Externally Oriented Economy

74. A unique feature of Hong Kong is our international outlook and global network. We have many different talents, who have helped to link Hong Kong with the rest of the world through education, work, cultural activities as well as family and social ties. We have many enterprises that have maintained stable co-operative relationships with foreign partners in trade, finance, investment and other areas. They have helped build a good reputation for Hong Kong and establish our position in the globalisation process. We also have a large expatriate community that calls Hong Kong home, a host of consulates and foreign missions, thousands of multinational companies and business people, a wide range of international organisations and schools, and a substantial concentration of overseas news and media companies. To the international community, Hong Kong is a city steeped in Chinese culture but with many institutions and practices common to other major cities worldwide. People from all around the world feel at home here. To people in the Mainland, Hong Kong is a city characterised by its “international flavour” but whose people speak their language and share their culture. They find it extremely convenient to do business. Under “One Country, Two Systems”, Hong Kong has developed into Asia’s world city - not just “another Chinese city”.

75. We will continue to consolidate and strengthen our ties with the international community. Our high degree of autonomy enables us to enhance our profile and competitiveness in the global arena through commerce, trade, finance, culture, sports and tourism. We act as an irreplaceable bridge linking the Mainland and the world. In view of new developments in our overseas markets, we need to strengthen the coverage of our networks. We plan to add a new economic and trade office in Europe to assume responsibility for such promotion in eastern Europe. We play a prominent and constructive role in international and regional affairs. For example, we will host the Sixth Ministerial Conference of the World Trade Organisation in December this year, to participate actively in promoting global trade liberalisation and regional economic co-operation.

76. Backed by the Mainland, we are well positioned to capitalise on the tremendous momentum of China’s rapid economic growth. The huge investments made by Hong Kong business people in the Mainland have laid a solid foundation for expansion. The continued growth in demand of Mainland enterprises and people has created new business opportunities for Hong Kong. Our well-developed services sector can serve as a driving force to help the manufacturing industry and other related industries in the Mainland build brand names and expand their business. Our well-established market mechanism can facilitate the integration of Mainland enterprises into international markets. We will continue to promote and expedite the process of attracting Mainland enterprises, both state-owned and private, to Hong Kong.

77. Located in a fast-growing region, Hong Kong faces both opportunities and challenges. We will continue to take measures to improve our unique strengths, attract talent and enhance our overall competitiveness. Hong Kong is the freest economy in the world. We have a sound legal system and free flow of information. We respect private ownership and honour our contractual obligations. We have a comprehensive and sophisticated business infrastructure, good corporate governance, a clean and highly efficient public sector and a simple and low tax regime. The Economic and Employment Council, led by the Financial Secretary, works on improving our business environment by pushing for simplified procedures and the elimination of outdated or unnecessary regulation in government departments. Hong Kong’s intellectual property rights (IPR) protection regime meets international standards. We will keep abreast of technological developments and market changes to ensure that our IPR protection regime moves with the times. To implement the “Market Leads, Government Facilitates” principle, we will consider delivering more public services through Public-Private-Partnerships.