Beijing will try to become one of the first cities in China to open telecommunications, banking and insurance to overseas investment as it focuses on developing its service sectors, a city official said on Wednesday.
"Service industries will become the best-opened area in China as the country joins the World Trade Organization (WTO)," said Li Zhao, director of Beijing's economic and trade committee. "As capital of the country and the host city of the 2008 Olympics, Beijing will likely be a forerunner in the process of opening-up to the outside world."
Li appeared at the fifth Beijing-Hong Kong Economic Cooperation Symposium, which endured its second day on Wednesday.
Other city officials echoed this theme at the conference, explaining to Hong Kong delegates that the move will be crucial to Beijing's progress.
"Beijing is undergoing strategic reform of its economic structure," said Chai Xiaozhong, a member of Beijing's development planning committee. "The participation of investors from Hong Kong will not only bolster the development of Beijing's tertiary industry but also bring considerable reward to themselves."
As of the end of August, there were 6,210 Hong Kong-invested enterprises operating in Beijing, accounting for 37.4 percent of all overseas-invested firms. Most Hong Kong investments are in the real estate industry.
Beijing's preparation to host the 2008 Olympics will provide new business opportunities for Hong Kong, Li said. The capital's development of sports, transportation, telecommunication, environmental protection, media, finance, insurance and real estate are now top priorities, he explained.
The capital plans to open its tourism, accounting, law and consulting efforts further to overseas investments. Well-known multinational corporations are being encouraged to establish agencies in Beijing.
Li also said that Hong Kong's experience in financial services with international standard will be helpful for Beijing.
"Beijing's financial services are far from where they need to be when China enters the WTO, though the financial system has made great progress," he said.
At the conference, Beijing leaders invited Hong Kong representatives to help develop "modern service industries."
Li said the municipal government is applying to the State for the right to pilot renminbi exchanges at foreign banks in Beijing's Zhongguancun high-tech region. This business has been forbidden for overseas banks, including those from Hong Kong.
Beijing and Hong Kong may cooperate in these areas as well as in e-business and software industry, Li said.
The service sector is already a hot area for overseas investment in Beijing, attracting US$3.3 billion last year.
(China Daily October 25, 2001)
