Chinese official seeks Hong Kong cooperation over Shanghai FTZ

Shanghai-Free-Trade-Zone

Shanghai’s vice mayor on Monday urged cooperation from Hong Kong over China’s ambitious new free-trade zone (FTZ), saying its potential to boost growth will offset any competitive threat to the former British colony.

The FTZ in Shanghai, launched in September, will allow unfettered exchange of China’s yuan currency as part of a bold push to reform the world’s second largest economy.

But the zone has been seen as a threat to Hong Kong’s free economy and its status as a finance hub, with fears that capital might flow out to the FTZ. Observers have said that it could be a warning by Beijing to dampen political protests in Hong Kong, a semi-autonomous region of China.

But Tu Guangshao, executive vice mayor of Shanghai, brushed aside those concerns, saying the FTZ could serve as an engine for collective growth.

“We should make proactive efforts to seize the opportunity. It should provide room for (both) Shanghai and Hong Kong (to grow),” Tu said at the Asian Financial Forum conference in Hong Kong.

“I heard people saying that resources may flow from Hong Kong to Shanghai. There is such possibility. But we should rather see… there will be a greater market need.”

China formally set up the FTZ in Shanghai on September 29, with the government promoting free conversion of the yuan currency, greater cross-border use of the yuan and interest rate liberalisation.

Hong Kong has fallen to number three in the International Institute for Management Development 2013 World Competitiveness Yearbook, compared to its top spot in 2012.

Asia’s richest man Li Ka-shing warned in September that the new FTZ will have a “big impact” on Hong Kong’s economy, urging the city to up its game to avoid losing out.

But Tu, citing potential areas for mutual cooperation, said Hong Kong and Shanghai could develop new financial products, adding that both cities will be “motivated” to work together under the new mechanisms to be implemented in the FTZ.

“Hong Kong and Shanghai can together fuel growth in Asia and globally,” Tu said.

 

 

 

Source : Channel News Asia | January 13, 2014

Advertisements

About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
This entry was posted in Business, Economy, Global Sourcing and tagged , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s