You Have Read a Lot, Seen a Lot, Heard a Lot About the Events and Protests in Hong Kong. but What You Read, See, Hear – Or “

HONG KONG ECONOMIC AND TRADE OFFICE HONG KONG FILES

Issue No. 2 / 2019 HONG KONG You have read a lot, seen a lot, heard a lot about the events and protests in Hong Kong. But what you read, see, hear – or “share” on social media – is just one piece of a complex social, economic and political jigsaw puzzle. It is a puzzle that we will solve on our own. And, it may take time. But we are determined to achieve a peaceful, rational and reasonable resolution.

A few points we would like to make … • The Government has started a cross-sector • We are resolutely committed to “One Country dialogue to talk through differences and look Two Systems” which provides the constitu- for common ground with no preconditions in tional guarantee for Hong Kong’s continued the spirit of healing and reconciliation. It is development and success as a free and open our sincere and solemn wish to discuss in a society and economy. calm, respectful and meaningful way. • Hong Kong people have a long tradition of • Hong Kong has always been a resilient, re- peaceful and rational protest, which contin- sourceful and reasonable society. Our people ues. But, we reject the use of violence to re- are our greatest strength and possess the solve our current challenges. Violence solves wisdom and wherewithal to handle anything nothing. We place our trust and faith in the that comes our way. And we will. rule of law which has served us so well for so many decades. • Despite recent disruptions, the fundamentals and institutional underpinning of our economy and society are strong. We remain a safe, open, welcoming and cosmopolitan society and an international connected, vibrant and dynamic economy. We will no doubt bounce back. We always do.

The Government of the Hong Kong Special Administrative Region of the People’s Republic of China Recent developments in Hong Kong Earlier this year, the Government of the Hong Kong Special Administrative Region (HKSAR) introduced the Fugitive Offenders and Mutual Legal Assistance in Criminal Matters Legislation (Amendment) Bill 2019 with a view to plug the loopholes in Hong Kong’s overall mechanism in juridical assistance. The Bill would have allowed for the case-based surrender of fugitives wanted for serious crimes from jurisdictions with which Hong Kong has no long-term surrender agreement. Due to opposition against the Bill for various reasons, relevant legislative work was suspended on June 15. Thereafter, the HKSAR Government has clearly indicated on many occasions that all legislative work in relation to the amendment of the Bill has completely stopped. Nevertheless, processions and protests have continued with many turning violent. On September 4, the Chief Executive announced that the Bill would be “formally withdrawn”.

The HKSAR Government remains committed to resolving issues through dialogue, and rejects the use of violence. The Government has started a cross-sector dialogue to resolve differences and look for common ground.

Despite recent disruptions, Hong Kong remains a welcoming and safe city for tourists and investors from around the world. The city has a long tradition of peaceful and orderly processions. The fundamentals and institutional underpinning of our economy and society are strong. We remain a safe, open and cosmopolitan society and an internationally connected, vibrant, and dynamic economy.

2 Bilateral Exchanges

Belt and Road Summit

Around 5,000 government officials, entrepreneurs and professionals from 69 countries gathered at the fourth Belt and Road Summit jointly organised by the HKSAR Government and the Hong Kong Trade Development Council to explore and discuss collaboration opportunities under the Belt and Road Initiative.

Themed “Hong Kong IN: Creating and Realising Opportunities” and extended to two full days this year from September 11 to 12, the Summit comprised an opening session, two policy dialogue sessions, two plenary sessions, eight thematic breakout forums, a series of open forums, three project pitching sessions and over 700 one-on-one business-matching meetings for more than 240 projects. The first Belt and Road Week was also staged.

Speaking at the opening session, the Chief Executive, Mrs Carrie Lam, highlighted how Hong Kong is well positioned to serve as the gateway to the Belt and Road and its manifold prospects and possibilities in respect of capacity building, green finance, professional services and business matching.

The Chief Executive, Mrs Carrie Lam, attends the Belt and Road Summit at the Hong Kong Convention and Exhibition Centre on September 11.

3 Bilateral Exchanges

Mrs Lam said that Hong Kong will embark on a programme for interactive exchanges on practices and experiences with Mainland ministries in areas including finance, commerce, foreign-related legal matters, dispute resolution, city management, aviation and transportation, professional services and anti-corruption. Such collaboration will enhance professionalism on both sides, ultimately realising Belt and Road projects that are both green and sustainable. She further elaborated on government measures in developing Hong Kong as a regional hub for green finance, citing the successful offering of the inaugural green bond under the Government Green Bond Programme in May this year as an example.

Hong Kong is a professional services hub with deep and diverse pool of talent, benchmarked against international standards and practices. As a commitment to raise the professionals to new levels in pursuit of Belt and Road co-operation, the HKSAR Government has provided funding under the Professional Services Advancement Support Scheme to help the professional services sector to capitalise on Belt and Road opportunities.

To facilitate business matching, business delegations have been organised to explore opportunities in Belt and Road-related countries and regions, new free trade and investment protection agreements have been forged with trading partners, and Hong Kong’s Economic and Trade Office network is being expanded.

At the Belt and Road Summit luncheon, the Financial Secretary, Mr Paul Chan, speaks with the participants on Hong Kong’s edge in professional risk management services and insurance services. Hong Kong, a global risk-management centre and regional insurance hub, is home to an array of multinational insurers and reinsurers who could provide risk-management services and insurance coverage that Belt and Road project owners can count on.

The Secretary for Justice, Ms Teresa Cheng, SC, delivers welcome remarks at the thematic breakout forum entitled “Towards a Greater Success of Belt and Road Projects for Sustainable Investment – Hong Kong Can Lead”.

4 Bilateral Exchanges

The Secretary for Commerce and Economic Development, Mr Edward Yau (first left), chairs a policy dialogue session at the luncheon of the fourth Belt and Road Summit on September 11.

ASEAN Economic Ministers - Hong Kong, China Consultations meeting in Thailand The Secretary for Commerce and Economic Development, Mr Edward Yau, attended the 3rd Association of Southeast Asian Nations (ASEAN) Economic Ministers - Hong Kong, China Consultations meeting on September 9. Mr Yau and the participating ASEAN economic ministers discussed the progress of the implementation of the Free Trade Agreement (FTA) between Hong Kong and ASEAN. He also met with the Deputy Prime Minister and Minister of Commerce of Thailand, Mr Jurin Laksanawisit, and the Secretary-General of ASEAN, Dato’ Lim Jock Hoi, separately on the sidelines of the meeting.

Hong Kong and ASEAN signed the FTA and Investment Agreement (IA) in November 2017, with the parts relating to Hong Kong and Laos, Myanmar, Singapore, Thailand and Vietnam entering into force in June this year.

The FTA and IA between Hong Kong and ASEAN would provide certainty and clarity needed by businesses, and serve as an important pillar to support further economic collaboration. It also sent a very positive signal to the outside world on the mutual commitment to continued open and free trade and investment.

Hong Kong has all along been enjoying close economic and trade relations with ASEAN. From 2008 to 2018, the merchandise trade value between Hong Kong and ASEAN recorded a significant growth of nearly 85%. Since 2010, it has become Hong Kong’s second largest trading partner. In 2018, Hong Kong’s total merchandise trade with ASEAN amounted to USD136 billion, accounting for 12% of Hong Kong’s total merchandise trade with the world. ASEAN was Hong Kong’s fourth largest services trading partner in 2017. 5 Bilateral Exchanges

Mr Edward Yau (sixth left), attended the 3rd ASEAN Economic Ministers - Hong Kong, China Consultations in Bangkok, and is pictured with other ASEAN ministers at the meeting.

Mr Yau (left), on behalf of the HKSAR Government, presents to Dato’ Lim (right) a framed photo of an artwork for display at ASEAN Secretariat’s new building as a testimony of the strong ties and friendship between the ASEAN and Hong Kong. The artwork has multi-layered images of some of Hong Kong’s iconic items. It was created by a group of students and teachers from the School of Design of the Hong Kong Polytechnic University.

Mr Edward Yau (left), held a bilateral meeting with Mr Jurin Laksanawisit (right), on the sidelines of the 3rd ASEAN Economic Ministers - Hong Kong, China Consultations meeting in Bangkok, Thailand.

6 Event Gallery

Outreach visit to Manado, Indonesia From July 24 to 26, the Hong Kong Economic and Trade Office (HKETO) visited Manado, Indonesia to establish ties and explore collaboration opportunities between Hong Kong and North Sulawesi. The delegation met with Vice Governor of North Sulawesi, the Employers’ Association of Indonesia North Sulawesi, Young Entrepreneurs Association North Sulawesi, Indonesian Businesswomen Association, North Sulawesi Investment Coordinating Board, as well as some local journalists. During the meetings, the Director-General of the HKETO, Mr Law Kin-wai, introduced the latest developments in Hong Kong and its professional services. He highlighted that Hong Kong is well-positioned as a gateway for businesses to expand into the China market under the Guangdong-Hong Kong-Macao Greater Bay Area development. Mr Law also met with the rector of Sam Ratulangi University to discuss collaboration opportunities in the education sector.

Jakarta Dragon Boat Festival 2019 HKETO sponsored the Jakarta Dragon Boat Festival 2019 on August 3 which was organised by the Jakarta Paddle Club and Klub Dayung Sejahtera. A total of 48 teams coming from dragon boat communities, companies and schools competed in the event held at Ancol Beach City. While the Dragon Boat Festival and culture dates back more than two thousand years ago, Hong Kong is actually the birth place of modern day dragon boat racing. The event was a wonderful occasion to celebrate the sports, our friendship and cultural exchanges with the Indonesian communities.

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Pre-departure briefing for Indonesia student to Hong Kong On August 4, the HKETO and Indonesian Students Association in Hong Kong (PPIHK) hosted a pre-departure briefing for Indonesian tertiary students who would further their studies in Hong Kong in the coming academic year. Over 200 students and their parents attended the briefing. Student interns from Hong Kong and the PPIHK’s Indonesian student representatives briefed the participants about the university life, transportation, climate, food and other living tips in Hong Kong, so as to help them get prepared for the new environment.

