Mr. Zhong Yongxi, chief representative of the Hong Kong Trade Development Council in East and Central China

As a bridge between exhibitors from Hong Kong and the China International Import Expo (CIIE), the Hong Kong Trade Development Council (HKTDC) plays an important role in organizing and promoting exhibitions. On the basis of the success of the first expo in 2018, the HKTDC continued to set up the “Hong Kong Service Industry Exhibition Area” and “Hong Kong products exhibition area” in the business exhibition of the second expo, occupying a total area of 1432 square meters, which is a 70 percent increase compared to last year. This year, the HKTDC organized 47 Hong Kong enterprises to participate in the exhibition, together with more than 140 enterprises applying for participation by themselves. In 2019, the total number of enterprises from Hong Kong participating in the expo is close to 200, an increase of about 20 percent compared with the first year.

During the second China International Import Expo, the reporter from Eastday invited Mr. Zhong Yongxi, chief representative of Hong Kong Trade Development Council, to give an exclusive interview, asking him about the participation of Hong Kong enterprises this year, and also reviewing the achievements of Hong Kong exhibitors made last year and their expectations for this year.

Hong Kong enterprises actively participate with unique advantages

During the interview, Zhong said that compared with the first session of the expo, when he didn't even know which kind of enterprises and products could participate in the expo and made hasty preparations, this year's arrangements were carried out in good order. At the beginning of this year, the organization of the exhibitions had already been completed. In addition to the invitation issued by the HKTDC, many enterprises took the initiative to contact the council to apply for participation. Therefore, because of the successful foundation of the first expo, the enterprises that participated last year decided to exhibit again, and many new exhibitors were also added to the list. For example, 31 Hong Kong food enterprises participated in the “Hong Kong Products Exhibition” in the “Food & Agricultural Products” exhibition area, which is an increase of 9 enterprises over the last year, and 15 exhibitors participated in the expo for the first time, among which were many well-known brands. The “Hong Kong Service Exhibition”, located in the “Trade in Services” exhibition area, provided places for 16 exhibitors, including Invest Hong Kong, service industries like construction, logistics, design, brand and promotion marketing, professional services and information technology, among which 12 exhibitors participated for the first time.

And the HKTDC also provides great support for the whole process, from application ans customs clearance to booth construction, preparation of the negotiation area and even tea supply - providing a one-stop service. It’s fair to say that exhibitors don’t have to do much themselves, which greatly facilitates the participation of enterprises.

So, what are the advantages of these Hong Kong enterprises in the face of direct competition from overseas competitors? “Many service companies in Hong Kong, whether in logistics, trade financing, design or finance, have international professional backgrounds and are also very familiar with the mainland market,” Zhong said. “For example, some service traders can provide one-stop services for overseas enterprises, from overseas layout, communication with overseas enterprises, product follow-up and customs clearance to the landing services after going to the mainland, and then sales channels arrangements -- foreign enterprises only need to focus on their products.”

 “In the food industry, many Hong Kong enterprises will also introduce local flavor products for the mainland market in the production process. For example, some seasonings will be made sweeter for the local market in Shanghai,” the representative added.

Cross-border e-commerce platform stands out with great spillover effect

In addition to bringing more exhibition opportunities to many Hong Kong enterprises during the expo, the spillover effect after the expo has also been very significant. Zhong introduced that after the end of last year's expo, the Ministry of Commerce of Thailand formed a strategic partnership with the subsidiary corporation of Hong Kong King Wai Group (KWG), International Merchandise Exchange & Exhibition (IMX)”. This successful case has had a positive effect on helping China expand its imports and promote the entry of commodities into the country along the route of the Belt and Road Initiative.

The contract of the strategic cooperation is exactly the great opportunity that the Ministry of Commerce of Thailand sees in the expo. At present, China is the largest cross-border e-commerce market in the world. With the advent of the CIIE, a number of domestic cross-border e-commerce platforms, including the Little Red Book, Ymatou, Alibaba 1688 Import Source Shanghai station and Koala have matured, and the licensing has become a part of the construction of the “6 days + 365 days” perennial exhibition trading platform. IMX, a Hong Kong funded enterprise, has another licensing platform - Bauhinia Valley, the official cross-border shopping platform of the Shanghai free trade zone. This platform integrates the functions of a bonded warehouse, commodity display, port service, customs clearance and settlement, and online and offline sales channels, so it is sought after by small- and medium-sized businesses in Thailand.

Attention on channel expansion and model innovation

 “Compared with the number of orders directly signed on the spot, our enterprises pay more attention to the establishment of channels and the innovation of models,” Zhong said when he was asked about what Hong Kong enterprises expect from the expo. “For example, the Ministry of Commerce of Thailand, which signed the contract with us last year, has handed over the customs clearance and landing services of Thai goods to our enterprises this year. The Thai government only needs to make preparations in organizing their application and exhibitions. This kind of cooperation is long-term, and it can even provide value-added services such as packaging design for the Chinese market from Thai enterprises.”

 “In addition to cross-border e-commerce platforms, we are also combining the current sales models (social e-commerce) of some platforms, such as Tik Tok and Wechat. It's meaningful to innovate and explore the superposition of channels and models like this.”

Finally, on the HKTDC and Hong Kong business on the expo, Zhong said that the expo has injected new impetus into China's further opening-up and is an important platform for cooperation between Hong Kong and the mainland. Last year, the majority of exhibitors were satisfied with the flow of people and the quality of buyers, and believed that the mainland market has great potential for development. This year we learned that in order to maximize the spillover effect of the expo, Shanghai is also working on a more detailed plan. In addition to the first 31 “6 + 365” perennial exhibition and trading platforms, the Hongqiao bonded logistics warehouse for imported goods fully magnified the driving and spillover effects of the expo this year. This is a very good bridge for Hong Kong enterprises to enter the mainland market. It is believed that the CIIE will open a new chapter of global trade for Hong Kong enterprises.