Better Hong Kong Foundation Applauds China-US WTO Deal

The Better Hong Kong Foundation applauds the news that the People’s Republic of China and the United States have reached agreement today on their bilateral talks regarding China’s accession to the WTO after 13 years of negotiations.

We firmly believe that Hong Kong will be a major beneficiary of China’s admission to the WTO in three key areas:

1. As a key facilitator of trade between Mainland China and the world, Hong Kong will benefit from the expanded trade opportunities that the WTO agreement is expected to bring to China. This benefit will come in the form of increased need for Hong Kong-based support in such areas as legal, accounting and management services. Hong Kong’s world-class shipping and transport infrastructure will also benefit from the expansion in import and export shipments that will be linked to China’s membership in the WTO.

2. Hong Kong’s strong financial and banking service sector will benefit from the increased trade and investment activity that is certain to be created by China’s WTO membership. This sector is already a key source of trade and finance capital for China’s growing industrial sector.

3. We believe that this agreement will have a dramatic impact on international investor confidence in Mainland China and this can only have a significant spillover effect on Hong Kong and much of the rest of Asia. It will also end the uncertainty that was associated with the annual debate regarding China and the Most Favored Nation status granted by the U.S.

Commenting on today’s announcement, George Yuen, Chief Executive of the Better Hong Kong Foundation said, “We are particularly pleased that this agreement is being positioned as a “win-win” for both China and the United States. Only in this way can these two important countries move forward to work together to build their own economies and those of the rest of the Asia-Pacific region. As such, this agreement is good for Hong Kong and the rest of the region.”

Mr. Yuen said that his organization would continue to support the final stages of negotiations that China must carry out with the European Union before it will have completed all of the hurdles between it and WTO accession. “We will ensure that our network of government and business contacts in Europe are aware of the importance of this agreement to the business communities in Hong Kong and on the Mainland and that they will work with their governments to support timely approval,” he said.

 

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The Better Hong Kong Foundation is a privately funded, non-profit, non-political organization, formed by leading Hong Kong business people. The Foundation aims to reinforce Hong Kong’s role as the regional leading financial, shipping, trading and communications centre. It also serves to enhance greater international understanding between East and West. The Foundation is committed to facilitating communication between Hong Kong and China and the international community.