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PDB welcomes China-Taiwan trade ties
The Secretary for the Hong Kong Port Development Board, Mr Tony Clark, said today (Friday) that he welcomed the proposed resumed shipping links between Taiwan and China.
"Any easing of artificial barriers to trade can only be good for those communities, such as Hong Kong, which depend on trade for their living," he said, adding that at present the volume of trade between China and Taiwan was heavily weighted in favour of Taiwan.
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"Much of that trade is now, and is likely to continue to be, channelled through Hong Kong the fact is that the greater proportion is destined for areas within our natural hinterland. Hong Kong will inevitably remain the principal port of the Pearl River Delta area for a good many years," he said.
He said the key effect was likely to be, first, that cargoes originating in Fujian province would feed directly into Taiwan rather than passing through Hong Kong as they (illogically) did at the present time and second, that certain transhipment cargoes would move from Hong Kong to Kaohsiung. Those cargoes generate the least in terms of value added to our economy, so this will be no bad thing.
An important side-effect is likely to be that there will be added stimulus to investment by Taiwanese in the key developing areas of China - such as the Pearl River Delta. This would offer scope for greater industrial production in Hong Kong's natural hinterland and hence open up new opportunities for Hong Kong companies.
Mr Clark said in terms of cargo volumes passing through the port, PDB forecasts were that, in a scenario where there was total freedom to trade between the Mainland and Taiwan, the growth rate in container throughput would be reduced by about one percent. This would have no measurable effect on the pressing need for additional terminals to be brought in as quickly as possible in our port.
End/Friday, May 5, 1995