The Impact of US-China Relations on the Hong Kong SAR
Dr. Victor K. K. Fung
香 港 和 美 國 之 間 的 經 貿 關 係 一 直 是 香 港 貿 易 發 展 的 重 要 因 素 。 香 港 成 為 特 別 行 政 區 後 ， 我 們 必 須 讓 貿 易 夥 伴 清 楚 了 解 香 港 的 實 際 情 況 ， 並 繼 續 維 繫 及 推 動 兩 地 經 貿 關 係 的 發 展 。
Hong Kong's robust business relationship with the United States, always a crucial factor in our trade performance, requires even more careful attention and fostering in Hong Kong's new era as a Special Administrative Region.
This is not to be wondered at. It acknowledges that genuine differences exist in the way some opinion leaders in the US perceive Hong Kong since our reunification with China.
Within the American business community, there is a clear emphasis on the two systems part of the "one country, two systems" formula underpinning our future. July 1, 1997, is widely accepted by American business executives to mean minimal - if any - change in dealings with Hong Kong.
By contrast, in political circles, there are leading figures and influential media commentators who place more emphasis on the one "country" part of the formula. For them, politics, economics and foreign policy are inseparable, as are freedom, democracy and human rights - making Hong Kong's unique circumstances as an autonomous entity within China difficult to accept. Rather, Hong Kong is seen in the broader context of Sino-US relations which, while steadily improving, are vulnerable to sudden swings.
What, in practical terms are the implications for Hong Kong?
At business-to-business level, it is clear that US-Hong Kong relations in the post-1997 period are going ahead without missing a beat. This was foreshadowed in a survey last year by the American Chamber of Commerce in Hong Kong. Ninety-five per cent of member companies considered the business environment would be very favourable or favourable for the next five years, with more than half planning to expand their business here.
The US is an old friend and a staunch business partner of Hong Kong. Total trade between us last year reached US$53 billion and is growing, so far this year, at about two per cent.
US companies are very knowledgeable about Hong Kong's advantages as the gateway to the mainland Chinese economy and as an operational base for the whole region. There are more than 1,200 US firms in Hong Kong, more than 400 of which are regional headquarters or regional offices. It is estimated the US has nearly US$14 billion invested here, making it one of the largest foreign investors. And more than 37,000 US citizens live here. AmCham in Hong Kong is the largest chamber outside the US itself. It is also an articulate proponent of Hong Kong in Washington DC on issues such as renewal of Most Favoured Nation trading status for China.
The foundations of our bilateral trade relationship go very deep. Hong Kong has benefited for decades from the openness of the US market. The US is second only to China as a market for Hong Kong. Our manufacturers and exporters have built enduring relationships with major US retailers and brand names, producing under their labels. Our traders source products throughout the region of American customers.
At the same time, Hong Kong companies help American firms to introduce their products to consumers in the mainland and elsewhere in Asia. We actively encourage American companies to export more goods and services to Asia's dynamic economies, with Hong Kong as their partner.
At a more philosophical level, Hong Kong and the US are closely bound by a shared belief in open markets, free trade and the rule of law in international commerce. The hard-working, entrepreneurial spirit of Hong Kong and the resourcefulness of the small and medium companies who drive our economy resonate strongly in the US. We both cheer for the "little guy" and admire those who dare to attain their vision of a better life.
All these factors provide a strong basis for continued stability and growth in the Hong Kong-US economic and trade relationship, one on which the Trade Development Council will continue to build through our presence in five key US cities, our extensive promotional activities in the US and the five Hong Kong Business Associations which we support there.
In talking to the business community about Hong Kong in the 21st century, we therefore find ourselves frequently preaching to the converted. However, the concerns of those who view Hong Kong from the "one country" end of the telescope are more complex and more difficult to address, enmeshed as they are in a wide-ranging domestic as well as foreign policy agenda.
Working very much in our favour, now, is the fact the actual moment of reunification has passed. Millions of television viewers in the US and around the world witnessed Hong Kong move smoothly and confidently into the "post-1997 era", they have heard for the themselves the pledges of Central Government and Hong Kong leaders to make the "one country, two systems" concept work.
As speculation over Hong Kong's future gives way, at last, to facts - and as the gap narrows between what is perceived and what is real - we have a number of powerful messages to deliver.
From a business perspective, there are equally powerful messages about Hong Kong's strengths as Asia's pre-eminent services economy and international financial centre and about our unique capabilities as a strategic partner to help American companies access new opportunities and increase their business in the world's fastest-growing economic region.
The private sector in Hong Kong has a particular role to play in conveying these facts and messages to members of Congress. And where we encounter scepticism in Congress, we should use all our powers of persuasion to encourage a "wait and see" attitude before members rush to judgement about the SAR.
The need to give our newly-established SAR Government some "running room" was the heart of the Trade Development Council's message at our annual Hong Kong Dinner in Washington in May this year. We emphasised how important it is for Hong Kong to work out by ourselves the full meaning of the high degree of autonomy which China has solemnly pledged to us. We explained that this means being left, by governments and friends alike, to find our own path through the challenges which lie ahead.
We asked two things of our American friends on the eve of the SAR's establishment. One was to keep their market open to Hong Kong, regardless of where we physically assemble our products. This, of course, was an appeal for unconditional renewal of China's Most Favoured Nation status. But, above all, we asked them to have faith in the ability of Hong Kong people to make a success of our future as an SAR.
Now, with the SAR firmly up and running, this advocacy effort will demand more than strong messages and good communication skills. We must maximise every opportunity for opinion leaders to visit Hong Kong and see for themselves how we are managing our affairs; how we are remaining competitive as a business partner for America in the Pacific Century.
At the same time, we must develop an ever more sophisticated working knowledge of the US political system and a deeper understanding of the changing dynamics of the US-China relationship. For no other external relationship has a greater bearing on Hong Kong and, arguably, no single factor will exercise greater influence over our trade growth in the new century.
Dr. Victor K. K. Fung is Chairman of Committee of Governors of HKPRI. He is also Chairman of Hong Kong Trade Development Council.