SAR boosts ties with Asia-Pacific partners
APEC meetings hear of city’s progress in green trade policies, digitalization
Hong Kong is ramping up efforts to bolster economic ties with Asia-Pacific countries while upholding green and sustainable trade policies.
Government officials made the remarks during the Asia-Pacific Economic Cooperation meetings held on Monday, as a growing number of Chinese mainland enterprises seek to relocate their overseas supply chains via the city.
Hong Kong “will continue to seek free trade agreements and investment protection agreements with more economies, while striving to join the Regional Comprehensive Economic Partnership as soon as possible”, Hong Kong Financial Secretary Paul Chan Mo-po said. The RCEP is a free trade agreement among the Asia-Pacific countries, including Thailand and Vietnam.
Chan was speaking at the APEC China Business Council Hong Kong Forum, themed “Sustainable global supply chains”.
The finance chief said that unilateralism and protectionism have risen during the COVID-19 pandemic and the evolving geopolitical landscape, with some countries increasing tariffs, imposing sanctions, and enacting restrictions on cross-border investments.
Companies and economies are likely to seek to reduce their dependence on single markets or suppliers, instead opting for a more-diversified approach to mitigate risks, Chan said. “More mainland enterprises are restructuring their production capacities and supply chains both at home and abroad, engaging deeply in the global industrial division of labor and cooperation,” he added.
In response to the trend, he proposed in the 2024-25 Budget establishing Hong Kong as a center for cross-border supply chain management and trade financing for mainland enterprises.
Chan said he believes that under the “one country, two systems” principle, Hong Kong can contribute to the upgrading and transformation of industrial and supply chains, both nationally and globally.
“Hong Kong universities boast strong fundamental research capabilities … in green scientific research. The Hong Kong Science Park and Cyberport are home to over 200 green technology companies and startups, … which have already entered ASEAN and the Middle East markets,” he added.
At a separate APEC CEO Summit 2024: High-level Forum and Global Roadshow, with the theme of “Opportunities to further connect the Pacific”, Hong Kong Secretary for Commerce and Economic Development Algernon Yau Ying-wah highlighted Hong Kong’s commitment to ensuring its trade policies are green and sustainable, in line with the San Francisco Principles endorsed by APEC economic leaders in November.
Hong Kong established its Green Technology and Finance Development Committee last year to assist in the formation of an action agenda for promoting the development of Hong Kong into an international green technology and financial center.
Yau said Hong Kong “has commenced negotiations with Peru on a free trade agreement”. In addition, he said Hong Kong is ready to join and contribute to the RCEP.
Apart from sustainability, Yau identified digitalization as another opportunity to connect the Asia-Pacific region. He said Hong Kong has implemented various measures to support e-commerce and capacity building for small and medium-sized enterprises.
The roadshow provides a platform for entrepreneurs from Peru, Hong Kong, and the mainland to forge business connections and explore potential partnership opportunities, as Peru will chair APEC in November.
Fernando Zavala, chair of APEC CEO Summit 2024, CEO of Intercorp, and a former prime minister of Peru, said the nation boasts one of the lowest inflation rates in Latin America, serving as a testament to the stability of its economic policies.
He said Peru is set to launch the Chancay Port this year, “directly linking the Pacific shores. With a total investment of $3.6 billion, … the port will accommodate the world’s largest vessels and reduce transit time between China and Peru by 33 percent, or 10 days”.
Established in 1989, APEC comprises 21 members in an economic forum that promotes free trade and sustainable development in the AsiaPacific region.