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It is stated in Matters Requiring Special Attention in 2010-11 that the Branch will “continue to assist the trade to adjust to changes in Mainland’s policy on processing trade through industrial restructuring and upgrading, relocating their operations and opening up new markets”. In this connection, please advise on the following:
(a) What are the projects and expenditure involved?
(b) Do such initiatives include providing support to Hong Kong manufacturers who relocate their production lines from Pearl River Delta to the northern part of Guangdong? If so, what will be done and what is the estimated expenditure?
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Reply :
(a) and (b) Through the following work, the Commerce and Economic Development Bureau gives encouragement to and assists Hong Kong enterprises in upgrading, restructuring and opening up new markets so as to adjust to changes in the Mainland’s policy on processing trade:
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maintaining close dialogue with the trade through the Task Force to Support the Processing Trade and other channels, so as to understand their concerns and views;
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maintaining close liaison with the Mainland authorities at various levels (including through the Hong Kong/Guangdong Expert Group on the Restructuring and Upgrading of the Processing Trade) to reflect the trade’s views on problems encountered in the process of developing the domestic sales market and in the course of upgrading and restructuring, and discuss proposed supportive measures for the trade. We have also been appealing to the Mainland to consult the trade and fully consider their views before promulgation of new policies and legislation, and to give the trade sufficient time for transition and adjustment;
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organising symposiums and seminars through the Trade and Industry Department (TID) and Mainland Offices to enhance the trade’s understanding of new policies, legislation and the business environment;
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disseminating information on trade-related policies, legislation and measures to Hong Kong enterprises through TID and Mainland Offices by means of circulars and newsletters. TID’s website includes a dedicated page on business information on Mainland China, with hyperlinks to the economic and trade websites of 170 Mainland authorities. This platform facilitates Hong Kong enterprises in getting access to trade-related information on the Mainland;
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organising trade delegations to visit the Mainland with a view to enhancing the trade’s understanding of Mainland policies and market development;
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providing Hong Kong enterprises with support services on technological upgrading, improving management, branding and market development, etc., and also Mainland market information through the Hong Kong Productivity Council (HKPC) and the Hong Kong Trade Development Council; and
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with regard to financial support, assisting small and medium enterprises (SMEs) through the “SME Funding Schemes” in areas such as market promotion, acquisition of equipment, upgrading of operational and technical skills, restructuring and business relocation.
The above is our ongoing work. Our work priorities for each year may be different in light of the prevailing economic and business environment and concerns expressed by the trade.
Since there is still uncertainty over the economic situation this year, we have written to the Mainland authorities to convey the trade’s wish for the continued implementation of the supportive measures launched by the Mainland in 2008-09 and 2009-10. We will also follow up on the other proposals from the trade relating to business facilitation and promotion of domestic sales. Furthermore, we are discussing with HKPC collaboration opportunities relating to experience sharing on upgrading and restructuring amongst enterprises.
The above-mentioned work, which falls within the existing duties of this Bureau and relevant Departments and organisations, will be done with existing resources. Funding for the “SME Funding Schemes” has already been approved.
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