Hong Kong And Shanghai Woo Japanese Investment

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

09 March 2005

The first Hong Kong-Shanghai joint investment promotion seminar, held yesterday in the Tokyo, has been hailed a success by the investment promotion bodies of both cities.

The seminar, entitled ‘Hong Kong and Shanghai: The Two Engines for China's Economic Development,’ was held to promote the business opportunities and market potential for Japanese companies in China, particularly in the Greater Pearl River Delta (PRD) and the Yangtze River Delta (YRD).

More than 380 senior business executives from leading Japanese companies, such as Hitachi and Bandai Logipal, attended and are reported to have expressed strong interest in establishing or expanding their businesses in Hong Kong and Shanghai, the main commercial hubs of the two regions.

In his keynote speech, Mike Rowse, Director-General of Investment Promotion at Invest Hong Kong, highlighted the advantages of Hong Kong as a strategic base to access the PRD region, particularly for businesses in the management, information, co-ordination, finance and professional services sectors.

"That is why so many foreign investors, including many large and small and medium-sized companies from Japan, have found it very attractive to perform these service activities in Hong Kong while placing their manufacturing facilities and some sales operations in the Pearl River Delta," he observed.

Mr Rowse was also keen to highlight the potential opportunities arising from the China and Hong Kong Closer Economic Partnership Arrangement (CEPA) which has eliminated tariffs and customs on many goods and services traded between the SAR and the mainland.

"We understand that many Japanese companies with a presence in Hong Kong are enjoying the 'first mover’ and 'WTO-plus' advantages in a wide range of trade and services sectors under CEPA. We encourage more Japanese companies to consider investing or expanding their operations in Hong Kong, and to use our city as the gateway to southern China,” he stated.

Meanwhile, Chairman of the Shanghai Municipal Government Foreign Economic Relations and Trade Commission, Pan Longqing commented that the city has designs on becoming one of the leading international centres in the finance, trade and transportation sectors by 2020.

"Shanghai's economic development in the next 15 years will create tremendous opportunities for entrepreneurs and investors from all around the world,” explained Pan.

“We understand the importance of providing a good business environment for foreign investors. We are committed to create an environment with an efficient customs system, protection of intellectual property, rule of law and business-friendly policies," he added.

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