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BIZCHINA / Center
HK backs its process companies
By Joseph Li (China Daily)
Updated: 2007-08-04 09:53
HONG KONG: Hong Kong-funded process manufacturers in the Pearl River
Delta have been offered support to lessen the impact of a new State
policy.
The Hong Kong SAR government will help the companies upgrade or shift to
high value-added production and provide loans.
The government has also approached local banks and the Hong Kong
Association of Banks, asking them to offer more services and support to
the companies.
The export tariff rebate for over 1,800 processed goods will either be
lowered or cancelled, in line with a policy issued by the Ministry of
Commerce last month.
Process manufacturers can now obtain bank guarantees for exports, but
they will be required to pay deposits of up to 50 percent of the export
value under the new policy, effective August 23.
Acting Financial Secretary of Hong Kong Frederick Ma said the new trade
policy would adversely impact the Hong Kong-funded firms and the city's
economy.
He said the SAR government will assist the companies and communicate
their position to the central government.
A task force comprising government officials and trade representatives
from 14 associations met for the first time on Friday.
The task force will study and assess the impact of the new policy and
find ways to support the affected companies.
The industry is willing to comply with the new national trade policy,
according to Permanent Secretary for Commerce and Economic Development
Yvonne Choi, who spoke after chairing the task force meeting.
But Hong Kong-funded firms want a longer buffer period and greater
support to deal with the new policy.
"As far as exports of processed items are concerned, the industry is
hoping it will be allowed to use bank guarantees or letters of credit in
lieu of deposits.
"We would also like to know if Hong Kong manufacturers are interested in
moving to the central and western regions on the mainland, as Hunan
Province - among others - is willing to offer them preferential
treatment," she said.
(China Daily 08/04/2007 page10)
(For more biz stories, please visit Industry Updates)
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