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Hong Kong's role as the dynamo of the Pearl River Delta manufacturing powerhouse has been brought to the fore to the British Midlands.

The Director-General of the Hong Kong Economic and Trade Office, London, Mr Andrew Leung, today (October 11, London time) delivered a keynote speech at a seminar in Birmingham on the business environment and investment opportunities in Hong Kong.

The event was organised by the Birmingham Chamber of Commerce and Industry. Speakers included the Regional Director, Western Europe, Hong Kong Trade Development Council, Mr Raymond Yip; and the Chairman of Midlands World Trade Forum, Mr Peter Matthews.

Addressing around 50 top UK business leaders in the region, Mr Leung opened his speech by mapping out the vast market potential of Mainland China.

"The size of the China market will amount to one third of Japan's projected GDP in 2005, and exceed that of Germany by 2010.

"Much of the growth is driven by China becoming the 'Factory of the World'," he said.

Mr Leung noted that China has already overtaken France as the world's fourth manufacturing exporter, accounting for 5 per cent of the world's manufacturing output, with a 17.5 per cent growth even against global economic downturn in the first eight months of the year.

He pointed out that China was producing 29 per cent of the world's coloured television sets, 32 per cent of air conditioners, 50 per cent of photocopiers and 21 per cent of personal computers.

"The quality and sophistication are continuously improving as machinery and transport now account for 35 per cent of total exports," he added.

Mr Leung said the most affluent and fastest growing manufacturing hub in China was located in Guangdong Province's Pearl River Delta - a huge megalopolis with a population of 48 million and a GDP of US$88 billion, similar to the size of Malaysia.

Exports through foreign invested enterprises in Guangdong accounts for 41.5 per cent of the whole of China.

"Much of the investment and drive in the Pearl River Delta comes from Hong Kong," Mr Leung said.

Hong Kong accounts for 70 per cent of Foreign Direct Investment (FDI) in the Pearl River Delta. Over 5 million people are employed by more than 40,000 companies wholly or partly owned by Hong Kong concerns.

"Not to mention that some 80 per cent of South China's cargoes are exported through Hong Kong and around 630,000 Hong Kong residents visit the Mainland, mostly for business, at least once a month," he added.

Mr Leung said a recent survey indicated that China was the world's most favoured FDI destination.

"The synergy of Hong Kong and the Mainland's manufacturing powerhouse has made the city well poised as a strategic partner for international enterprises to establish a foothold in that vast market," he said.

At a luncheon hosted by The Development Group in London on October 10, 2002, Mr Leung also spoke on "Mystical Nexis: Hong Kong, Shanghai, Taiwan and Singapore", the synergy and competition among other places in the region.

Mr Leung said both Singapore and Taiwan were embracing the momentous growth of the Mainland China market to hone their own competitiveness in world markets.

"Large markets like the United States, the European Union and China provide many opportunities for regional players," he added.

He noted that Hong Kong's unique blend of rule of law, transparency, freedoms, financial sophistication and business efficiency as well as its pool of expertise in finance, international commerce, law, accounting, insurance, marketing, freight and logistics, represented a golden key to unlock the full potential of the China market.

The Development Group, known as 'The D Group', is a London-based business-networking group with an established national presence and contacts throughout Government and business. It is devoted to stimulating new, profitable business opportunities and has a strong international slant and network.

The D Group runs exclusive briefings over breakfast, lunch or dinner with guest speakers including heads of state, cabinet ministers, business leaders, sportsmen and media personalities.

End/ Friday, October 11, 2002

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