From the Commissioner
Dear friends,
The month of April was quite active as I travelled from the southwest to the northeast and points in between. Given my travel log, I will attempt to consolidate my visits as best as possible.
Beginning in Santa Fe, New Mexico, I called on Governor Bill Richardson.
Having visited Hong Kong, Governor Richardson shared with me his high regard for Hong Kong people's hospitality and the city's vitality.
I took the opportunity to update the Governor on the city's status as a business and financial center, highlighting its simple and low tax regime.
In an effort to further entice overseas talents and businesses, the Financial Secretary announced the lowering of the maximum salaries tax rate to 15 percent and profits tax to 16.5 percent.
The Governor and I discussed Hong Kong's attractiveness as an international convention and exhibition capital. This year, Hong Kong won the Best MICE (meeting, incentive, convention and exhibition) City Award in the 2008 Industry Awards organized by CEI Asia Pacific Magazine.
I also shared with the Governor Hong Kong's efforts to pursue wider use of renewable energy. As a metropolitan city with a population of almost seven million and no indigenous energy resources, Hong Kong has relied on imported fuels to meet its energy requirements.
The government has dedicated considerable efforts to promote energy efficiency and renewable energy to manage energy demand and improve the environment.
While in New Mexico, I met with Fred Mondragon, Cabinet Secretary of the Economic Development Department.
Secretary Mondragon expressed interest in Hong Kong's record of protecting intellectual property rights (IPR). I informed him that Hong Kong maintained a stringent regime that adhered to the highest international standards and protected IPR by various means, including legislation, law enforcement and public education.
During a trip to Santa Fe, a rich and faithfully preserved cultural landscape, I had the opportunity to meet with Stuart Ashman, Secretary of the Department of Cultural Affairs.
We discussed efforts to develop our cities into international cultural centers, with special emphasis on heritage conservation.
Secretary Ashman expressed interest in introducing Santa Fe's unique and proud Native-American heritage to Hong Kong people. Hong Kong welcomes the cross-fertilization of ideas and sharing of cultural experiences, which are conducive to the development of a diverse and vibrant arts and cultural scene.
Travelling to historic Boston, I called on Massachusetts Lieutenant Governor Timothy Murray and Secretary of Housing and Economic Development, Dan O'Connell.
I updated them on Hong Kong's robust economic performance and outlined the advantages for the Bay State's businesses in utilizing Hong Kong to tap the regional and Greater China markets.
I shared with them Hong Kong's many growth industries, such as life science and Chinese medicine, financial services, healthcare, venture capital and alternative energy.
Both the Lieutenant Governor and Secretary O'Connell noted that these were also emergent niche sectors within the state and expressed interest in exploring mutual business opportunities.
Secretary O'Connell was upbeat on Hong Kong as a gateway to Greater China and the region, as well as a facilitator for businesses, especially small and medium-size enterprises (SMEs) exploring emerging markets.
Small and medium-size enterprises constitute over 98 percent of Hong Kong's business establishments and employ about 50 percent of its workforce in the private sector. They are crucial to the development of the city's economy. As such, the Hong Kong government and a number of industry bodies and trade organizations provide a wide range of services to enhance their competitiveness.
While visiting Connecticut, I met with R. Nelson Griebel, President and CEO of the MetroHartford Alliance, a union of the MetroHartford Chamber of Commerce and MetroHartford Economic Growth Council which spearheads economic development.
I discussed with Mr. Griebel the investment benefits Hong Kong offered Alliance members, specifically those brought by Hong Kong's free trade agreement with the Mainland of China, the Closer Economic Partnership Arrangement (CEPA), which opens up huge markets for Hong Kong goods and services.
The CEPA serves as springboard for foreign investors to establish businesses in Hong Kong and leverage the city's core strengths to tap the vast potential of the Mainland market.
In New Haven, I spoke to students at Yale University on the successful implementation of the "One Country, Two Systems" principle which grants Hong Kong its high-degree of autonomy, as well as Hong Kong's rule of law tradition and civil and political rights.
