Transcription
I think I very much emphasize this point: Hong Kong must maintain being an outward-oriented society and an outward-oriented economy. If we cannot continue to do so, we will have no future. Before watching the video, everyone remember to share, like, and [music] subscribe to Insight, and most importantly, press this bell, so you won’t miss our latest videos.
Victor, now you? You were the chairman of the Trade Development Council from 1991 to 2000. So can you tell us, during your tenure? Those nine years? What things made you feel, that is, you could say very meaningful? Or maybe even interesting things, you can tell us. Today, I am truly very happy to have the opportunity to meet with everyone here. Really recalling many, many memories. Ah, I, I answer your question. I recall my ten years as chairman of the Trade Development Council? The most important thing? Was Hong Kong’s return to China. July 1, 1997. As soon as I came in, I had to directly address that issue. You know at that time, you know at that time, globally? There were doubts about Hong Kong’s future. I really went everywhere to tell all our trading partners, governments, and all, that after July 1, 1997, Hong Kong would be there, and not just there—it would be even more prosperous. So this, actually at that time, honestly, was a very difficult task. Look at that place, like 1995, 1996. Front page. Remember that? That was back then. But at that time, the key thing was, as someone just mentioned, the Trade Development Council received a mission: to build our current new convention center. This new center was for the 1997 handover ceremony. So, honestly, we had no time to waste. We finally had three years and four months. Not months. From that Hong Kong... that place, to this building today. I was truly moved at that time. Really, at that time, all our colleagues, and of course Hong Kong’s construction industry, all of us in the organization, and Hong Kong society, truly gave their full support. For a joke, at that time, I couldn’t even go to dinner? Why? Because especially near the end, it was chaotic. Why? Many of my friends in real estate said, “Hey, our property supply is being affected because of what you’re doing.” In the end, what was the result? Just one week after the handover, it rained. So this was a huge effort. So this, I think, was perhaps at that time, during my tenure, the most important mission and what I recall as most significant. But after 1997, honestly, everyone knows Hong Kong was not really at ease. 1997. July 2, 1997, the Asian financial crisis hit. Everyone knows how tense the process was back then. After that, when China joined the WTO, there was a lot of work. Actually, Hong Kong, not just the Trade Development Council, but Hong Kong society, helped our country with things like how to convince the world, especially in the US, that is, different places, and global business partners and different governments, that China’s entry into the WTO was good for the whole world. Finally, around the end of 2000, early 2001, China joined the WTO. So these, I think, I can say were my most important tasks. This response, this one, was a very big contribution. That we can sit here today is all thanks to Victor. So I would also like to ask the four of you to share how you see Hong Kong, how you see our current situation, and how you see the role of the Trade Development Council. Please start. Thank you.
I think Hong Kong is now at a very interesting point. That is, truly at a very important turning point. You know, if you look at Hong Kong’s current situation? I think, truly, there is a new horizon opening up. We, from our traditional positioning, are now seeking a new positioning. I am very happy that we now say Hong Kong is not just a super connector. Being a super connector is a must, but I think it’s not enough. Now we need to add value—value addition is the key. If we look at the bigger picture, reflecting on the developments from 1997 to now, I think it’s very interesting. If you look at our role in entering the country, entering China, I think a very important indicator is foreign direct investment, FDI. Actually, we can say we have been doing better and better. Let me share a few figures. In 1997, foreign investment entering China through Hong Kong accounted for about 40%. From 1997 to today, the country’s foreign investment has increased fourfold. Hong Kong’s market share has risen from 40% to 70%. So think about that—I think this is a very important indicator. That is, we continue to be a very important conduit into China. This is an indicator; we can see many things. We continue to play that unique gateway role. If we look at the opposite side, the trend of helping China go outward, I think the picture is completely different. We can say we have not really found any new positioning in helping China go outward. Early on, it was because China’s production capacity was so strong. We could do well in exports and re-exports. But everyone knows that if Chinese manufacturing wants to go to Europe and America, political issues are becoming more and more difficult. So that re-export business, as everyone sees, will become increasingly difficult. But now, I see that