Business in HK to remain as usual after handover<\/p>\n
JAKARTA (JP): Hong Kong's secretary for trade and industry,
\nDenise C.Y. Yue, assured Indonesia's business community yesterday
\nthat Hong Kong's economic regime would be unchanged after the
\ncolony was transferred to China.<\/p>\n
Yue said businesspeople and investors should not feel
\nreluctant to continue operating there after China takes over on
\nJuly 1.<\/p>\n
"It is business as usual in the area of trade and
\ninvestment ... 1997 should not be considered a factor when making
\nbusiness decisions," she said after speaking at a seminar on
\nimplications for business in Hong Kong under Chinese rule.<\/p>\n
She said that under the "one country-two systems" concept,
\nHong Kong would continue as a capitalist economy and an
\ninternational business center.<\/p>\n
"Hong Kong will continue operating under the rule of law, with
\nits cosmopolitan life unchanged for 50 years beyond 1997," she
\nsaid.<\/p>\n
Yue said the 50-year period would effect business decisions.<\/p>\n
"Business people usually think in the framework of between two
\nand 20 years," she said. Those wanting to invest in major
\nindustrial projects consider a 15 to 20 year span, while those
\nengaged in manufacturing and trading have a time horizon of only
\n12 to 36 months, she said.<\/p>\n
She said investments had continued to enter Hong Kong in the
\npast couple of years and was likely to continue after July 1.<\/p>\n
"As far as outward investment from Hong Kong is concerned,
\nthat has been continuing and we predict it will continue to
\nhappen," she said.<\/p>\n
According to the latest report published by the United Nations
\nConference on Trade and Development (UNCTAD) Hong Kong was the
\nworld's fourth largest provider of foreign investment after the
\nUnited States, Britain and France.<\/p>\n
"The reason for this is that about 50 million overseas Chinese
\nare using Hong Kong as the conduit for their investment in other
\nplaces," she said.<\/p>\n
Yue said that despite the optimism, Hong Kong people realized
\nthere were many problems to resolve with mainland China.<\/p>\n
"But the people of Hong Kong are very used to dealing with
\nadversities ... They have been known to turn adversities into
\nopportunities," she said.<\/p>\n
"We are optimistic with good reasons but we do not
\nunderestimate the difficulties that we still have to resolve with
\nmainland China. But we have been dealing with mainland China for
\nthe last 13 years of transition, so we have also developed a much
\nbetter knowledge of the systems in mainland China and of managing
\nour relationship with them," she said.<\/p>\n
Yue said Hong Kong's government reserves and taxes would
\nremain in Hong Kong and be used in and by the colony.<\/p>\n
Thus there was no question of Hong Kong taxes and government
\nreserves being used in mainland China.<\/p>\n
After July 1, Hong Kong would continue to maintain a level
\nplaying field for all business entities there, she said.<\/p>\n
"We are, in Hong Kong, nationality blind. All companies that
\nare registered in Hong Kong under the laws of Hong Kong are
\ntreated in exactly the same way," Yue said.<\/p>\n
The chairman of the Indonesian Chamber of Commerce and
\nIndustry, Aburizal Bakrie, said yesterday the main concern of
\nIndonesia's business community was not on the integration of
\nChina and Hong Kong, but whether or not it would be followed by
\nchange.<\/p>\n
"We might worry if the integration means investments from Hong
\nKong would decline, or if trade relations would be disrupted or
\nif doing business in Hong Kong would become difficult," he said.<\/p>\n
Bachrum Harahap, an assistant to the Coordinating Minister for
\nProduction and Distribution, said that in the last 30 years Hong
\nKong companies invested in 360 projects worth US$18.6 billion in
\nIndonesia.<\/p>\n
Hong Kong is the third largest foreign investor in Indonesia
\nafter Japan and the United Kingdom. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/business-in-hk-to-remain-as-usual-after-handover-1447893297",
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"sponsor": "Okusi Associates",
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