Press Release - March 9, 2005

Hong Kong�s latest economic development, which focuses on the integration with South China, has created tremendous opportunities for Canadian companies wanting to enter the lucrative Mainland China market, the Director of the Hong Kong Economic & Trade Office (Canada), Mr. Bassanio So, said today (Wednesday).

Speaking to a group of Canadian federal politicians and leading business people at a reception at the Parliament Hill, Mr. So highlighted Hong Kong�s high degree of autonomy under the �One country, two systems� principle, its steady progress in political development, along with China�s rapid economic growth. �The closer economic integration between the two places, and the new initiative on Pan-Pearl River Delta regional co-operation and development have brought a new era to the region�s economy,� he said.

Mr. So urged Canadian companies to take advantage of these favourable factors to tap into the China market, and in particular, use Hong Kong as the platform for doing business in the Pan-Pearl River Delta region, or anywhere in the Asia-Pacific region.

The reception was hosted by the Canada-Hong Kong Parliamentary Friendship Group in Ottawa. The Friendship Group, headed by Member of Parliament the Hon. Derek Lee, was formed to promote linkages between Canadian and Hong Kong legislators. Those who attended the gathering included Senator Vivienne Poy, Senator Joseph Day, Senator Terry Mercer, and members of the Parliament, the Hon. Bryon Wilfert, the Hon. Jean Augustine, and the Hon. David Anderson, etc.

Mr Lee also admitted that Hong Kong has always been a leading financial and business hub in Asia, and he encouraged Canadian business people to take advantage of Hong Kong�s unique position and its close relationship with China.

Hong Kong companies were the first in the world to move their manufacturing operations across the border to the Pearl River Delta (PRD), when China opened its economy 25 years ago. Today, the PRD is a manufacturing and export powerhouse, the fastest-growing region of China, and the fastest-growing economy in the world.

According to Mr So, Hong Kong companies are the largest investors in the PRD and it is estimated that over 50,000 Hong Kong-invested factories in Guangdong Province employ about 10 million workers � representing approximately one-third of the population of Canada.

Hong Kong has been working closely with the South China province of Guangdong to smooth the flow of people, goods, services and capital between the two places. Mr So added that the implementation of the Closer Economic Partnership Arrangement (CEPA) � a free trade agreement between Hong Kong and China � has offered Hong Kong�s manufacturing and service industries �first mover advantage� into the Mainland China market, ahead of and beyond China�s World Trade Organization commitments.

�But we haven�t stopped there,� Mr. So said. �A new concept was launched a year ago � the Pan-Pearl River Delta Regional Co-operation and Development Forum (Pan-PRD) or �9+2�. It�s an initiative that brings together the nine provinces of southern China and the two Special Administrative Regions of Hong Kong and Macau.�

Described by the Economist Magazine as �a string of pearls� within China, Mr. So explained that with �9+2�, Hong Kong�s economic catchment area would expand five-fold, from the PRD to cities like Fuzhou in Fujian Province, Changsha in Hunan and Chengdu in Sichuan. These cities would become increasingly important manufacturing and consumer centres as the PRD moves up the value chain.

�Undoubtedly, Hong Kong would soon become a high-end services, administrative, managerial and financial centre for the region,� he concluded.

Mr. So also revealed that a large-scale national business conference is being organized by the Hong Kong-Canada Business Association in Ottawa on May 30. The conference, supported by the federal and provincial government agencies and business organizations, will allow small and medium Canadian enterprises to learn more about making use of Hong Kong as their �smart link� to China.


For more information, please contact: Stephen Siu, Assistant Director (Public Relations) of the Hong Kong Economic and Trade Office, at: (416) 924-5544 or email: [email protected] or Elison Chu, Senior Information Officer, [email protected].

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