SAR urges mainland to push HK products
(China Daily)
Updated: 2004-08-26 10:20

Prominent business figures in Hong Kong are calling for bolder measures from the central government under the CEPA (Closer Economic Partnership Arrangement) framework in a bid to buoy up Hong Kong's economy.

Hopefully, the green light from the central government will enable 500 more types of Hong Kong-made products to enter the mainland market on a zero-tariff basis from the beginning of next year, according to Jose Sunsay Yu, president of the Chinese Manufacturers Association of Hong Kong (CMAHK).

If achieved, the number of Hong Kong products eligible for zero tariff will be significantly raised from 374, a figure specified when the CEPA agreement was signed a year ago.

"Talks on the new list are well under way... I think approval on that will be very likely, and it won't make much impact on the mainland market," said Yu, whose association represents a large trade union in the Hong Kong Special Administrative Region (HKSAR) that has more than 3,700 member businesses, mostly running manufacturing-plus-trade operations.

The new list, plus expected relaxation of the rules to judge whether a product is originally made in Hong Kong or simply undergoes final processing and packaging there, will be a big push in the implementation of CEPA, which, as Yu said, has had limited beneficial effect so far for Hong Kong companies at large, as a majority of them have transferred their manufacturing operations to the mainland.

The CEPA agreement requires Hong Kong manufacturers to meet certain rules of origin before they can enjoy a tariff exemption when exporting their products to the mainland.

Official statistics indicate that, by the end of July, about 1,400 export deals worth about HK$580 million (US$69 million) were exported to the mainland on a zero-tariff basis.

Most of the deals involved textiles, pharmaceuticals, electronics and plastic products. The proposed 500 new kinds of products with zero tariff include food, cosmetics, watches and jewellery, according to Yu.

"What we hope ultimately is that the expansion of products' scope eligible for CEPA zero-tariff treatment will lead to an inflow of investments in Hong Kong," said Yu.

The central government is also expected to open up the vast mainland market to Hong Kong service sectors. Yu voiced these expectations on the eve of the Hong Kong Brands and Products Expo, a traditional trade fair in Hong Kong that will, for the first time, be staged in Shanghai in a bid to promote famous Hong Kong products and brand names among locals.

Scheduled to take place at the Shanghai Exhibition Centre from September 2 to 5, the fair will feature about 100 reputed Hong Kong firms that are expected to tout their products, mainly household catering equipment, to the daily consumption market.

The brands shown at the event include Aqua Pure, Lee Kum Kee, A Fontane, Hang Fung, Sau San Tong and China Paint, a wide variety of sectors that range from jewellery to traditional Chinese medicine.

"We noticed that some Hong Kong brands already have a lot of credibility among mainland consumers, yet we need to raise their awareness of many other Hong Kong products," said Kui Ming-wah, chairman of the fair's executive committee.

Close