.
Sze said the governments of Hong Kong and Guangdong are stepping up their economic and trade cooperation, and Taiwanese investors will surely benefit from it.
Lam Kwong Siu, director of Bank of China, agreed that the economic integration will speed up cooperation between the Chinese mainland, Hong Kong and Taiwan.
After the WTO accession of both sides of the Taiwan Straits, Hong Kong will find more opportunities for developing its service industry; heavy industry and information technology sector of Taiwan will be more active in the mainland market, and the advantage of mainland in the manufacturing industry will also increase, Lam said, adding that advantages of the mainland, Hong Kong and Taiwan will give full play in the economic integration process.
Jia-Dong Shea, chairman of Taipei World Trade Center, said opportunities and challenges will co-exist in the economic and trade ties between Hong Kong and Taiwan in the 21st century.
To seek the most benefits from both side, Shea suggested that Hong Kong and Taiwan increase exchanges on experience of human resource, investment and distribution in the mainland, while both make better use of the current resources to jointly expand the mainland market.
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