Ralph Chow Director, Japan

Hong Kong Trade Development Council

The Strategic Role of Hong KongThe Strategic Role of Hong Kong

Hong Kong’s Handover to China

Pearl River Delta (PRD) cities

China’s coast

Hong Kong:China’s Largest Source of Investment

Percentage share of FDI 1979-2001(Utilised)

Hong Kong47%

USA9%

Japan8%

Taiwan7%

Other29%

Source: MOFTEC

PRD: China’s Biggest Spenders

37.7

22.519.3

10.1

0

5

10

15

20

25

30

35

40

US

$ bi

llion

PRD Shanghai Beijing Tianjin

Retail sales of consumer goods in 2001

Shenzhen 1979

Population: 300,000

Shenzhen 2002

Population: 7,010,000

There are four world-class golf courses in Hong Kong. There are nearly 40 major golf courses in

the Pearl River Delta, ten of which are world-class, all within a few hours drive of Hong Kong

Hong Kong - ShekouWestern crossing

Proposed Hong Kong - Zhuhai -Macau Bridge

Humen Bridge

Pan-Pearl River Delta (P-PRD)Pan-Pearl River Delta (P-PRD)

Provinces + Hong Kong & Macau

40％ China’s Population

1/3 China’s GDP

44％ China’s FDI

120,000 Hong Kong Companies

HK’s Role as

Business Service Center

Provinces + Hong Kong & Macau

40％ China’s Population

1/3 China’s GDP

44％ China’s FDI

120,000 Hong Kong Companies

HK’s Role as

Business Service Center

Hong Kong’s Competitive Advantage

Location – 40% of world’s population within 5 hrs flight time

2003 20041. Hong Kong: 20 mil TEU 21 mil TEU2. Singapore: 16 mil TEU 18 mil TEU3. Shanghai: 11 mil TEU 14 mil TEU4. Shenzhen: 10 mil TEU 11 mil TEU5. Pusan: 9.5 mil TEU 10 mil TEU

20032003 200420041.1. Hong Kong: Hong Kong: 20 20 mil TEU 21 mil TEUmil TEU 21 mil TEU2. Singapore: 16 mil TEU2. Singapore: 16 mil TEU 18 mil TEU18 mil TEU3. Shanghai: 11 mil TEU3. Shanghai: 11 mil TEU 14 mil TEU14 mil TEU4. Shenzhen: 10 mil TEU4. Shenzhen: 10 mil TEU 11 mil TEU11 mil TEU5. 5. PusanPusan: 9.5 mil TEU: 9.5 mil TEU 10 mil TEU10 mil TEU

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Jan-8

0Ja

n-81

Jan-8

2Ja

n-83

Jan-8

4Ja

n-85

Jan-8

6Ja

n-87

Jan-8

8Ja

n-89

Jan-9

0Ja

n-91

Jan-9

2Ja

n-93

Jan-9

4Ja

n-95

Jan-9

6Ja

n-97

Jan-9

8Ja

n-99

Jan-0

0Ja

n-01

Jan-0

2Ja

n-03

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Hong Kong’s trade conditions to risedespite any adverse conditions

War fears

Bird flu

9/11

Asia economic downturn

Global stock market crash

--- Total exports (HK$mn)--- Hang Seng Index

Source: HKCEC and HKECOSA 2001

Hong Kong Convention and Exhibition Centre

Hong Kong as Trade Ｆair Capital

C E P A

CEPA(Closer Economic Partnership Arrangement)

FTAHong Kong Mainland China