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Hong Kong was a good place to do business in its own right and as a gateway to China, Secretary for Commerce, Industry and Technology Mr Joseph W P Wong said in Budapest, Hungary.
Addressing a business seminar on Monday (November 6, local time) in Budapest, his first stop of a five-day visit to three major European cities, Mr Wong said Hong Kong was an ideal place for European companies aiming to expand into Asia.
Hong Kong was a business friendly city with a unique position as a two-way platform for international companies accessing the markets of China and Chinese firms looking to develop their businesses in the rest of Asia, the EU and globally, he said.
Updating the Budapest business community on Hong Kong's latest economic situation and outlook, Mr Wong said Hong Kong had successfully preserved and strengthened its competitive advantages from a "barren rock" to a British colony and to a Special Administrative Region of China when Hong Kong was reunified with its Motherland in 1997.
"The unique 'One country, Two systems' is working well. All these factors that have made Hong Kong an attractive place for foreign investors down the years ﷿ rule of law; clean governance; a simple, low tax regime; unfettered flow of information and capital; level playing field; lack of government interference - remain intact," he said.
Mr Wong also mentioned several specific distinctive competitive advantages including the "clustering" of professional services, infrastructure, and an excellent environment for the use of information and communications technology.
Turning to the Mainland advantage, Mr Wong said Hong Kong's geographic position had made it a natural hub for one of the world's most economically robust areas ﷿ the Pan Pearl River Delta region of China. Making up one-fifth of China's land mass, the region had a combined population of 450 million and GDP of US$635 billion which is more than 40% of China's total output.
"And for the whole of Mainland China, international companies in Hong Kong are also benefiting from the Closer Economic Partnership Arrangement (CEPA), essentially a free trade pact between two autonomous trading partners within the same nation, which came into effect on January 1, 2004.
"CEPA is WTO compliant but many benefits go beyond China's WTO commitments which China has not offered to other economies at this stage. Importantly, these benefits are available to people and businesses of all nationalities operating in Hong Kong," he said.
Mr Wong assured Hungary enterprises that Hong Kong would help them grasp business opportunities both in Hong Kong and in Mainland China.
During his stay in Budapest, Mr Wong also met senior government officials including the Ambassador-at-large and ex-Prime Minister HE Peter Medgyessy, and leaders of key business organisations and chamber of commerce.
Ends/Tuesday, November 7, 2006
Issued at HKT 19:20
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