Background on Hong Kong and Guangdong

About Hong Kong

Hong Kong plays a remarkable role as a place for multinational firms to access the strengths of the Greater-Pearl River Delta (PRD), China and the Asia Pacific region as a whole. In particular, its banking system, legal set-up, infrastructure and logistics are the top league by any standard. These advantages produce complementary strengths of Hong Kong and the rest of Pan-PRD by inputting professional knowledge, management skills and international experiences.

In 2007, Hong Kong’s GDP grew by 6.3% and reached USD 206.7 billion. The total value of trade in goods was USD 651.5 billion and direct investment inflow was USD 44.9 billion in 2006. It has consistently retained its position as Asia’s second-largest destination for FDI after the Mainland.

Hong Kong is the preferred location in Asia for regional headquarters and offices. As of June 2007, a total of 3,890 overseas companies had regional operations in Hong Kong. This breaks down to 1,246 regional headquarters and 2,644 regional offices.

The implementation of the Closer Economic Partnership Arrangement (CEPA) between the Hong Kong Special Administrative Region and the Central People’s Government further opens up new and exciting opportunities in the Mainland for both local and international companies and individual investors based in Hong Kong in the areas of trade in goods, trade in services, and trade and investment facilitation. It now provides preferential and accelerated market access to 38 key service sectors in the Mainland, as well as offering zero import tariffs on Hong Kong-made goods that meet the rules of origin.

About Guangdong

Guangdong, bordering on Hong Kong and Macao, is located in the southernmost part of Mainland China, facing the South China Sea. Guangdong is at a forward position of China’s opening-up and modernization construction and it also boasts the most prosperous foreign trade and economy in Mainland China, establishing trade ties with over 200 countries and regions in the world.

Enterprises from over 100 countries and regions have come and invested in Guangdong. Guangdong is one of the most important manufacture bases in China, with focus on nine pillar industries, namely, electronics and information, electric appliances and machinery, petrochemical, automobile, pharmaceutical, paper making, textiles & garments, food & beverage, and construction material. Modern service industry, represented by logistics and exhibition, has also embarked on a strong momentum of development.

In Guangzhou, the Chinese Import & Export Commodities Fair, which is held twice a year(spring and autumn) and the China Small and Medium Enterprises Fair(CSMEF) have provided a wide exchange and cooperation platform for foreign investors all over the world. Guangdong has great advantages of daily-improved infrastructure, highly developed telecommunication, well-organized transportation network and custom clearance. The economic laws and IPR protection systems have been instantly improved, and therefore the legislative interest and right of the foreign investors will be better protected. Today, Guangdong has become one of the most favourite destinations for the regional headquarters of the transnational companies and the world industry transfer.