25/07/2023 (Hong Kong) - Hong Kong's Chief Executive, John Lee Ka-chiu, has embarked on a diplomatic tour to Singapore, Indonesia, and Malaysia, with the aim of securing their support for Hong Kong's bid to join the Regional Comprehensive Economic Partnership (RCEP). The tour is part of a broader strategy to enhance cooperation with these ASEAN nations and to highlight the mutual benefits that Hong Kong's RCEP membership could bring.
Lee's mission is to solidify backing from these three ASEAN nations, emphasizing that Hong Kong's inclusion in the RCEP would be mutually beneficial for the city and the RCEP economies. He plans to highlight Hong Kong's unique position of being supported by the mainland while maintaining global connections under the One Country, Two Systems principle.
The Chief Executive is keen to encourage more ASEAN businesses to expand their operations in Hong Kong and explore the commercial potential of the Guangdong-Hong Kong-Macao-Greater Bay Area (GBA) by leveraging Hong Kong's professional services and financial platforms.
Lee underscored that ASEAN, being Hong Kong's second-largest trading partner and the world's fifth-largest economy, holds immense development potential and boundless business opportunities. He noted that the eastward shift of the global economy will make Asia and ASEAN the driving forces for economic growth.
Accompanying Lee on this tour are 30 representatives from various sectors, including finance and logistics, as well as five government officials. Experts believe that Hong Kong's potential RCEP membership could stimulate regional trade and investment flows. The city's unique position, backed by the mainland, could enhance cooperation between China and RCEP members, further propelling the development of the GBA.
Zhou Shixin, director of the Institute for Foreign Policy Studies at the Shanghai Institute for International Studies, stated that Hong Kong could further enhance regional connectivity and trade and investment flows for the RCEP members due to its status as a free trade port and its relatively central location.
Experts also anticipate potential cooperation between Hong Kong and each of the visited countries. For example, the similarities between Singapore and Hong Kong could benefit local businesses and investors. Meanwhile, Indonesia, the current ASEAN chair, is expected to reach more cooperation agreements during Lee's visit. As for Malaysia, more collaboration in sectors such as semiconductors and oil is anticipated.
Liang Haiming, dean of Hainan University's Belt and Road Research Institute, suggested that Hong Kong's RCEP membership could boost the GBA's development, potentially transforming the GBA into a regional yuan settlement center to facilitate trade among RCEP members.
Hong Kong already conducts 70% of its goods trade with RCEP members, according to a report by the Hong Kong Trade Development Council. The RCEP, which became effective for all 15 members on June 2, represents a new stage in the full implementation of the world's largest free trade area in terms of population, economic, and trade volume.