SCIT Addresses Harvard Project for Asian and International Relations

In a speech to participants of the Harvard Project for Asian and International Relations Revitalizing Hong Kong, the Secretary for Commerce, Industry and Technology of the Hong Kong Special Administrative Region, Mr John Tsang, outlined the many ways in which Hong Kong is strategically poised to benefit from the economic reform and market liberalization in the Mainland. 

Mr Tsang described the advantages of the Closer Economic Partnership Arrangement (CEPA), the bilateral free trade arrangement between the Mainland and Hong Kong. The agreement provides advantages in terms of product exports and services and promotes cooperation in areas of trade and investment promotion. 

“Some call CEPA a panacea for all our woes, while others warn that it is just a gimmick. It is neither,” said Mr Tsang. He emphasized that CEPA will not realize itself, rather it is up to the relevant sectors to make the most of the opportunities it presents.

“CEPA and the opportunities it brings will also serve as a great attraction for foreign companies wishing to tap the vast potential of the Mainland market,” he added. “Hong Kong is the ideal platform for companies on which to base their operations to take advantage of our efficient infrastructure and our world-class clustering of professionals, as well as our unparalleled wealth of experience in the Mainland market.”

Mr Tsang underscored Hong Kong’s strategic position by describing the powerhouse growth of its neighbour, the Pearl River Delta (PRD). Known as “the factory of the world”, the PRD has a regional economy bigger than that of Switzerland, with a per capita income higher than that of the Yangtze River Delta, which includes Shanghai. In 2002, the PRD attracted foreign direct investment inflow of US$25 billion, more than that of Japan, Korea, Singapore or Taiwan.

Hong Kong’s close ties with the PRD are being enhanced by the HKSAR Government in the form of sophisticated infrastructure projects and closer links between all levels of the Hong Kong and Guangdong governments. 

“As government, we will strengthen our co-operation and build on the complementary nature of our respective comparative advantages,” said Mr Tsang. “Consistent with our maxim of ‘maximum support, minimum intervention’, we will continue with our facilitating role in enhancing the existing support infrastructure while leaving the ultimate commercial decisions on how to exploit the opportunities to the private sector.

“We believe that this is our winning formula, and through such partnerships between government and business, and between Hong Kong and the PRD, we will set new standards that will take us to a new level of excellence, driving economic growth that will improve the quality of life of our people.”
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