Strengthening the partnership between Japanese and Hong Kong small and medium-sized enterprises (SMEs) to explore opportunities in the Chinese mainland was high on the agenda at the joint plenary meeting of the Japan / Hong Kong and Hong Kong / Japan Business Cooperation Committees in Tokyo today (Tuesday 12 December).
Collaboration with Hong Kong companies will be particularly valuable for newcomers to the mainland, agreed members who comprise chairmen and chief executives of companies in Japan and Hong Kong.
The meeting was co-chaired by Mr. Tomiichi Akiyama, Adviser of the Japan / Hong Kong Business Cooperation Committee, and Dr. Raymond Ch'ien, Chairman of the Hong Kong / Japan Business Cooperation Committee.
The further market opening on the mainland's impending accession to the World Trade Organisation (WTO) would be a powerful stimulus to economic activity throughout the region, and would create a wealth of new business opportunities, the meeting noted. Members identified information technology and e-commerce, financial services, distribution and logistics as specific sectors where Japanese and Hong Kong companies could work together to explore business opportunities in the Chinese mainland to mutual benefit. Members also considered there was good potential for Japanese companies and their Hong Kong partners to manufacture consumer goods in the Pearl River Delta to supply the huge mainland market.
Japanese expertise in the development of natural resources, infrastructure and telecommunications, together with Hong Kong's "first mover" advantage in the Chinese mainland, could constitute a competitive and strategic alliance in China's interior western provinces, the meeting agreed.
Members of both committees welcomed the encouraging economic backdrop for the meeting, and the fact that bilateral trade between Japan and Hong Kong has grown by over 23 per cent in the first three quarters of 2000 compared with the same period last year.
The Japanese side explained the changing business environment in Japan and the opportunities such changes may offer for strengthening partnership with Hong Kong. In particular they focused on management reforms and the changing behavior of Japanese companies; opportunities arising from the IT revolution in Japan; and the impact of changing demographics and evolving distribution systems.
The meeting noted the sizeable Japanese commercial presence and interests in Hong Kong. With an influx of investment into the region anticipated following China's WTO entry, the Committees noted Hong Kong's advantages as a regional base for multinationals, and welcomed the prospect of further Japanese companies establishing a presence in Hong Kong.
Hong Kong's position as a distribution and logistics hub, and as a hub for global information, IT and e-commerce and its role as an integrator in China trade were identified as important factors for Hong Kong's competitiveness in the 21st century. The meeting also focused on measures being taken to protect the environment in order to ensure Hong Kong can continue to attract world class companies and talent.
Hong Kong members emphasised that bilateral economic links would be greatly enhanced and business travel facilitated if the Japanese Government would extend visa-free entry into Japan for Hong Kong SAR passport holders. They noted that Hong Kong travellers are generally law-abiding and financially sound, and in view of Hong Kong's excellent track record in this respect 73 countries / territories have granted visa-free access to HKSAR passport holders. They welcomed the European Union's recent agreement in principle to grant visa-free access to HKSAR passport holders.
At the start of the plenary session the Committees received messages of support from HE Yohei Kono, Foreign Minister of Japan, and the Hon. Tung Chee Hwa, Chief Executive of Hong Kong SAR.
The next plenary meeting of the Committees will be held in Hong Kong in 2001. The secretariat of the Japan/Hong Kong Business Cooperation Committee is the Keidanren. The Hong Kong Trade Development Council (TDC) serves as secretariat for the Hong Kong side.
Developing strategic alliances between Hong Kong and Japan were also highlighted at the major business conference Hong Kong / Japan - Partnership in a New Era of Opportunity in Tokyo yesterday ( Monday 11 December) at which TDC Chairman Peter Woo delivered the keynote address. The event was attended by around 500 delegates, predominantly from Japanese SMEs.
Japan is Hong Kong's third largest trading partner. Total two-way trade amounted to US$ 26.6 billion during the first three quarters of this year, an increase of over 23 per cent on the same period in 1999. Japan is a leading investor in Hong Kong's manufacturing sector, and Japanese companies are prominent in sectors such as banking, trading and financial services.
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