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continues to put in place the policies and infrastructure that will enable it to achieve impressive growth into the next century, my hope is that considerable priority will be given to improving the conditions for foreign trade and investment. Here I am referring to such moves as easing restrictions on profit repatriation, perhaps by moving toward a more freely convertible currency system; and adopting export-oriented, subsidy-free trade policies while lowering import barriers that shield domestic industries from foreign competition. I also have in mind the need to reduce some irritants in Chinese business practices for example, arbitrarily high labor and expatriate office and housing costs and unpredictable customs and tax levies.
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My advocacy of such measures does not derive from a narrow interest in seeing Hong Kong or American businessmen make greater profits out of China. It is based on the sincere belief that China's development can be appreciably accelerated by growing trade and investment ties with the outside world. I would note that my own country is a prime example of what foreign investment and technology can do for economic development. America wouldn't be where it is today were it not for a massive infusion of British capital and technology which began after the Civil War and continued into the 20th century.
I feel confident that China will alleviate existing obstacles to greater foreign investment in due course. This confidence is partly based on the significant progress already registered in the relatively short time since China abandoned its counterproductive policy of self-reliance. I also sense that China's need for increased foreign capital flows to offset recurring deficits in merchandise trade will help produce a more attractive foreign investment climate.
My recent trip through the Pearl River Delta also brought home to me a few lessons that Hong Kong and American businessmen should keep in mind when operating in the China market. It is remarkable how simple truths sometimes seem to be overlooked like hiring bilingual agents who understand the differences of operating in a Chinese business environment; like doing thorough feasibility studies before leaping into complex joint ventures; like being patient, and like the value of having a representative spend enough time in an area to develop a first-hand knowledge of the market and the personal ties so important to doing business in China. While the rising chorus of disgruntlement about doing business in China is primarily attributable to Chinese policies and practices, I suspect that some of the problem results from the failure of the foreign partner to do his homework.
Let me dwell on the language problem for a minute since it's a favorite bugaboo of mine. "'m sure most of you have sensed that the skills of the interpreters assigned to you in China are wanting. Well, take it from someone who speaks the language, wanting is nowhere near a strong enough term. Heed my warning - your interpreter is more likely to confuse than clarify the issue. If you're serious about doing business in China, either start putting in four hours a day for the next two years learning the language or make darn sure you bring along someone whom you know speaks excellent Mandarin and English. And while China is working hard to improve its standard of English, all I can say is please, redouble the effort.
In my more than four years here, I have witnessed Hong Kong's resiliency in coming through some difficult and uncertain times. Things are looking up now, but there are bound to be occasional jolts in the future. But those of you who have heard me talk about Hong Kong know of my fundamental optimism about the territory's long-term prospects. This optimism was voiced when the 1997 issue first raised its head. It has been reinforced in the interim by the growth of the economic
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