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Complementarity of systems key to continued prosperity
Maintaining the complementarity of the economic systems in China and Hong Kong is a key factor to ensure the continued prosperity of the two places, Secretary for Trade and Industry, Miss Denise Yue, said today (Friday).
Miss Yue was speaking in Shanghai at a conference on "Shanghai-Hong Kong Economic Development and Co-operation" jointly organised by the Economic Research Centre of Shanghai Municipal Government and the Business and Professional Federation of Hong Kong.
"The capitalist free trade system of Hong Kong has enabled it to become a major source of investment and support services for the economic development of the socialist market economy of the mainland. The contribution of Hong Kong to the development of the mainland lies in its different institution and polices," Miss Yue said.
"The important task of policy-makers in the two places is to ensure the faithful implementation of the concept of 'one country, two systems'; preserve Hong Kong's capitalist and free trade system; implement the relevant provisions of the Joint Declaration and the Basic Law which guarantee the autonomy of the Hong Kong Special Administrative Region (HKSAR) in trade and economic matters after 1997; understand clearly Hong Kong as a separate economic identity with separate membership in the World Trade Organisation, Asian Development Bank and the Asia Pacific Economic Co-operation," Miss Yue explained.
As to the future economic and trade relationship between the HKSAR and the mainland, Miss Yue said this should be dealt with in accordance with international laws and practices as foreign trade and economic co-operation between the Chinese mainland as an entity and Hong Kong as a separate customs territory. The HKSAR Government should on its own establish and enforce the system of trade controls, including customs arrangements, administration of export quotas and issue of certificates of origin.
Miss Yue said she was optimistic about future growth in trade between Hong Kong and Shanghai. She also anticipated more investment flow between the two cities. At present Hong Kong is Shanghai's largest source of foreign investment and second largest trading partner, after Japan.
She said: "Hong Kong's experience and success in areas such as finance, shipping, port development, telecommunications and professional services could provide useful contribution to the development of Shanghai.