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Breaking new ground

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When the SAR's top tycoons head out west on Sunday on a trip to scout for business opportunities in the mainland's most backward provinces, they will find themselves on far different ground than when they ventured across the Pearl River Delta two decades ago.

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Then, it was merely a question of taking advantage of cheap and abundant labour, plenty of land, and easy communication for the short trip between the two. Small entrepreneurs spearheaded the relocation of Hong Kong's manufacturing base to the Shenzhen Special Economic Zone just across the border and beyond. Commuting was easy, and there was a shared language and culture.

The remoteness of the region that the tycoons now head for is the main reason why it has missed out on the prosperity enjoyed by the residents of the eastern seaboard. A vast area covering half of China, yet populated by only a quarter of its 1.3 billion population, it is home to more than half of the nation's poorest, and many ethnic groups. Development of the region will bring about an industrial and technological revolution that is essential for the social stability of the country.

However, most of the SAR's business elite will probably find the industrial environment there unfamiliar. And the west is more in need of technical know-how and investment to exploit its huge untapped reserves of natural resources of coal, oil and gas, rather than commercial expertise, for which SAR businessmen are famous.

Essentially, this trip is a goodwill mission. Hong Kong led the way when the late Deng Xiaoping launched his open-door policy in 1978. This time, it is hoped that the SAR's business skills and international links will also play an essential, if secondary, role as the west's infrastructure is developed.

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The commitment to help in this enterprise is just as significant as any contribution that the group can make. Forging stronger links with the mainland shows the SAR's support for the 'one country' principle. It is also an opportunity for Hong Kong to introduce an undeveloped region to global business practices and the merits of a system that flourishes on straight dealing, transparency and the rule of law.

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