h1

use Hong Kong as an entre into China?

Tuesday 7 December, 2010

I attended this presentation organized by the Organization of Women in Trade (OWIT) HONG KONG – YOUR RISK-MANAGER AND PARTNER FOR SUCCESS IN CHINA featuring Bridget Lee, Director of the Hong Kong Trade Development Center (HKTDC) in Chicago.  Here’s what she had to say:

China has been little affected by the financial crisis & is moving towards higher value-added products, i.e. from electronics to i-phones.  The emphasis is switching from imports to exports, but are now stuck between fire (Asia) & ice (Europe & US) in terms of growth.  In 1978, China was #28 in the world in trade, but is projected to overtake the US by 2020.  China has 338M internet users today, but the market is not saturated yet.  Only 40% of China’s economy is driven by the service sector, so they need accountants, engineers, lawyers, logistics experts, etc., to increase that to 50% by 2020.  Overseas SME’s interested in doing business in China are concerned about transparency.

Hong Kong has many advantages to working in China.  Services is 90% of its GDP, with 8.2% growth, only a 15% salary tax & 16.3% corporate tax.  HK was #1 in IPO’s in 2009.  524 mainland companies are listed on HK exchanges which comprise 58% of capitalization in those markets.  HK-China relations still adhere to the 1 country-2 systems approach, including a separate customs territory.  The Cato Institute rated HK’s economy as the most free in the world.  HK has legal advantages as well, acting as an international arbitration center for 140 domain name cases.  50K companies employ 9M employees-300K SME’s employ the rest.  HK is not surprisingly the largest recipient (63%) of foreign capital from China.  HK partners can be leveraged to work with Chinese manufacturers.  HK is a great place for clean/environmental technologies, to commercialize technologies, protect intellectual property rights, & sell/source technology.

The HKTDC has 800 on staff in 40 offices worldwide & has had an office in Chicago for 40 years.  Contact HKTDC if you are interested in buying from or selling to companies in Hong Kong.   They promote 200 trade fairs annually.  Bridget’s presentation contained a lot more information.  Contact me if you would like me to search for something specific.

I’ve been to Hong Kong, & it’s a pretty wild & crazy place.  There are few places in the world that I’ve visited that have the same buzz as HK.  My only general suggestion is get to know whom you’re doing business with well.  As much as anyplace else, finding someone you can trust is key, & it’s tough to sift through all of the myriad options in Hong Kong.

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: