The hero behind the success of the ASEAN – Hong Kong Free Trade Agreement
(23 November 2017)
Huanqiu News – On 12th November 2017, the Free Trade Agreement (FTA) between Hong Kong and the Association of Southeast Asian Nations (ASEAN) was signed in Passay City, the Philippines. One of the contributors to the success of the Hong Kong – ASEAN FTA is Dr Jonathan Choi, Chairman of Sunwah Group and Chairman of the Hong Kong Chinese General Chamber of Commerce.
The Secretary for Commerce and Economic Development of Hong Kong, Mr Edward Yau (sixth from left), with other Southeast Asian Trade Ministers at the 2nd ASEAN Economic Ministers – Hong Kong, China Consultations (AEM – HKC) in Manila, the Philippines
Referring to “Hong Kong – ASEAN Businessman”, people would think of Dr Jonathan Choi. Eight years ago, Dr Jonathan Choi, in a disscussion with the then Vice President of China H.E. Xi Jinping and the then Deputy Prime Minister of China H.E. Li Keqiang, proposed that Hong Kong should join the ASEAN Free Trade Area (AFTA). In 2011, Dr Jonathan Choi, together with several members of the Chinese People’s Political Consultative Conference in Hong Kong, submited the proposal “Enhancing the role of Hong Kong in the economic relationship between China and ASEAN” to the Hong Kong Government. In the Chinese People’s Political Consultative Conference organised in March 2012, the Hong Kong Government submitted this proposal to the Central Government to promote Hong Kong’s entry into the AFTA.
In 2011, Dr Jonathan Choi, Chairman of the Hong Kong Chinese General Chamber of Commerce, met with H.E. Xi Jinping, the then Vice President of the People’s Republi of China
In the following years, with Dr Jonathan Choi’s continuous support, the Chief Executive of Hong Kong Special Administrative Region, Mrs Carrie Lam had strengthened the ties between Hong Kong and Southeast Asian (SEA) countries through many diplomatic visits. Dr Jonathan Choi had accompanied Mrs Lam in these visits including meeting with the Prime Minister of Malaysia H.E. Najib Razak in 2014 to promote the bilateral cooperative partnership between Hong Kong and Malaysia; as well as visit to Singapore in 2015 and visit to Vietnam in 2016. Notably, in September 2017, at the 14th World Chinese Entrepreneurs Convention organized in Yangon, Myanmar, Dr Jonathan Choi invited Mrs Carrie Lam to attend as the Guest of Honor and one of the keynote speakers.
Hong Kong enterprises have always been in close relationships with SEA countries and Sunwah Group is no exception. From the first generation of Sunwah Group that is Dr Jonathan Choi’s father – Mr Choi Kai Yau had started to expand the Group’s business to SEA markets. In 1970s, due to the increase in seafood products consumption and the limited supply of those products in Hong Kong, Mr Choi Kai Yau decided to expand Sunwah’s business to Vietnam to explore this potentially abundant seafood supply. Within half a century, Sunwah Group had successfully expanded their businesses to many SEA markets. Additionally, Dr Jonathan Choi has always been contributing his effort for the development of the cooperative relationship among China, Hong Kong and SEA countries. Therefore, Dr Jonathan Choi is fondly named “National Diplomat” by many Hong Kong citizens.
In a recent interview, Dr Jonathan Choi explained the meaning of signing Hong Kong – ASEAN FTA: “Many years ago, we (Hong Kong investors) did not realize the huge potential of SEA region, as such, we did not focus our investment on this market. However, after 20 years of continuous growth, many economic aspects such as importing – exporting as well as foreign exchange reserves in this area have developed tremendously. The growing of middle-class and young population has resulted in the increase of goods consumption. At the same time, Hong Kong produces many high-quality goods that can meet the demand of consumers in SEA region. SEA has become one of the largest market of Hong Kong, besides Mainland China and the U.S”. When mentioned his contribution in the success of signing Hong Kong – ASEAN FTA, Dr Jonathan Choi shared, “This is thanks to enthusiasm, excercising everyday and doing positive works”.
