|
Schemes of regional economic cooperation within China, such as CEPA and that for the pan-Pearl River Delta (PRD) area, will benefit not only the regions involved but also foreign investors.
Harley Seyedin, president of the American Chamber of Commerce in Guangdong, made the observation during an interview with China Daily.
Seyedin is also the chief executive of the First Washington Group, with 14 years of experience doing business in South China.
Pan-PRD co-operation, initiated by the government of Guangdong Province and launched in June this year, involves nine provinces, and Hong Kong and Macao special administrative regions (SARs) in southern China and is also known as "9+2." CEPA, or the Closer Economic Partnership Arrangement, which took effect in January this year, is a free-trade pact between the Chinese mainland and the two SARs.
Both pacts are intended to remove trade barriers to promote economic integration.
A true discussion among pan-PRD regions should "end up with a uniformed mechanism or system of rules and regulations that apply to business and the conduct of business along inter-provincial lines," said Seyedin, who was once involved in drafting the North American Free Trade Area pact.
This should result in a better coordinated trade environment and transport mechanisms and movement of goods across the "9+2" regions, which now occasionally have problems because of the different regulations in those regions, he said.
"Any time you make an effort to bring trading partners together, which results in the removal of trade barriers, it benefits everybody. Not just the parties involved, but everyone."
"In this case, you have the governors of nine provinces and chief executives of the two SARs to try to open doors. They didn't say they open the door only to mainland companies or Hong Kong companies. They said they want to open the door to trade," he said, adding he sees tremendous opportunities arising from the pan-PRD scheme.
Seyedin mentioned CEPA as an example.
"CEPA had helped American companies investing in the mainland, not just Hong Kong companies," he said.
American companies have long been a very big partner of Hong Kong firms, doing business in large part through Hong Kong from the mainland, he said.
"So when Hong Kong is easier to do business with the mainland, all other countries with joint venture partnerships within Hong Kong will benefit."
US logistics giant BAX Global, for example, launched a wholly-owned company in Guangzhou, the capital of Guangdong, last week, capitalizing on CEPA.
Starting in 1982, BAX Global's Hong Kong subsidiary meets all the criteria to be considered a Hong Kong company under CEPA and hence approval for its wholly-owned firm in Guangzhou.
Seyedin said a number of US companies have approached their advisers, such as accounting firms and law houses, to look at the opportunities for investment in the mainland through CEPA. The number of such cases would increase over the next several years, he said.
Although China will open its market up more as it implements its commitments to the World Trade Organization, CEPA will still have its own appeal, he said.
"CEPA will not disappear after WTO. CEPA will by then be established as a norm mechanism. So there are options."
Addressing the skepticism of some people over free trade, Seyedin said "certainly there would be a shifting of jobs and manufacturing services across borders. As long as it is free trade and it is two-way, a balance will be created."
Seyedin also sees opportunities coming from the Asian Games in 2010, which Guangzhou will host.
"The opportunities will come because of the recognition of the name of Guangzhou. Guangzhou needs a brand name, Guangdong needs a brand name."
An event coming sooner than the 2010 Asia Games which could help Guangzhou build its brand name will be the annual meeting of American Chambers of Commerce in 21 Asia-Pacific countries and regions, to be held in Guangzhou in March next year.
The meeting will be attended by presidents and executive directors and other high-level officials of the chambers.
(China Daily August 24, 2004)
|
