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
A rapid look at the hong kong trade and development centre’s trade statistics will show that the majority of the HK SAR’s exports is acyually re-exports of imported products, from china and abroad. In fact, total exports of hong kong were about U.S. $490 billon in 2012, where re-export account for U.S. $432 billon. China, unsurprisingly, is the main supplier of imports, even if many countries take benefit of the free-trade regime. In the specific case of china, this has been made even easier since the signature of CEPA, closer economic partnership arrangement. The CEPA treaty, signed in 2004 and first ever between the two entities, is now a building block of the progressively closer integration of hong kong’s economy with the chinese mainland, not only in the traditional manufacturing and logistics sectors, but in services too, which are generally off-limits to foreign companies. Thanks to CEPA’s provisions, hong kong suppliers are enjoying preferential treatment when entering into the mainland market in various service areas, and can also have professional titles and qualifications recognized in china
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 A rapid look at the hong kong trade and development centre’s trade statistics will show that the majority of the HK SAR’s exports is acyually re-exports of imported products, from china and abroad. In fact, total exports of hong kong were about U.S. $490 billon in 2012, where re-export account for U.S. $432 billon. China, unsurprisingly, is the main supplier of imports, even if many countries take benefit of the free-trade regime. In the specific case of china, this has been made even easier since the signature of CEPA, closer economic partnership arrangement. The CEPA treaty, signed in 2004 and first ever between the two entities, is now a building block of the progressively closer integration of hong kong’s economy with the chinese mainland, not only in the traditional manufacturing and logistics sectors, but in services too, which are generally off-limits to foreign companies. Thanks to CEPA’s provisions, hong kong suppliers are enjoying preferential treatment when entering into the mainland market in various service areas, and can also have professional titles and qualifications recognized in china
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