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

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Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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