HONG KONG: Asia’s Premier International City
As a new millennium begins, new opportunities in the Asia-Pacific region will present themselves in a part of the world that contains half the world’s population. Strategically located in the heart of that area is Hong Kong which has capitalized on its position at the crossroads of East and West to become the world’s 9th largest merchandise trading entity. Today, Hong Kong’s per capita GDP is among the highest in Asia and is higher than many Western nations.
Despite the setbacks and financial turmoil of the late 1990’s, Asian countries are rebuilding and restructuring their economies and laying the foundations for a return to sustainable and equitable growth in the new century. Hong Kong, with its constantly changing skyline, has mirrored the city’s evolution as a global, financial and communications hub. Its legendary free market approach, robust legal system, outstanding infrastructure and world class financial services sectors have combined to make Hong Kong the ideal base from which to tap into the growing markets of mainland China and greater Asia.
Hong Kong, long ago, established its credentials as a champion of free trade with an open door policy and inward and outward investments, no trading restrictions on foreign exchange, gold or silver, a freely convertible and stable currency, a duty and tariff-free port and one of the world’s most business-friendly tax systems, where companies pay no more than 16% profits tax and individuals pay no more than 15% salaries tax. These factors have acted as a magnet for international companies wishing to trade, invest and do business in Asia. Hong Kong is already the location of choice for more than 2,400 international corporations which have established a regional headquarters or office in the city. Over the past five years, Hong Kong was rated the world’s freest economy by the Washington-based Heritage Foundation and the world’s second most competitive economy by the World Economic Forum.
Today, Hong Kong is classified as an advanced economy due mainly to the quantum shift of its economic make-up from manufacturing to services over the past three decades. During that time, Hong Kong has transformed itself from an economy which makes things into one that makes things happen.
It is now among the world’s top 10 exporters of services with more than 80% of its GDP and about 80% of its jobs generated by a services sector covering many diverse areas including finance and banking, wholesale and retail, hotels and catering, tourism, insurance, real estate, transportation and communications. Hong Kong is one of Asia’s premier markets for professional services which provide important and essential know-how for international business in areas such as accounting and auditing, bookkeeping, legal services and business management and consultancy.
Because of Hong Kong’s strategic location as the gateway to China, this market offers significant potential and no other business center can tap into that potential as efficiently and profitably as Hong Kong. A World Bank report predicts that by 2020, China will be the world’s second-largest economy after the US. With a population of more than 1.3 billion, an increasingly consumer-conscious market and an average annual growth of more than 8% over the past decade, it is easy to see the prospects for business and trade. Since China launched its open door policy in 1998, Hong Kong has played the pivotal role as a conduit for trade and investment in the Mainland. That role has been enhanced since Hong Kong’s reunification on July 1, 1997 when Hong Kong became a Special Administrative Region (SAR) of China.
Hong Kong, being a forward-looking city, is determined to remain at the forefront of modern efficient international cities. This requires long-term vision to insure Hong Kong builds on its traditional role and strengths and also develops new areas of expertise and growth.
Helping to achieve these goals is the Hong Kong Trade Development Council (TDC), the SAR’s statutory body responsible for promoting and expanding Hong Kong’s trade with the world and for promoting Hong Kong’s international image as a business partner that is committed to free trade and a level playing field. The TDC has a worldwide network of 50 offices in 34 countries and regions that effectively serves as the international marketing arm for Hong Kong manufacturers and service providers. Its offices in the US include those in New York, Miami, Chicago and Los Angeles.
Among the ways the Council reaches out to its trading partners is through its more than 350 promotional events worldwide each year; its 20 international trade fairs and exhibitions in Hong Kong that attract 7,000 exhibitors and more than 1 million visitors each year; its computerized trade inquiry service as well as products which help users find the right supplier; more than 20 Hong Kong product and service magazines with a global circulation of 2.3 million; and high-level missions both inward and outward to strengthen Hong Kong’s economic ties with its key trading partners.
The Council also organizes and participates in business seminars and conferences at international, regional and local levels and acts as the coordinator for 28 Hong Kong business associations in 24 countries and territories with about 7,000 members in key overseas centers.
Today, Hong Kong remains an open pluralistic society and an international, financial and trading city with its freedoms and the rule of law guaranteed by the Basic Law with China – Hong Kong’s contract for continuity.
Lou Epstein is the Press Officer of the Hong Kong Trade Development Council.
