REPORT ON HKCSI DELEGATION TO BEIJING

22 & 23 April 1999

BACKGROUND

Stanley Ko (right) presented souvenir to Jiang Junlu

The HKCSI has been maintaining a close relationship with the State Development and Planning Commission (SDPC) since 1996. The 2 parties jointly organised training seminars in 1997 and 1998, respectively in Shenzhen and Nanjing, to promote modern concepts of tertiary industries to Chinese officials, and visited each other to maintain working relationship in the past few years.

The HKCSI organised its third visit to Beijing on 22 and 23 April 1999. The purposes were to exchange views on the development of tertiary industries in China with policy making bodies and some operating level Ministries, to explore greater liberalisation of the services sector following Premier Zhu Rongji's visit to US, and to follow up with the State Development and Planning Commission to work on cooperation projects.

ORGANISATION

K C Kwok & Tam Wing Pong

Led by HKCSI Chairman Mr Stanley Ko (高鑑泉) and Vice Chairman Mr K C Kwok (郭國全), the 11-member delegation included a senior representative from the HKSAR Government and members representing various services sectors (Appendix I). Arranged by the Office of Tertiary Industries of the SDPC, the delegation had 4 meetings during its 2-day programme and a study visit to a local enterprise. A dinner reception hosted by the HKCSI Chairman was organised on 22 April, at which Mr Tam Wing Pong (譚榮邦), Deputy Director of the Office of the HKSAR Government in Beijing was invited. Group itinerary is attached in Appendix II.

OBSERVATIONS

• The delegation was warmly received by the State Development and Planning Commission. Delegates were given the opportunities to meet with appropriate officials responsible for the development of tertiary sectors in China, including:

• Mr Mr Jiang Junlu (發展規劃司姜均露司長), Director-General of the Department of Development Planning of SDPC;
• Mr Huang Hai (黃海總經濟師), Chief Economist of the Internal Trade Bureau;
• Mr Zhu Mingchun (綜合司朱明春副司長) , Deputy Director-General of the Department of General Economic Affairs of the State Economic and Trade Commission; and
• Mr Chen Jiwei (外國投資管理司陳季瑋副處長), Deputy Division Chief of the Foreign Invesetment Administration of the Ministry of Foreign Trade and Economic Cooperation.

Meeting notes (Chinese) are attached in Appendix III.

• This mission was considered important as it was held shortly after Premier Zhu Rongji's visit to the US. Substantial progress was made in regard to China's entry to WTO, in particular to the opening of services sector. As liberalisation is an irreversible trend to meet with nation's requirements, China will gradually open her market to foreign investors, whether she will be admitted to the WTO this year or not.

• Since the Party Congress confirmed the opening of tertiary sectors, Chinese officials began to acknowledge the importance of service industries attached to the national economy. We note that tertiary industries are being promoted to provide employment for those workers who lose their jobs as a result of the economic restructuring. We have also been encouraged by the positive message that China is pressing ahead to liberalise its services sector.

• Apart from the issue of WTO entry, a wide range of topics were also discussed during the mission, including the measures to stimulate private consumption and the housing reform. There would be tremendous opportunities for service providers to develop and grow.

• The State Development and Planning Commission provides its website address to the delegation. Members are recommended to visit their webpage at http://dp.cei.gov.cn/lszl/scgh.htm to get more information regarding the latest policy development in China.

• The opening of tertiary sectors and the promotion of consumption will provide many opportunities for foreign investors. Being one of the leading servicing economies in the world, Hong Kong will have much to gain. It is pleasing to know that officials are treating Hong Kong investors as “family”, so that “Hong Kong Factor” would be considered when policies are drafted such as on the opening of trading rights and trade-supporting services.

• As the opening process will result in a huge demand for intermediary professional services, Chinese government is keen on maintaining close relationship with foreign associations. The HKCSI shall continue its partnership with the State Development and Planning Commission (2 projects are under discussion), strengthen the relationship with the Ministry of Foreign Trade and Economic Cooperation and establish close links with the State Economic and Trade Commission and other government departments.

Thinex Shek, Mission Secretary

4 May 1999