There are numerous exchange programs between Yale University and Hong Kong, including the Yale-New Asia College Student Exchange which has become an enduring avenue of cultural and academic interchange.
In New Jersey, I met with Gary Rose, Chief of the Office of Economic Growth. Mr. Rose explained that a 10-year capital plan had been set out for the New York/New Jersey Ports to enhance handling capacity.
I shared with Mr. Rose Hong Kong's experience as one of the world's busiest container terminals and our own plans to enhance the competitiveness of port assets.
I also spoke to students at Princeton University, which enjoys close ties with Hong Kong universities.
Through an agreement between Princeton University and The Chinese University of Hong Kong (CUHK), Princeton students may study at CUHK as associate undergraduates. In addition, this year Princeton University will launch, in conjunction with the University of Hong Kong, a "Live and Learn" exchange program.
To augment Hong Kong's appeal as a higher education and research destination, the government announced that it would create an additional 800 research postgraduate places and set up a US$2.3 billion Research Endowment Fund.
The Fund aims to nurture an academic research culture, develop a knowledge-based economy and strengthen the city's international competitiveness.
During a visit to America's fabled Heartland, I hosted a dinner for Wichita Mayor Carl Brewer and members of the Kansas World Trade Center and shared with them the trade and investment opportunities for the State of Kansas and Hong Kong.
Travelling to the state capital, I met with Ron Thornburgh, Secretary of State of Kansas, during which we discussed promotion of Kansas agricultural produce in Hong Kong.
Secretary Thornburgh remarked that Sprint, a Kansas-based company, was doing well in Hong Kong's telecommunications market.
I noted that Hong Kong had one of the most sophisticated telecommunications markets in the world, an important factor in the city's development as a leading business and financial center.
Hong Kong's mobile subscriber penetration rate is 152 percent, with 100 percent broadband coverage for all commercial and residential buildings. In addition, all sectors of Hong Kong's telecommunications market have been liberalized with no foreign ownership restrictions.
I also met with David Kerr, Secretary for Commerce. Secretary Kerr said that apart from the state's traditional strengths of agriculture and aircraft manufacturing, Kansas was cultivating emerging industries, such as animal health and applied science.
I encouraged collaboration with Hong Kong, which had made substantial investment in science and research with the establishment of the Hong Kong Science and Technology Parks Corporation (HKSTP) and the Hong Kong Applied Science and Technology Research Institute Company Limited (ASTRI).
The HKSTP plays a leading role in developing Hong Kong into an international center of innovation and technology by providing laboratories and production facilities to enable scientists and entrepreneurs to reach the market in a cost-effective and timely way.
In 2001, the Hong Kong government founded ASTRI to capture the potential of technological advances through applied research and deliver real-world applications to customers.
With Hong Kong co-hosting the Equestrian Events of the 2008 Olympic Games and Paralympic Games, it seemed fitting to visit Kentucky, home of America's famed equine tradition, where I called on Governor Steve Beshear.
While visiting Lexington, my colleagues and I attended the prestigious Rolex Kentucky Three-Day Event, which was co-sponsored by the Hong Kong Economic and Trade Office in New York.
The annual event – which features dressage, cross-country, and jumping – offers an opportunity for horse and rider combinations to compete at a championship level ahead of international competitions.
Hong Kong also has a cherished history of equine excellence that is nurtured and promoted by the Hong Kong Jockey Club, the Hong Kong Equestrian Federation and the Riding for the Disabled Association Limited.
Given Hong Kong's world-class quarantine and vaccination programs, and the Hong Kong Jockey Club's extensive experience with the import of thoroughbred racehorses, Hong Kong is well-prepared to accommodate seasoned riders and championship horses at the Olympic Equestrian Events and Paralympic Equestrian Events.
The opportunity allows Hong Kong to join the league of Olympic cities to promote the Olympic Spirit at home and to visitors from around the world.
HONG KONG ECONOMIC AND TRADE OFFICE IN WASHINGTON D.C.
1520 18th Street, N.W., Washington, DC 20036
Tel: (202)331-8947 Fax: (202)331-8958
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Copyright @ 2003, Hong Kong Economic and Trade Office in Washington D.C.
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