Submission to the Parliament Inquiry on Australia-Hong Kong Free Trade Agreement by Hong Kong Higher Institutions International Affairs Delegation1
Submission to the Parliament Inquiry on Australia-Hong Kong Free Trade Agreement by Hong Kong Higher Institutions International Affairs Delegation1 1. On 26 March 2019, Australia and Hong Kong signed the Australia-Hong Kong Free Trade Agreement, which was expected to consolidate the following cultural and economic ties between the two territories: a. Approximately 100,000 Australians live in Hong Kong, while around 96,000 Hong Kong people live in Australia;2 b. Over 120,000 people in Hong Kong are alumni of Australian universities;3 c. In 2018, Australian companies based 35 regional headquarters4, 50 regional offices5, and 87 local offices6 in Hong Kong, with more than 600 Australian business having a presence in the city;7 d. In 2018, Australian total merchandise trade with Hong Kong amounted to A$11.4 billion, making Hong Kong Australia’s 14th largest trading partner; in particular, Hong Kong was Australia’s 7th export destination, totalling A$10.4 billion;8 e. In 2018, the total stock of Australian investment in Hong Kong amounted to A$52.2 billion, while the total stock of Hong Kong investment in Australia amounted to A$118 billion, making Hong Kong Australia’s 12th largest source of inwards FDI stock.9 2. However, China’s encroachment on Hong Kong’s autonomy has been eroding the city’s freedom of speech and rule of law which underpin its ideal business environment for Australian companies, as shown by the following cases: a. In 2015, five booksellers who were based in Hong Kong and sold works critical of Beijing were abducted to mainland China and suffered from detentions and forced confessions;10 the incident constitutes a serious breach to Hong Kong’s freedom of press and human rights; 1 The Hong Kong Higher Institutions International Affairs Delegation (the Delegation thereafter) was founded in July 2019 amid a series of protests against the government’s proposed extradition bill in Hong Kong.
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