Dr. Alan K M Au Associate Professor and Marketing Strand Leader School of Business & Adminstration, The Open University of Hong Kong

For its impact on higher education, we may study the benefits Hong Kong will receive when China opens up her business sectors to other countries.

According to Dr Alan K M Au, Associate Professor and Marketing Strand Leader of School of Business & Administration at the Open University of Hong Kong, the opening of large sectors of the Chinese economy will mean huge potentials in areas where Hong Kong has a "first-mover" advantage.

Dr Au says that Hong Kong has been a very successful services-based economy since 1980s, the best among the four Asian dragons. What Hong Kong needs to do is to further develop its services sectors, not venture into unknown territory where it does not have competitive advantages.

With the Hong Kong economy gradually being absorbed by South China, it has been suggested that the first-mover advantage enjoyed by Hong Kong's services sectors will enable Hong Kong to better integrate with the region; thereby offering huge opportunities for Hong Kong people who are willing to work in China as local residents but not as expatriates, and prosper together with the phenomenal growth of the Chinese economy.

Apparently, the potential in telecommunications, financial services, distribution industries, professional services will provide huge opportunities for knowledge and skilled workers. Therefore, if one wants to be among the winners, continuously updating and upgrading one's knowledge will be essential.

Fortunately for working adults living in Hong Kong, the distance learning sector is very mature and offers a wide variety of choice for people who are prepared to invest in themselves.

For example, in distribution industries, China will allow a 49% foreign equity for distribution of video and sound recording equipment, majority foreign ownership of cinemas, and direct distribution of goods and services, such as IT and pharmaceuticals, to customers.

In the past, logistics training at the operational level was provided in Hong Kong. This included courses on warehousing, supply and purchasing operations.

To meet future needs, courses at a strategic level should be provided. Those who are interested in this area can find logistics degree programmes offered by Australian universities in Hong Kong.

Likewise, in financial services, foreign banks will be allowed to undertake currency business in China. In opening up the local banking industry, China needs professionals in risk management, retail banking and investment banking, all of which require experienced personnel to handle.

In the telecommunications industries, China will allow foreign investment in all telecom sectors as well as immediate access to its key markets for foreign service providers and suppliers.

In addition, foreign firms will be allowed to provide professional services, such as accountancy, taxation and consultancy, through joint ventures with majority foreign ownership, while wholly-foreign ownership will be allowed after five years.

Again, the opening of more sectors in the economy will mean more competition and hence, offering huge potentials to providers of marketing services such as advertising and marketing research.

Again, in order to compete for foreign capital, Chinese corporations will need to improve their management efficiency and effectiveness, which in turn, will create great demand for professionals in areas like corporate governance, accounting and finance, market, information technology and general management.

For one to work in China, education and professional qualification are necessary. It is advisable to attend courses on various aspects of China in order to be familiar with, for example, the way Chinese mainlanders think and the culture of Chinese companies.

As for management, rather than taking a general MBA, it is better to sit for a specialized Master degree in, say, corporate administration or corporate finance so as to be better qualified than other managers.

For professional qualification, it is not difficult to take professional exams from professional bodies such as the Hong Kong Association of Banks.

Hong Kong, because of its close proximity to China, shares a similar culture with the mainland, and therefore possesses obvious advantages following China's entry into the WTO. Hong Kong people may not lose their competitiveness. The key is how to turn all these new changes into opportunities.

Taken from Career Times 2002/02/01