China. On both these issues we have put our case with vigour. Ultimately, trade wars benefit nobody and end up hurting everybody. They cut growth, destroy jobs and raise prices. I hope that China and the USA can settle their trade differences in a way which enhances rather than diminishes prospects for the global economy.
The Governor's Business Council
8. Despite our track record of sustained economic growth, we cannot take future success for granted. Hong Kong's position is strong; but it is not impregnable. I am anxious that we should do everything we can to help and nothing to hinder the businesses on whose success in the market-place we all depend. I want to mobilise the very best talent and experience that Hong Kong has to offer to advise me on how best we can sustain our economic growth, now and into the next century.
9.
That is why I am establishing a Governor's Business Council. I am inviting distinguished members of the business community to join it. Their mandate will be to advise me on:
—first, how to keep Hong Kong the most business-friendly location in
Asia;
-secondly, the impact of Government policies on business, so as to
modify or abolish those that stand in the way of progress;
-thirdly, how to maximise the potential of all our resources and of
our position at the heart of the Asian economy; and
--fourthly, how best to promote Hong Kong's trade and industry,
including inward investment.
Competition, Efficiency and the Consumer
10. Let me stress the central importance which we must give to competition. Hong Kong lives by trade. Our goods and services must, therefore, be competitive in world markets. We cannot afford to subsidise the inefficient or bail out the incompetent. Competition is also our best defence against inflation. Our businesses have defended themselves against rising prices by searching for new production locations, new sources of efficiency and new market opportunities.
11. Hong Kong is proud of its free and competitive markets. But a more sophisticated and prosperous community has become increasingly
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