|  Donald Tong, through the Hong Kong Commissioner for Economic Affairs and Trade in the United States in October, recently visited Miami to promote trade relations and to discuss opportunities for Florida businesses in Hong Kong.
With headquarters in Washington, he directs his government in its efforts to achieve closer economic, trade and cultural relations between the United States and Hong Kong and is the chief representative of the Hong Kong region in this country.
Hong Kong is a part of the People's Republic of China. But under der''China one country, two Systeme''Formel, Hong Kong - a major World Trade Center with a population of more than 7 million - manages its own affairs, except for External Relations and Defense, by Beijing.
The officials, the contributions so far to trade in Hong Kong and offices in Washington, Toronto, have been transformed into a multitude of government agencies. These include a position in Internal Affairs, where his duties were the organization of the Olympic events in 2008 Hong Kong. He was also Deputy Director General at the Food and Environmental Hygiene Department and worked in the construction of the Hong Kong International Airport and the Airport Railway.
Tong, who was born and raised in Hong Kong, met with the Miami Herald, after we have a Greater Miami Chamber of Commerce meeting.
Q.Why is Florida of interest to Hong Kong?
A. The [United States] is Hong Kong's second most important trading partner, its fifth-largest import source and second-largest export destination. And Florida plays an important role in our trade relations.
Florida's exports to Hong Kong have grown significantly in recent years. Last year, they were $578 million, a 55 percent increase from 2004, according to figures from the U.S. Department of Commerce.
We do not have much manufacturing in Hong Kong so we rely heavily on imports. Florida and Miami are important sources of computers, other electronic equipment, chemical products and other goods.
My visit is designed to strengthen our commercial ties and to talk about opportunities for Miami-based small and medium businesses in Hong Kong. Florida companies like Citrix Systems, Secure Tracking Systems and others have established offices in Hong Kong. We can help other businesses that want to invest in Hong Kong, and those that wish to do business through Hong Kong with the rest of China and the Asia Pacific region.
Many American companies clearly see opportunities for growth in Hong Kong. About 1,300 U.S. companies today have offices or regional headquarters in Hong Kong. The figure for 2006 was about 400 companies.
On a personal level, Florida has a special place in my heart. This is my first visit to Miami, but I spent my honeymoon in Florida 18 years ago. And my family and I came to Florida for a vacation in the late 1990s.
Q. What advantages does Hong Kong offer investors?
A. Hong Kong is a free and pluralistic society, and we believe in free trade and open markets. We have a simple system of low taxes, and we continue to use a system of common law buttressed by the rule of law and an independent judiciary.
We enjoy a GDP per capita of around $30,000, which is quite high in international terms. And our well-educated workforce speaks both fluent English and Chinese and has a very rich experience in doing business in international markets and in China. For businesses, Hong Kong is an ideal gateway to China and the Asia Pacific region. Q. How has the world economic decline affected Hong Kong?
A. Because of the severity of the current crisis, we expect GDP to decrease by between 2 percent to 3 percent this year, the first negative growth for a full year since the Asian financial crisis. Last year, Hong Kong's GDP increased by 2.5 percent, which was down from 6.4 percent in 2007 and the 10-year trend rate of 4.7 percent. Unemployment is currently at 5 percent and we anticipate it will increase.
Despite this, Hong Kong's economic fundamentals remain strong. We have a prudent fiscal policy and fiscal reserves of more than $62 billion, equivalent to 18 months of government expenditure. We also have a strong current account surplus and a strong net international investment position. In addition, our government has introduced a series of measures to stabilize the financial markets, create and preserve jobs and support enterprises. The mainland government has also offered Hong Kong significant support.
Q.How do you think the economic downturn will affect trade between Florida and Hong Kong?
A. For 2009, it's hard to tell. We still continue to rely on Florida for exports, and I'm confident that our economy and that of the U.S. will recover.
The inauguration of air cargo flights by Cathay Pacific Airways between Hong Kong and Miami in March is a strong vote of confidence in our increasing trade ties. Moreover, the State of Florida and Broward County are thinking of sending trade delegations to Hong Kong.
In terms of future expansions, we are studying the possibility of setting up operations in South America, especially Brazil, Chile, Peru and Argentina, as well as in India and the Islamic countries. At some time in the future, we would like to open an office in Miami.
Q.Are there any barriers to expanding trade between Hong Kong and Florida?
A. We are concerned about protectionism. The temptation to turn to protectionism can appear in any economy, especially when we go through difficult times. Some people think that protectionism will protect jobs. It doesn't work. We saw this in the Great Depression. It only delays recovery. We should not lose sight of the benefits of free trade, which has improved the living standards of so many around the world. |
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