CHAPTER 7
TRADE AND INDUSTRY
90
HONG KONG'S economy continued to restructure during the year from a low-cost, assembly-type manufacturing entity towards a regional service and commercial centre and a high-value-added manufacturing base. The government continued to promote service industries and upgrade technological infrastructure.
Hong Kong's external trade experienced a moderate growth in 1997, with total trade increasing by 4.7 per cent over the previous year. In particular, re-exports registered a 5.0 per cent increase, reflecting the continued important role of Hong Kong as an entrepot. The gross total value of re-exports was $1,244.5 billion. Imports rose by 5.2 per cent to $1,615.1 billion.
Trade and Industrial Policies
Hong Kong's continuing success as a leading commercial and manufacturing centre owes much to a simple tax structure and low tax rates, a versatile and industrious workforce, an excellent infrastructure, free flow of capital and information and the government's firm commitment to free trade and free enterprise. The government believes its task is to facilitate commerce and industry within the framework of a free market. The HKSAR maintains no tariffs and no regulatory trade and investment measures other than those required to discharge its international obligations or to protect health, the environment and access to high technology.
The government's industrial policies aim to promote industrial development by creating a business-friendly environment and providing adequate support services. The government zones land for general and specialised industrial use, maintains and develops advanced education and training facilities, ensures a modern legislative and regulatory environment, funds facilities to enhance productivity and quality as well as encourage applied research. It also encourages technology transfer through an investment-promotion programme. However, the government neither protects nor subsidises any specific industries.
Trade and industrial policies are kept under review by the Trade and Industry Bureau of the Government Secretariat. The Secretary for Trade and Industry is advised on industry matters by the Industry and Technology Development Council (ITDC) and on trade issues by the Trade Advisory Board and the Textiles Advisory Board. Members of these bodies include prominent industrialists and businessmen, representatives of major industrial and trade organisations and relevant government officials.