Stephen Olson, PBEC president, says Cepa enhances Hong Kong's considerable business attributes (photo credit: HKGCC)

They included the Honorable Dato' Seri Abdullah Ahmed Badawi, Prime Minister of Malaysia; Madam Wu Yi, Vice-premier of China; Dr Supachai Panitchpakdi, the Director-General of the World Trade Organisation (WTO); and General Colin Powell, former US Secretary of State.

All were attending the 38th International General Meeting of the Pacific Basin Economic Council (PBEC), held from June 11 to 14. The meeting, with the theme "Pacific Basin: Setting the Pace for the Global Economy", addressed key issues and concerns facing the region relating to economic growth, trade flows and investment.

Important epicentre

Douglas Fergusson says Hong Kong is the ideal location for global business leaders to discuss regional issues (photo credit: HKGCC)

The PBEC, which was founded in 1967, is the oldest independent business association in the Asia-Pacific region, representing 1,000 senior executives from companies generating over US$11 trillion in sales.  The council seeks to serve as a trusted voice on issues affecting business in the region.

In his keynote opening speech to the conference Hong Kong's Acting Chief Executive Henry Tang stressed Hong Kong's advantages. "The rule of law, a level playing field, clean and efficient government, a low and simple tax system, excellent infrastructure and a large pool of talented and professional workers - these are the essential elements of the market economy we practise. And these are the essential elements for reinforcing our position in future as a leading international business hub, contributing to global and regional economic prosperity."

Mr. Tang also pointed out that the city's role as a pre-eminent platform for doing business in China had been boosted by last year's Closer Economic Cooperation Agreement (Cepa) with the mainland. Cepa is a WTO-compliant Free Trade Agreement signed in June 2003 between Hong Kong and the mainland.

The Cepa advantage

The PBEC itself noted in a statement issued for the conference that Cepa "has added further importance to the role of Hong Kong in China's economic development".

"Hong Kong is a world-class financial, trading, logistics and business centre and, indeed, is a world city," the statement continues. "The city is also the premier gateway to the world's fastest growing economy and most exciting market, China.

"Although China has slowly opened its doors and foreign enterprises are beginning to enter mainland China directly, Hong Kong is still a value-adding partner. In short, Hong Kong is truly the international platform for businesses going in and out of China."

"No other economy in the region generates more intense interest amongst business leaders than does China," said Stephen Olson, the PBEC president. "To the extent Cepa helps Hong Kong-based businesses tap into the China market, it enhances the already considerable attributes Hong Kong possesses as a regional business centre."

The PBEC practises what it preaches. Apart from choosing Hong Kong as the location for its IGM, it last year also moved its headquarters from Honolulu to the city.

"Although the PBEC was housed successfully in Hawaii for approximately 12 years, the board felt that it was important to base the PBEC in a major business centre," explained Mr Olson. "After considering other locations in the region, the board decided that Hong Kong made the most sense due to its concentration of major corporate headquarters and regional offices, its convenience as a travel hub and the amount of media based here."

Related link
Pacific Basin Economic Council