China's WTO Entry to Boost Trade with Hong Kong and Britain

Strategic Insights -

The impending entry of China into the World Trade Organization (WTO) is poised to significantly impact trade between Britain and Hong Kong, according to British Consul-General in Hong Kong James Hodge. Hodge noted that Hong Kong serves as a crucial gateway between the two countries, with half of Britain's trade with China passing through the territory. This is expected to lead to a surge in both visible and invisible trade between the two nations.

Key Takeaways:

  • Approximately 3 billion pounds of British trade with China passes through Hong Kong every year.
  • By May 2000, British firms had invested in 2,645 joint ventures in China with a paid-in capital of 5.6 billion pounds and a further 10.5 billion pounds contracted.
  • In the first five months of 2000, 91 new British enterprises were set up on China's mainland with a contractual capital of 212 million pounds.
  • The visible trade with China is at 2 billion pounds.
  • The INTERGER Hong Kong Pavilion project, a joint initiative between the Hong Kong government and the British Trade International, will exhibit an innovative, environment-friendly and technologically-advanced "flat of the future" next year.
  • Joint efforts will be made to develop educational programs in language teaching and training of young Chinese lawyers, and to enhance the exchange of technological personnel in environmental protection.
  • Despite concerns about a slowdown in Hong Kong's economy, Hodge is optimistic about a continued growth rise, citing the government's ability to recover quickly from the Asian financial crisis.

Statistics:

  • 3 billion pounds: The annual value of British trade with China that passes through Hong Kong.
  • 5.6 billion pounds: The paid-in capital of British firms invested in 2,645 joint ventures in China by May 2000.
  • 10.5 billion pounds: The future contracted investment of British firms in joint ventures in China by May 2000.
  • 212 million pounds: The contractual capital of 91 new British enterprises set up on China's mainland in the first five months of 2000.
  • 2 billion pounds: The value of visible trade with China.
  • 97%: The percentage of British Chamber of Commerce members confident about the state of the local economy according to the 2000 Business Confidence Survey.

Sources:

  • XINHUA News Agency
  • COMTEX (http://www.comtexnews.com)