Chicago businesses reassured of Hong Kong’s viability

Director of the Hong Kong Economic and Trade Office, New York Monica Chen speaks about Hong Kong's competitive viability in Chicago at the POWER Program: Women in International Business Dinner in Chicago on May 14.

Hong Kong, a city that weathered the 1997-98 Asian financial crisis with the resilience of its people, will emerge from the current global economic meltdown in good shape to capture the opportunities ahead, Director of the Hong Kong Economic and Trade Office, New York Monica Chen recently told the Chicago business community.

“Throughout the years of my career in the Hong Kong government, I have witnessed the city’s development into a major international and financial center, its change of sovereignty and its speedy recovery from the Asian financial turmoil and SARS crisis with vitality,” Ms. Chen said.

“China’s unprecedented economic growth and its increased economic and social ties with Hong Kong have greatly empowered the city to stand the financial volatility,” she said.

Ms. Chen shared her unique career experience and pointed to Hong Kong’s financial strengths before dozens of other businesswomen at the POWER Program: Women in International Business Dinner in Chicago on May 14.

Highlighting Hong Kong’s challenging path to recovery, Ms. Chen noted the government established the Task Force on Economic Challenges immediately after the financial tsunami’s outbreak and is working on a three-pronged strategy of “stabilizing the financial system, supporting enterprises and preserving employment.”

More recently, the task force identified for further development six industries in which Hong Kong enjoys clear advantages: testing and certification, medical services, innovation and technology, cultural and creative industries, environmental industry and educational services.

With an economy that has ranked as the world’s freest for 15 consecutive years by the Heritage Foundation and The Wall Street Journal, Ms. Chen said Hong Kong will continue to provide a sound, stable and transparent environment for investors at home and overseas.

On top of that, Hong Kong’s undemanding and straight-forward tax structure, sound legal system, liberal immigration policies and free flow of information and ideas have always been the city's competitive edges for entrepreneurship, she said.

Turning to business opportunities in China, Ms. Chen pointed out that given its strategic location at the mouth of the Pearl River Delta, efficient airport and port facilities, mature financial and professional services, as well as a comprehensive supporting network, Hong Kong has long enjoyed its status as the gateway to China.

Since June 2003, economic cooperation and integration between the Mainland and Hong Kong have further been enhanced by the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), she noted. Further trade cooperation and liberalization of services were agreed upon on May 9. Under this latest CEPA agreement, the Mainland will introduce 29 liberalization measures covering 20 service sectors, including the two new sectors of research and development and rail transport. Thus, the total number of service sectors covered by CEPA will be expanded from 40 to 42.

Hong Kong is also poised to become one of the first cities to conduct off-shore renminbi trading, Ms. Chen said. “Being the first city outside the Mainland to start settling trade using the renminbi, Hong Kong will provide more business opportunities for its banks and more certainty for companies in settling trade by reducing the risk of exchange-rate fluctuations,” she said.

The POWER Program was organized by the Women’s Networking Community, which aimed to teach high-potential women valuable career skills through breakout sessions at the general reception. It was also part of the Hong Kong Comes to Chicago 2009 Festival, which presented an array of art and cultural events, ranging from a film series and music concert to gallery talks.