Doing Business in Hong Kong
Hong Kong is the ideal platform for doing business in Asia, especially if the target market is mainland China. Hong Kong is a free port, which means that it does not levy any customs tariff and has limited excise duties. In addition, Hong Kong has strong rule of law and property right legislation which makes it a strategic platform for any business seeking to do business in Asia.
Hong Kong has its own common law legal system, which is different from the People’s Republic of China), but also has its own currency. The numerous business opportunities present itself due to the local expertise in finance and marketing, a highly sophisticated infrastructure, and of course, the easy-access to mainland China’s manufacturing base.
Of course Hong Kong too, has to deal with several market challenges such as for example, an increased competition from the mainland. Even though better integration has given Hong Kong easier market access and growth opportunities, the higher costs of Hong Kong has left them somewhat behind in the manufacturing sector. As a result, mainland rivals are becoming more competitive. In addition, foreign firms have a tendency to head directly to mainland China and bypass Hong Kong.
That being said, Hong Kong is home to a large number of procurement agents and purchasing offices. Agents and distributors tend to include Macau and Southern China in their coverage territory and often have extensive networks to other major regions in mainland China. Hence, Hong Kong is an area that should not be overlooked if you are trying to bridge the gap between your local office and China.
Are you already doing business in Hong Kong?