Dr Jonathan Choi in the interview with Huanqiu News Agency
Below is the interview with Dr Choi:
Reporter: Why have you been promoting the signing of Hong Kong – ASEAN FTA during the last 8 years?
Dr Jonathan Choi: Firstly, the Hong Kong – ASEAN FTA not only brings economic benefits to Hong Kong but also empowers Hong Kong to attend and express opinions at all Free Trade Conferences in SEA region in the future. I often say, Hong Kong should establish strong presence at all international free trade areas in the world. For example, for many years, there is an imbalanced situation in trade relations between Hong Kong and many SEA countries. Specifically, since Hong Kong has a free economy, many SEA companies doing businesses in Hong Kong receive tax incentives as well as simple and professional administrative procedures. However, all Hong Kong companies doing businesses in SEA countries have to face high taxes and complicated administratice procedures. After Hong Kong join the AFTA, this imbalanced situation will be eliminated, which will foster a trading environment that benefits both sides.
Secondly, besides economic benefits, Hong Kong can assist ASEAN in developing professional services. The Minister of Indonesia Ministry of Commerce once told me: “We need Hong Kong’s support in developing professional services such as lawyer, accountant/auditor, engineer and architect. Until now, Indonesia has been relying on Singapore due to the limited supply of these services. After the signing of Hong Kong – ASEAN FTA, we believe that our country’s service industry will develop further.”
Reporter: Why did it take such a long time for the Hong Kong – ASEAN FTA to be signed?
Dr Jonathan Choi: 8 years ago, when I first proposed Hong Kong to join the AFTA, I did not receive a positive reply from ASEAN. Then I came to Beijing, had a meeting with the Central Government and they stated that because of the governing principle “One country, Two systems” in Hong Kong, they could not support my proposal. In 2010, I had the opportunity to meet with the then Vice President of the People’s Republic of China, H.E. Xi Jinping, and explained the importance of Hong Kong joining the AFTA. From the 16th to 18th August 2011, in Hong Kong, the then Chinese Deputy Prime Minister, H.E. Li Keqiang, introduced 36 principles in which there were 2 policies replying my proposal, one was “Encourage Hong Kong to actively participate in regional economic cooperation” and the other was “Promote the cooperation between domestic companies and Hong Kong companies”. With the support from the Central Government, the Hong Kong Government started the negotiations with ASEAN.
In 8 years, we had many discussion and negotiations with all the ASEAN’s Ministers of Commerce. The first question they asked was what benefits Hong Kong can contribute to the ASEAN as well as to each country member. 10 SEA countries organised conferences, even invited experts from Singapore to study and report on the advantages of Hong Kong joining the ASEAN.
Reporter: What is the largest obstacle during the whole negotiation process?
Dr Jonathan Choi: The largest obstacle was to pursuade all 10 countries to approve Hong Kong joining the AFTA. There were some countries, due to political conflicts with the Central Government, originally did not approve. Nevertheless, we had shown our determination in continuously promoting economic exchanges and pursuading SEA countries that Hong Kong can contribute greatly to the development of each country as well as the whole region. Finally, the Hong Kong – ASEAN FTA was signed in November 2017.
Reporter: We know that Sunwah Group has been investing in Yunnan province, China. Are there any future projects of Sunwah Group at Yunnan?
Dr Jonathan Choi: Sunwah Group and Yunnan Government is planing to organise the ASEAN International Film Festival at the Fu Xian Lake, located in Yu Xi Town in Yunnan province. Additionally, Sunwah Group will invest in movies and TV dramas filmed at Yunnan province. Yunnan is expected to become the “Center of Light” of South Asia and South East Asia regions. Therefore, Sunwah Group will continue to increase our investment in Yunnan through the expansion of the South-West Highway that connects Yunnan to neighboring provinces and countries.
Thank you, Dr Jonathan Choi.
Translated from: Huanqiu News
