Speaking at the 19th Plenary Session of the Hong Kong – U.S. Business Council, US corporate leaders today (24 September) expressed strong support for Hong Kong’s role in the continued economic development of the Chinese mainland.

They said the strength and sophistication of Hong Kong’s service sector was pivotal in helping mainland enterprises modernise and expand.

“Hong Kong’s sophisticated services platform is unique in facilitating the Chinese mainland to develop the skills they need to compete and expand in world markets,” said Mr. William R. Rhodes, Chairman of the U.S. section of the Hong Kong – U.S. Business Council and senior vice chairman of Citigroup, Inc.

U.S. members welcomed the end of the long period of deflation in Hong Kong and acknowledged efforts to combat the related budget deficit.

“Hong Kong’s strong financial management throughout the last five difficult years in Asia has consistently ensured a strong banking sector and a stable currency, both essential factors for U.S. companies looking to make trade and investment decisions,” said Mr Rhodes.

Trade Development Council Chairman Mr. Peter Woo, who chaired the Hong Kong section, updated U.S. members on developments in Hong Kong, including the strengthening economy, increased economic integration with the mainland, the development of the Pan-Pearl River Delta region and the expansion of the Cepa free trade agreement.

“Hong Kong has reached a new level of economic maturity with the Chinese mainland,” said Mr Woo.

“Initiatives such as Cepa I and II and the Pan-Pearl River Delta economic alliance have further strengthened our diverse role in China’s success, as well as making Hong Kong a stronger-than-ever platform for U.S. companies interested in the growing mainland markets,” Mr Woo added. “They also expand even further the range of opportunities for partnerships between US and Hong Kong companies with a view to maximising their chances of success in the Chinese mainland, especially in sectors such as logistics and technology.”

Other subjects on the agenda included the addition of Renminbi services to Hong Kong’s international financial service platform, its role as an intellectual property protection risk-manager, easier and more effective access to mainland markets, regional logistics and transportation networks and the role of international sourcing.

The Chief Executive, Tung Chee Hwa, hosted a luncheon for Business Council members.