a former british territory handed over to china in 1997, but still a preserving a fairly autonomous and independent economy (according to the formula, "one country, two systems"), and one of the principal export-led growth asian economies, the small hong kong sar (special administrative region) has a central place in the east asian production and distribution channel as one of the leading rdcs (regional distribution centers) together with shanghai, shenzhen and Singapore
hong kong is the word’s 10th largest trading economy, the second in asia as recipient of fdis after china and often the first port of call for western companies approaching Asian markets, both to export and for sourcing. A very sophisticated service economy more than anything else –services account for more than 90 percent in terms of contribution –hong kong’s gdp is based on four main sectors, trading and logistics (25.5 percent of gdp in 2011), tourism (4.5 percent), financial services (16.1 percent), and professional services of various kinds (12.4 percent)
what makes hong kong so attractive ? history aside, there are many important factors which are of key relevance when a company decides to get global and enter Asian markets, now acknowledged as the engines of world growth.
First of all, hong kong is a free trade zone, in the sense that all products, with the exception of specific items, like tobacco and spirits, enjoy zero taxes in imports and export. This has allowed a series of advantages, such as the offshoring of manufacturing to the neighboring Guangdong province in china since the 1970s, and them importing outputs to hong kong for packaging, advertising and further re-export