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Hong Kong has bounced back strongly from the SARS outbreak and Hong Kong's restructured economy has great potential. This was the message from Hong Kong's Special Representative to the European Communities, Mr Christopher Jackson, to the Swedish business community in Stockholm today (October 8, Stockholm time).
Speaking to 150 senior businessmen and officials at a 'Relaunch Hong Kong' luncheon, Mr Jackson said that there are a number of reasons for this optimism.
"Our economy has undergone six years of restructuring. A study of economics and economic history tells us that a restructured economy is an economy rich with potential." Mr Jackson said Hong Kong would also continue to benefit from China's rapid economic development. He said total Hong Kong trade had grown by almost 13% in value so far this year.
Furthermore, Hong Kong and the Mainland recently signed a landmark free trade pact, the Closer Economic Partnership Arrangement or CEPA, to come into effect on 1 January next year.
"One of the CEPA's major benefits will be much closer economic co-operation between Hong Kong and Guangdong Province, especially within the Pearl River Delta region," Mr Jackson continued.
The Pearl River Delta (PRD) is one of the world's most dynamic and diverse manufacturing basins. Thousands of international companies have set up manufacturing operations in the Pearl River Delta and thousands more are sourcing products from this strategic economic caucus. About 25% of the 120 Swedish companies in Hong Kong have operations in the PRD.
Mr Jackson said that an excellent way to enter the China market was to establish a manufacturing base in the PRD, while maintaining management and finance functions in Hong Kong.
"Large Swedish companies such as Ericsson, Volvo, Ikea and Saab/Scania have recognised the benefits of establishing operations in Hong Kong. But there are also many small and medium-sized companies in Hong Kong who recognise the potential of Hong Kong as a market in itself and as a testing ground and stepping stone into the significantly larger market of the PRD, and the Mainland as a whole."
'Gyroscope of self-interest' maintains stability
Mr Jackson said that institutional foundations such as the rule of law, independent judiciary, free flow of information, clean civil service and level playing field for business were the bedrock of Hong Kong's success and were underpinned by the 'One Country, Two Systems' principle.
"Indeed within 'One Country, Two Systems' there is a gyroscope of self-interest which maintains stability. For the Mainland Chinese authorities there is a powerful self-interest in proving to the world and to Taiwan that 'One Country, Two Systems' works. And for Hong Kong people their way of life and economic well-being are underpinned by the guarantees implicit in the formula and set out in Hong Kong's constitution, the Basic Law".
Joint Stamp Issue
Also attending the Relaunch Hong Kong event was Mr Stephan Fransius, Senior Design Manager of Posten, the Swedish post office, who presented a new set of four stamps depicting wetland birds that had just been jointly issued by the Swedish and Hong Kong post offices. This is the first joint stamp issue between Hongkong Post and Posten and the first joint stamp issue between the HKSAR and a European country.
In addition Mr Jackson took the opportunity to open an exhibition of black and white photographs of Hong Kong entitled "Hong Kong Vision". The photographs are a personal view of Hong Kong by renowned European photographer Jean-Dominique Burton. Mr Jackson encouraged guests to visit Hong Kong to experience its many attractions for themselves.
"Seeing is believing. So I urge you to come to Hong Kong to see for yourself, to assess the opportunities we believe are presenting themselves, and to feel the pulse, energy and dynamism of Asia's world city. I am sure you will not be disappointed," he concluded.
Mr Jackson also took the opportunity of his visit to Stockholm to brief the Swedish Government, leading enterprises and the media on the latest developments in Hong Kong.
End/Wednesday, October 8, 2003
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