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It appears that Japan could be the biggest obstacle to Hong Kong's bid to join the Regional Comprehensive Economic Partnership - a major free-trade agreement among Asia-Pacific countries, according to sources.
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This comes after Chinese Premier Li Qiang recently expressed hope during a visit to Australia - an RCEP member - that the country would support Hong Kong's effort to join the trade pact. The city had hoped to start the RCEP accession process in January 2022.
However, the SAR's application to join the agreement - which accounts for 30 percent of global GDP - seems to have stalled, as such applications typically only take 18 months to approve.
Sources within the government said the primary resistance within RCEP is coming from Japan - driven more by geopolitical factors than economic ones.
"Beijing officials have already shown their support towards the SAR. But joining RCEP needs approval from all its members, so the Hong Kong government will continue its lobbying efforts," the sources said.
Executive Council member and business sector lawmaker Jeffrey Lam Kin-fung said Hong Kong has good relationships with Asean countries.
"But some individual countries might obstruct Hong Kong's accession due to geopolitical and economic considerations, which is unfair to Hong Kong and other member states," Lam said. He urged RCEP members to enhance cooperation for mutual benefit.
Lau Siu-kai, a consultant to the semi-official Chinese Association of Hong Kong and Macau Studies, did not see any specific reason for Japan to block Hong Kong's RCEP bid, unless it is influenced by the United States.
"None of the RCEP member countries are hostile towards China, so I'm still optimistic Hong Kong will eventually join," Lau said.
In a related development, Chief Executive John Lee Ka-chiu will lead a delegation of businessmen to visit Vietnam, Laos and Cambodia next month - his second trip to Asean countries since taking office in 2022.
The trip is expected to last five to six days, with various company executives invited to join.
michael.shum@singtaonewscorp.com
