Report on HKCSI's MOFTEC Training Seminar

23 March 1999, Beijing

Background

The HKCSI conducted 2 training seminars in Shenzhen and Nanjing with the State Development and Planning Commission (SDPC) respectively in 1997 and 1998.

With the fruitful results from the training seminars, the HKCSI's Chairman Mr Stanley Ko, in an informal meeting with the Ministry of Foreign Trade and Economic Cooperation (MOFTEC), suggested to organise a similar function in order to share with the trade officials the modern concepts of tertiary industries. The proposal was supported by Mr Liu Zuozhang, Deputy Director-General of MOFTEC's Foreign Investment Administration.

Organisation

The 1-day training seminar was held on 23 March 1999 in Beijing at MOFTEC, with emphasis on the operation of distribution centre, retail and franchise businesses. 3 speakers were invited including:

Mr David Wong, Assistant Director, Business and Services Promotion Unit of the Financial Secretary'sOffice

Mr Vincent Wong, Group Chief Executive, Jardine Transport Services

Mr Sam Yeung, Director of China Development, The Dairy Farm Group

Headed by Ms Wang Shijia, Director General of the Department of Foreign Investment Administration of MOFTEC, a small group of 16 officials was invited to attend the seminar. A dinner reception hosted by the HKCSI Chairman was organised on 22 March, at which Mr Tam Wing Pong, Deputy Director of the Office of the HKSAR Government in Beijnig was invited. The programme and the list of attendants are attached.

Observations

Officials acknowledged the importance of tertiary industries attached to the national economy. Although it was clear that the Chinese leadership was committed to carrying on its liberalisation process, there were difficulties in balancing different interests among ministries and departments. Being the leading negotiator for WTO accession, MOFTEC officials were particularly interested in how the HKSAR government coordinated its various departments to promote the services sector.

The concepts of distribution centre and franchising were new in China. Officials were enthusiastic in asking questions relating to:

rules and regulations imposed by other countries

successful examples and their practices in different countries

suitability of such practices in China and issues of concerned

criteria for choosing business partners

licence agreements and negotiation on ratio of profit sharing

MOFTEC officials were also keen to learn from Hong Kong'sexperience in regard to:

product and service exports

intermediary (business-to-business) services

Recommendations

We have been encouraged by the positive message that China is pressing ahead with measures to liberalise its services sector. In the process, there would be opportunities for Hong Kong service providers to strive for development and growth. The HKCSI and MOFTEC shall continue their partnership in fostering exchange and cooperation between the service sectors of Hong Kong and the mainland.

Thinex Shek, Manager

Hong Kong Coalition of Service industries

29 March 1999