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Tim Harcourt
Chief Economist
Australian Trade Commission
Sydney
Email: tim.harcourt@austrade.gov.au
29 April 2005
The new J.K. Rowling? Children's author and trade expert Peter Osborne. |
Peter Osborne is an unusual trade diplomat. He is one of Australia's newest published Children's authors. His book titled: "The Golden Dragon" has just been released to great fanfare in Hong Kong. Osborne wrote the book after observing his own kids who have grown up experiencing Taiwan, China and Hong Kong. "One of the most fulfilling things about my job has been to see how the kids respond to different environments, and how they learn and grow. I wrote the book as a memento for my kids to remember the excitement and experience of living in Chinese cultures" he explains. In Peter Osborne, maybe a Roald Dahl, Dr Seuss or J.K. Rowling of the Orient has been born?
But when he is back in his day job how does Osborne see Australian prospects in Hong Kong? "Hong Kong is still a big strategic market for Australia. The city's sophisticated financial markets, technology and professional services sector provide economic momentum and is still a great starting point for Australian businesses in Asia," he said.
There is certainly some evidence to back up Osborne's claims. According to recently published Austrade research, Hong Kong is Australia's 5th largest market in terms of exporter numbers. In 2003-04, there were 4,605 Australian businesses exporting merchandise to Hong Kong to the value of around A$2.8 billion. Hong Kong is the most important destination in the "Greater China" region. The Hong Kong number compares favourably to the 3,245 Australian businesses exporting to China (worth A$9.9 billion) and the 2,307 businesses exporting to Taiwan (worth A$3.7 billion).
Hong Kong is also important for small business as well. According to Sensis, around 7 per cent of small and medium sized enterprises export to Hong Kong, which is a larger proportion than Japan (5 per cent) but lower than New Zealand (44 per cent), UK (21 per cent) or the USA (19 per cent).
Latest data from official sources in Hong Kong shows Australia still making pretty good progress in penetrating the fiercely competitive Island market. In 2004, Hong Kong's imports from Australia rose by 11 per cent to around A$2.8 billion, making us the 16th largest source of imports to Hong Kong. Hong Kong imports a large amount of foodstuffs from Australia, including seafood (crustaceans and molluscs, dried and smoked fish), fruit and nuts, bovine meat and dairy products. Hong Kong also imports metal products, pearls and gems, refined petroleum, coal from Australia and manufactured goods in medical sciences (veterinary medicaments for instance). Another large item is ships, as Hong Kong imported two passenger ships from Australia last year to the tune of A$25.7 million in value.
Of course, given Hong Kong's historical role as an entrepot economy for traders, a large proportion of these imports from Australia are re-exported elsewhere in Asia (particularly to mainland China). For instance, Hong Kong government sources have estimated that 47 per cent of goods imported from Australia to Hong Kong, are re-exported to other destinations.
Is Osborne concerned about the rise of China, and Shanghai in particular as an alternative centre of robust capitalism? "Not at all, Hong Kong is always going to be strategically important and one of the four 'centres of influence' in China along with Beijing, Shanghai and Chongqing in the west. Hong Kong's open economy, transparent regulatory environment and its institutions, particularly in the financial arena are always going to be robust and dynamic," he explained. But Osborne has a warning for potential exporters: "Remember, business is very, very competitive in Hong Kong. So do your homework, and choose your business partners and distributors wisely. Then you can be a success, with a bit of persistence and know how. But it takes time."
After all, Osborne should know, after his recently publishing exploits, that exporting is hardly child's play.
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