CE Presses Hong Kong Advantages in Europe

Hong Kong’s role as a vital link between European companies and the massive economic potential of Mainland China has evolved and  strengthened in the face of globalization. That was the key message from the Chief Executive, Mr. Donald Tsang, during his visits to Belgium and France in November. 

Mr. Tsang spoke at several high-level business functions, including the Hong Kong France Business Partnership Plenary, a gala dinner co-hosted by the HKETO in Brussels and the Belgium-Hong Kong Society, and the Hong Kong and Guangdong Business Conference in Paris. He also met with senior officials of the European Commission, the European Parliament, and the Belgian and French governments.

Mr. Tsang described for his European audiences Hong Kong’s new stage of 
development as the 10th anniversary of the reunification approaches. “Now, more than ever, Hong Kong remains an international, cosmopolitan, 
East-meets-West, 24-7 city,” he said. “On the other hand, we are an 
inextricable part of China.” 

New Initiatives Boost Connectivity

In the wake of the fast-paced globalization that has swept China, coupled with the Mainland’s entry into the World Trade Organization, Hong Kong has seen its traditional role as the gateway to China evolve into what Mr. Tsang describes as “more of a revolving door that ushers trade and investment into the Mainland from Hong Kong and abroad, while on the return spin takes trade and investment from the Mainland out to Hong Kong and abroad.” 

Hong Kong has been proactive in countering challenges to its gateway 
role. An important example is the Closer Economic Partnership  Arrangement (CEPA) with China. As Mr. Tsang pointed out to his European audiences, any Hong Kong company – whether Hong Kong- or foreign-owned – can benefit from the liberalization measures in this free trade pact.

Similarly, the Pan-Pearl River Delta initiative brings together the 9 
southern provinces of China with the Special Administrative Regions of 
Hong Kong and Macau. “Hong Kong provides capital, international know-
how and global connectivity,” said Mr. Tsang. “Our Pan-PRD partners 
provide land, abundant labour, local market know-how and enhanced 
market access.”

A Natural Choice for Overseas SMEs

Speaking at a Gala Dinner co-hosted by the Belgium-Hong Kong Society 
and HKETO Brussels, Mr. Tsang emphasized Hong Kong’s advantages for 
small- and medium-sized enterprises (SMEs). With 98% of all companies 
in Hong Kong designed as SMEs, the city is known as SME capital of the 
world. Outlining the know-how, contacts and experience available to them in Hong Kong, Mr. Tsang said that, “European SMEs don’t have to reinvent the wheel; Hong Kong enterprises have had the cogs turning in the Mainland for decades.”

The Chief Executive acknowledged that the Mainland market can be daunting for novices. “Come to us and you will be in safe hands,” he 
declared. “I invite you to make Hong Kong your trusted partner and 
business eyes and ears in China.”

Expanded Recipe for Success 

The success of ‘One Country, Two Systems’ has added another dimension 
to Hong Kong’s role as Asia’s world city – “our role as the most open, 
free and international city in China,” said Mr. Tsang. “One city, two roles.” 

Recent economic achievements have, he said, underscored the success of 
this approach. With a population of just 7 million, Hong Kong is the world’s 11th largest trading economy. It is home to the world’s busiest airport for international air cargo and one of the busiest and most efficient cargo ports anywhere. Hong Kong has also retained its position as Asia’s second largest destination for foreign direct investment.

Along with this expertise and can-do spirit, Hong Kong offers a starting point with excellent communications and transportation infrastructures, a low and simple tax system, a corruption-free government, a business-friendly environment and no exchange controls.

Hong Kong Integral to China Strategy

For companies developing a China strategy, Mr. Tsang encouraged them to consider Hong Kong as a proven, low-risk starting point. He urged French and Belgian business people thinking about a move to China to consider the combined strengths of Hong Kong and Guangdong: the latter providing industrial and manufacturing might, and the formeran unparalleled source of services needed for international finance and trade to flourish.

“We have the expertise not available in other parts of China,” he said. 
“We have the pool of knowledge to help you in your ventures.”

Speaking at the Hong Kong Guangdong Business Conference in Paris, Mr. 
Tsang quoted the president of the French Chamber of Commerce and 
Industry in Hong Kong, who said recently; “Working with Hong Kong gives 
you a decade of China experience overnight.” 

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