From the Commissioner
Dear Friends,
In March, I made my first official visit to Miami where I spoke at a luncheon co-organized by the Greater Miami Chamber of Commerce.
Addressing local business and community leaders on March 17, I offered an update on the latest economic and trade situations in Hong Kong and the impact of the global financial crisis on the territory.
I also took the opportunity to reiterate that since the handover in 1997, Hong Kong remained a free and pluralistic society. Hong Kong people continue to enjoy press freedom, freedom of expression, freedom of assembly, and free and unfettered flow of information. Hong Kong people continue to run Hong Kong and have full autonomy in governing Hong Kong, except in the areas of foreign policy and national defense.
Amid today’s global financial crisis, I noted that Hong Kong’s economic fundamentals remained strong. The Hong Kong government has adopted a prudent fiscal policy and maintained a sizeable current account surplus and strong net external international investment position. Our banks, with a high capital adequacy ratio, remain healthy and sound as we have improved risk management of banks and created a more transparent regulatory system after the Asian financial turmoil in 1997-98.
I also explained the Closer Economic Partnership Arrangement (CEPA), a free trade pact between Hong Kong and the Mainland of China, to gathered business leaders. Under CEPA, all Hong Kong goods are entitled to tariff-free entry into the Mainland of China. CEPA also affords preferential market access into the Mainland for 40 Hong Kong service sectors, including financial services, trade, logistics, tourism, conventions and exhibitions, and legal services.
U.S. companies can also take full advantage of CEPA once they have incorporated in Hong Kong or partnered with Hong Kong companies.
I also spoke about developments in the tourism sector, including the construction of a cruise terminal at the old Kai Tak Airport and the construction of a 100-acre cultural hub in West Kowloon, which will provide 15 world-class performance arts venues, museum, exhibition center and galleries to enrich Hong Kong’s art and culture content and attract tourists.
Hong Kong is also promoting Hong Kong as a prime destination for meetings, incentives, conventions and exhibitions or MICE. In this connection, we have established a one-stop unit entitled MEHK (Meetings Exhibitions Hong Kong) and will soon complete major expansion work in one of our prime exhibition and convention facilities.
I emphasized that Hong Kong and the U.S. long enjoyed close ties. The U.S. is Hong Kong’s second most important trading partner, the 5th largest import source and 2nd largest export destination.
Last year, we imported US$21.6 billion from the U.S. and exported about US$6.5 billion worth of goods to the U.S. The U.S. also tops the list of countries with regional operations in Hong Kong – increasing to over 900 in a decade. This is a real vote of confidence in our role as Asia’s leading business hub and a reliable partner for U.S. businesses.
I noted that Florida’s exports to Hong Kong had also increased significantly in the past few years. Total exports to Hong Kong were approximately US$578 million last year, a 55% increase compared to 2004.
And I welcomed the recent commencement of direct air-cargo flights by Hong Kong carrier Cathay Pacific Airway to Miami this month. Despite the economic downturn, it is a reflection of the increasing trade ties between Hong Kong and Florida, particularly Miami.
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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