Business leaders from Japan and Hong Kong reaffirmed their aim of promoting and expanding trade , investment, tourism and understanding between the two business communities at both government and private sector level when the Hong Kong / Japan and Japan / Hong Kong Business Co-operation Committees met in Hong Kong today (Wednesday).

The meeting was co-chaired by Chairman of the Hong Kong / Japan Business Co-operation Committee, Dr Raymond Ch'ien, and Chairman of the Japan / Hong Kong Business Co-operation Committee, Mr. Sadao Umeda.

The Committees comprise chairmen and chief executives of major companies in Hong Kong and Japan.

The meeting received messages of support from the Chief Executive of Hong Kong, Mr Tung Chee-hwa, and Minister for Foreign Affairs of Japan, Mr Yohei Kono.

Members noted that they were meeting during a period of steady economic recovery and renewed dynamism for both economies. Japan has picked up from recession since early 1999, while Hong Kong is emerging from the Asian crisis with its economy in good shape and making strides towards greater competitiveness.

During the meeting Japanese members highlighted the pivotal role Japan can play in Asia's economic recovery, and explained that structural changes in corporate Japan and reform in the country's financial sector could allow greater opportunities for partnership with Hong Kong companies. They also discussed evolving supply chain management systems, and ways in which such developments might enable Hong Kong companies to increase exports of goods and services to Japan.

The meeting welcomed Hong Kong's economic recovery, continued stability and renewed competitiveness as a trading partner. Hong Kong members described the "reinvention" of Hong Kong's economy and the stronger emphasis now being placed on information technology and knowledge-based industries. They also urged greater partnership between Hong Kong and Japan, particularly between small and medium-sized enterprises (SMEs). The potential of the Internet as an enabling medium was discussed.

In discussion of the global environment for business, members assessed the impact of the recent agreement between China and the US paving the way for the mainland's membership of the World Trade Organisation, and opportunities arising from the mainland's commitment to further trade liberalisation.

The meeting agreed that Hong Kong's role as an intermediary and regional services hub will become increasingly important for Japanese companies, enabling them to approach the China market by taking advantage of Hong Kong's established legal, administrative and managerial capacities, and its expertise on the mainland.

During the meeting members were briefed by Chairman of the Hong Kong Trade Development Council, Dr Victor K. Fung. Guest speakers included Commissioner for Tourism, Mr. Mike Rowse and Director of China Centre for Economic Research of Beijing University/ Professor of the Department of Economics of Hong Kong University of Science and Technology, Professor Justin Lin.

Mr Rowse summarised the potential benefits brought by the recent decision to build Hong Kong Disneyland, and the strategy for extending Hong Kong's appeal as a leading tourism destination. And Professor Lin spoke on the impact of China's expected accession to the WTO and the state of economic reforms in the country.

Both sides firmly intend to continue this high level dialogue and to follow-up on the ideas addressed during the meeting. The dialogue is contributing to the development of much needed informal networks which can promote issues of mutual interest to business and governments.

The Committees agreed to convene their next joint plenary session at a time convenient for both sides in Japan in 2000.

Total trade between Japan and Hong Kong exceeded US$ 32 billion last year, and Japan is Hong Kong's third largest export market. Japan is also the fourth largest source of foreign investment into Hong Kong after the UK, the Chinese mainland and the US.

The secretariat of the Japan/ Hong Kong Business Co-operation Committee is the Keidanren. The Hong Kong Trade Development Council serves as secretariat for the Hong Kong / Japan Business Co-operation Committee.