everyone knows, especially prominently in the past five years, we see a huge trend: China’s strength, especially its production strength, is increasingly globalizing. This trend of Chinese enterprises going global is, I think, a major global trend. Of course, large corporations are doing this, but my focus is really on medium-sized enterprises. Because large enterprises face a lot of geopolitical pressure; if you look at it pragmatically, it’s not so easy. Small enterprises are actually very dynamic. But their problem is that they need platforms. Those platforms, like others, themselves face huge geopolitical pressures. So you think, actually, medium-sized enterprises are our future. If I look at the country’s definition of medium-sized enterprises, it’s annual revenue of 60 million USD. I think actually it can be broader, up to 100 million or 150 million USD. So they are truly medium-sized enterprises, very, very dynamic. These people, if they go global step by step, everyone knows the way to go abroad—first maybe selling goods, or setting up points. Then gradually they take root, especially in the Global South. So gradually, they might move some production lines to Southeast Asia or other developing countries. I think that trend is one of the biggest trends globally in the next 10 to 20 years. Hong Kong’s positioning is exactly to help them as a platform for going outward. We have always placed great emphasis on this, because over the years we have been doing things like how to help B2B provide many services, such as financing, legal services, other services, accounting services, arbitration, and many things. Actually, we can do very well in these. Truly, we have a trade development network with such a huge global reach. We talk about over 50 points? 60-plus points? 51 points, sorry. I missed one. So actually, this is our asset. How do we use this to help them build a global outward network? Think about it—that is Hong Kong’s future, Hong Kong’s positioning. I think in the next 10 to 20 years, holding on to this is very important. So think about it: if we are so strong in inbound, and also starting to have this real economy going outward, the big trend of going through Hong Kong, when inbound and outbound collide, that creates a very important market. This is where we can add value. In Hong Kong, after that part? I think not only Chinese companies going global, but also medium-sized enterprises from Southeast Asia and even globally, when they fully internationalize, they will consider Hong Kong as a value-adding place and also enter Hong Kong. In the end, Hong Kong will have a very important future role. The mainland market will, at some time in the future, definitely become one of the largest markets globally. That is, globally, there are not many large markets. The US is one now, but in the future China will be too. When their market opens up, many people will think about how to enter China. That will be our next step. Our outward side is about how to help global companies enter China further. I think, from what I see, this can give Hong Kong very stable growth, at least until the middle of this century. So this is how I think about Hong Kong’s future direction and positioning. Thank you, very comprehensive. So, I would like to take the next moment to ask someone to give a feeling, so that a junior like me can learn the next path. How should I proceed?
Mr. Ma, no. I really don’t dare to claim, but I can give my personal view. First, about Hong Kong. I think I very much emphasize this point: Hong Kong must maintain being an outward-oriented society and an outward-oriented economy. If we cannot continue to do so, we will have no future. I remember at one point, there was a period that really made me sad. Hong Kong became an inward-oriented society, an inward-oriented economy. We directly had protectionism in Hong Kong. What benefit is there? If we cannot continue to maintain this positioning, I think our future will be very problematic. So this, I think, is something that Hong Kong people, Hong Kong itself, for the country and for ourselves, must keep in mind as the direction. I think within this direction, the Trade Development Council is of utmost importance. Actually, leading this outward-oriented society and outward-oriented economy is our ultimate goal. Going outward. Going outward in various forms. I think different eras have different kinds of outward orientation. Sometimes it’s about attracting people in, sometimes it’s about going outward. Sometimes it’s a period of attracting in, sometimes a period of going outward. So within these different domains, the main thing is to maintain this. This is about the Trade Development Council’s future. And I, having truly experienced so many years, working with many colleagues here, working so hard together with the central government, I have great confidence. The Trade Development Council has this capability, this opportunity, and this leadership talent, especially under Chairman Ma. I’ll treat you to dinner today. Under wise leadership. Today, if you like expert analysis, remember to share, support, and subscribe to Insight, and most importantly, press this bell, so you won’t miss our new videos.