Cinemalaya Philippine Independent Film Festival 2019 The HKETO promoted the Hong Kong film industry at the Cinemalaya Philippine Independent Film Festival 2019 in Manila, the Philippines from August 9 to 10. The award-winning Hong Kong film “Still Human” was featured in the festival’s Visions of Asia section. The HKETO hosted a reception prior to the film screening.

During a media session, female lead of the film, Crisel Consunji, shared her filmmaking experiences, while the Director-General of the HKETO, Mr Law Kin-wai, talked about the efforts of the HKSAR Government in promoting the local film industry, quoting “Still Human” as an example funded by the Film Development Fund under the First Feature Film Initiative.

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Duty visit to Kuala Lumpur, Malaysia The HKETO conducted duty visit to Kuala Lumpur, Malaysia from August 13 to 16. The Director- General of the HKETO, Mr Law Kin-wai, spoke at a seminar about Greater Bay Area Development organised by the Small and Medium Enterprises Association of Malaysia (SME Malaysia) and the Shipping Association of Malaysia. He also met with the Ministry of International Trade and Industry, the Malaysia Digital Economy Corporation, and other business associations including the Associated Chinese Chambers of Commerce and Industry of Malaysia, and Kuala Lumpur Malay Chamber of Commerce to promote trade and business cooperation between Hong Kong and Malaysia.

Duty visit to Bangkok, Thailand and Kuala Lumpur, Malaysia The Director-General of the HKETO, Mr Law Kin-wai, attended the 10th ASEAN Connectivity Symposium “Connecting ASEAN through Financing Sustainable Infrastructure” on August 27 in Bangkok, Thailand. The event brought together diverse stakeholders, including ambassadors and permanent representatives to ASEAN, to network and identify potential areas of collaboration.

Mr Law and the Associate Director General of Invest Hong Kong, Dr Jimmy Chiang, visited Kuala Lumpur, Malaysia on August 28. They attended seminar dinner event co-organised by SME Malaysia and Invest Hong Kong, to discuss opportunities in Greater Bay Area development and Hong Kong as a destination for business and investment.

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InvestHK visits Bali and Jakarta, Indonesia Associate Director-General of InvestHK, Mr Vincent Tang visited Bali and Jakarta from 17 to 20 September. In Bali, he introduced the advantages of doing business in Hong Kong and opportunities in the Greater Bay Area at two events organised by Indonesian Muslim Entrepreneurs Network of Bali and the committee of Indonesia tourism development, Nawacita Pariwisata Indonesia respectively.

In Jakarta, Mr Tang met with Indonesia Chamber of Commerce in Hong Kong. Along with the Director-General of the HKETO, Mr Law Kin-wai, he attended the member gathering event of Youth Indonesian Chinese Entrepreneurs Association and shared about opportunities in the Greater Bay Area and utilizing Hong Kong’s unique advantages. Mr Tang and Mr Law also met with Indonesian Agency for Creative Economy to discuss about collaboration in promoting creative industry investment between Indonesia and Hong Kong.

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Duty visit to Surabaya, Indonesia On September 23-24, representatives from Hong Kong Economic and Trade Office visited Surabaya, Indonesia to establish ties and explore collaboration between Hong Kong and Surabaya. The delegation called on the Vice Mayor of Surabaya, Mr Whisnu Sakti Buana, and met with the East Java Chamber of Commerce and Industry, as well as local entrepreneurs in various industries, including coffee, furniture, and export-import businesses.

During the meetings, the Director-General of the HKETO, Mr Law Kin-wai promoted professional exchanges and trade development between Hong Kong and Surabaya. He also encouraged Indonesian companies to seize the opportunities under the Free Trade Agreement between ASEAN and Hong Kong.

11 Asia’s World City at a Glance

Hong Kong ranked as freest economy in the world

The Fraser Institute once again ranked Hong Kong as the world’s freest economy in the Economic Freedom of the World 2019 Report. Among the five areas of assessment, Hong Kong was ranked top in “Freedom to Trade Internationally” and “Regulation”.

In a statement, the HKSAR Government said the ranking vividly reflected Hong Kong’s long-standing and steadfast commitment to building a free economy with a level playing field.

The Government added it is fully committed to upholding Hong Kong’s institutional strengths, including its fine tradition of the rule of law, free trade and investment regime, simple tax system with low tax rates, favourable business environment and efficient government. These have provided a conducive environment for businesses to thrive, and enabled the economy to prosper and tide over challenges arising anytime. It also emphasised that rule of law and judicial independence are constitutionally protected, as are the fundamental rights and freedoms of Hong Kong residents.

Contact Us Hong Kong Economic and Trade Office, Jakarta 19th Floor, World Trade Centre 2, Jalan Jenderal Sudirman Kav. 29-31, Jakarta Selatan, 12920 Indonesia [email protected] +62 21 8086 9730 hketojakarta @hketojakarta www.hketojakarta.gov.hk