To China: HK opens gateway for RP businessmen

The Government of the Hong Kong Special Administrative Region (HK-SAR) is now convincing Filipino businessmen to position themselves and take advantage of the fast growing economy in China, using Hong Kong as its gateway.

The Hong Kong Economic & Trade Office team lead by its director K K Lam was here in Cebu to meet with the business community to present the friendly trade and economic policies developed by the HK-SAR, overriding China 's high-speed economic growth.

Lam said the active promotion of HK-SAR to its neighboring countries like the Philippines bring about two-way benefits, inviting investors to put up businesses in Hong Kong or China , while Chinese can also put up their investments in the Philippines .

"It is no denying that China is a very important economic engine in the world. Before long, its economy and money will overflow and the neighboring countries like the Philippines will benefit from it," Lam told Cebu business community led by the Cebu Chamber of Commerce and Industry (CCCI) and Mandaue Chamber of Commerce and Industry (MCCI) members.

Lam highlighted the Closer Economic Partnership Agreement (CEPA) program which promotes free trade agreement between China and Hong Kong .

In this arrangement, companies registered in Hong Kong can enjoy of the free-trade movement products and services from China to Hong Kong , and vice versa. It means a 30 percent tariff savings for Hong Kong based companies.

Lam, specifically highlighted the creation of Pan-PRD (Pan-Peru River Delta) region, in southern part of China , which now provides a little common marketplace in China .

Because of China's communist government, trading of goods and services from province to province still needs government's approval/clearance, permits. With the implementation of PAN-PRA plus Hong Kong and Macau, the nine provinces in Southern China, can enjoy a free movement of goods including Hong Kong and Macau .

The PAN-PRA is composed of China's nine provinces in the Southern part, Sichuan, Yunnan, Hunan, Guizhou, Guangx, Hainan, Guangdong, Jiangxi, Fujian. The union also includes the Hong Kong and Macau .

Lam said he is confident that more Filipino investors will take advantage of this strategy incorporating these nine provinces with Hong Kong and Macau as one market, as more Filipino-Chinese businessmen whose families originated from Fujian province.

By positioning in China this early, the Philippines or Filipino investors will be able to get bigger chunk on the outflow of money from China .

Lam mentioned that retail taipan Henry Sy, and other wealthy Filipino Chinese had already established their based in China , through the recent opening of SM Mall there.

The PAN-PRA alone has 450 million populations as big as the total population in the European Union (EU).

The entire China has a little over 1.2 billion people, Lam said " China 's market is insatiable."

About 23 percent of products being traded to China from the Philippines is transported via Hong Kong . Lam said because of this, HK is pushing to increase the trading relationship between Philippines and China .

From a tourism-led economy, Hong Kong is now shifting gear to ride-on in China's economic power and focus on service sector (especially as financial center), after it rebounded from the serious economic effect of SARS in early 2000.