China's WTO Accession Will Pay Dividends For Hong Kong Business, Says Chief Secretary

by Mary Swire, Tax-News.com, Hong Kong

21 November 2001

Hong Kong's Chief Secretary, Mr Donald Tsang, commented on Hong Long's future during his first official visit to the United Kingdom and Europe this week. Over the past 20 years, claimed Mr Tsang, Hong Kong's businesses had been laying the foundations for China's accession to the WTO and were now the largest investors in every Mainland province.

'Those investments are about to pay dividends, and I believe they will be much better than those enjoyed by newcomers to the China market,' said Mr Tsang. 'We are not going to be a major manufacturing power. We are not going to do well as far as labour-intensive industries go. But where we will do well is as an international financial centre and as a services provider for the Mainland and for those wishing to invest and do business there.'

He added: 'Hong Kong people have a lot of experience and acumen in dealing with the Mainland market, and they also have tremendous experience in the areas of international trade and finance. This is where our strength and advantage lies. Because of this Hong Kong will be in a unique position to benefit from China's WTO accession. And the opportunities that will flow from that will also help us to overcome the present difficult economic environment.'

Mr Tsang said Hong Kong had other strengths that underpinned its position such as the rule of law, a level playing field for business, the free flow of information and a clean administration.

During his UK visit, Mr Tsang met with the UK Deputy Prime Minister, Mr John Prescott, who praised Hong Kong's efforts in fighting international terrorism financing via its role as President of the FATF for Money Laundering, and agreed that Hong Kong was well positioned to take advantage of the opportunities to emerge from China's WTO accession.

Mr Tsang met Bank of England Governor, Sir Edward George, to discuss the jurisdiction's latest economic situation and Hong Kong's long-term competitiveness, and on Monday night he delivered a keynote speech at the Hong Kong Trade Development Council Annual Dinner. Yesterday (Tuesday) Mr Tsang spoke with the UK Secretary of State for Trade and Industry Patricia Hewitt, the Lord Chancellor Lord Irvine of Lairg, the Leader of the Opposition Iain Duncan Smith, leader of the Liberal Democratic Party Charles Kennedy and the Permanent Secretary of the Foreign and Commonwealth Office Sir John Kerr.

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