Hong Kong’s Secretary for Commerce and Economic Development visits
San Francisco

The Secretary for Commerce and Economic Development of the Hong Kong Special Administrative Region (HKSAR), Mr Frederick Ma addressed an audience of 300 businessmen, professionals, government officials and media representatives at a business conference held on November 5th.

The conference, entitled “Bustling Hong Kong – the Premier Commercial and Financial Hub in Asia” was organized by the Hong Kong Economic and Trade Office in San Francisco. Mr Ma was the keynote speaker and was joined by a panel of prominent executives from the United States and Hong Kong.

Commenting on the macro trade scene between Hong Kong and the United States, Mr Ma said, “Hong Kong is an open, efficient economy and the United States is our second largest trading partner, just after Mainland China. Our bilateral trade in 2006 was worth over US$ 63 billion. There are about 1,300 US firms in Hong Kong and many of which are from California.

Hong Kong is also the second largest destination for foreign direct investment (FDI) in Asia. In 2006, Hong Kong attracted FDI valued at US$42.9 billion, up 28% from the year before.

With sound economic fundamentals, free market principles and unparalleled advantages as the pre-eminent two-way springboard for overseas companies wanting to access the vast China market, as well as for Chinese enterprises looking for expansion into the global arena, Hong Kong is well positioned to serve as the global commerce and financial center in the Asian time zone, according to Mr Ma.

Mr Ma said the successful implementation of "One Country, Two Systems" has made possible the "Closer Economic Partnership Arrangement" (CEPA) - a free trade agreement signed between Mainland and Hong Kong. The CEPA provides Hong Kong companies, including foreign owned and controlled companies incorporated in Hong Kong, with preferential access to the Mainland market in both goods and services industry. With the on-going expansion of CEPA, the service areas eligible for preferential access will be increased from 27 to 38 by January 1, 2008.

Mr Ma also drew the audience’s attention to the Pan-Pearl River Delta cooperation, which he described as an exciting initiative among nine provinces of southern China, including Guangdong, plus Hong Kong and Macau. The Pan-Pearl River Delta has a population of some 470 million, and is roughly the size of the states of California, Oregon, Washington, Idaho, Nevada, Arizona and Utah combined. The region’s combined GDP in 2006 was just over US$1 trillion, accounting for 36% of China’s total output.

“We believe that the region will grow into one of the world’s largest and most efficient economies, and contribute to the overall development of China,” he continued.

In addition to addressing the business conference, Mr Ma also visited Pixar Animation Studios, an award-winning computer animation studio, where he met with President of Walt Disney and Pixar Animation Studios, Dr. Ed Catmull to exchange views on the development of the computer-animation industry.

The HKSAR Government has been very supportive of the development of creative industries. Like California, Hong Kong has excelled in various creative industries such as film, television, music, advertising and design.

In this first official visit to San Francisco since taking up the post of Secretary for Commerce and Economic Development in July, Mr Ma also called on the Chinese Consul General in San Francisco and other business leaders in his one-day visit.