CEPA Gives Global Companies a Great Advantage

In the face of immense challenges posed by the slowing of global economic growth, SARS, the rise of competitive gateways into the China market and the migration of jobs in the manufacturing and service sectors to lower cost areas, Hong Kong has applied its trademark resilience and flexibility to seek new opportunities. 

Hong Kong’s Chief Executive, Mr Tung Chee Hwa, said this when he addressed the Business Week CEO Forum at the Hong Kong Convention and Exhibition Centre on November 5.

“The key challenge for us in Hong Kong has been to try and leverage on our biggest strength: our proximity to, and our familiarity with, one of the fastest growing economies in the world,” said Mr Tung. By building on Hong Kong’s many advantages – its world-class business services, legal system, logistics and financial services, to name but a few – the Government’s strategy aims to ensure that Hong Kong is the most sophisticated and efficient gateway into China. 

The signing of the Closer Economic Partnership Arrangement (CEPA), a free trade agreement between the Mainland and Hong Kong, will give Hong Kong companies an immense advantage in entering the Mainland market. Mr Tung emphasised that CEPA also “gives global companies that do business in Hong Kong a great advantage.”

Closer links with the Guangdong provincial government are helping to build a regional economy in the fast growing Pearl River Delta that includes Hong Kong. In addition, Mr Tung said: “The Mayor of Shanghai and I have identified 8 areas of co-operation between our two cities, including transport, airports and ports, logistics, investment, trade and financial services.” 

These measures have contributed to recent upward growth in Hong Kong. “We now forecast a 3% growth in GDP in real terms this year,” said Mr Tung. “We have double-digit real growth in exports and there has been a sharp upturn in growth in the services sector.”

Mr Tung also discussed his Government’s commitment to Hong Kong’s development as a society, with its focus on maintaining the rule of law, a level playing field for business, enhanced corporate governance and a clean and efficient administration. “We will continue to do more to improve our environment and to generally enhance the quality of life of our people,” he said.

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