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Hong Kong, One of China's Vital Business Links

Written by: Editor

Hong-Kong-One-of-Chinas-Vital-Business-Links.jpgTwenty years after it was handed over once again to China as a Special Administrative Region, Hong Kong remains one of its vital business links. Despite their different evolution in terms of business culture or foreign direct investment influx, the two jurisdictions remain connected and their closeness is a strong point for many foreign investors. Our lawyers in Hong Kong can give you complete information on the existing trade and tax deals between the two jurisdictions and how they can be beneficial for investors.

The Hong Kong – China relations

Will Hong Kong retain its importance as a gateway to the Mainland as China develops and opens up to foreign investments? The two jurisdictions are collaborating and competing at the same time but an equilibrium seems to be constant. Although Hong Kong’s port was ranked lower than two Chinese ports last year, the Special Administrative Region will retain its importance to the Mainland, analysts believe, because of its free port status and the rule of law.
According to the Hong Kong Trade Development Council, the city remains a key investment hub. The main reason is the low taxation regime, however, experts also point out that investors will choose to set up their company in Hong Kong rather than China because the city has a more stable investment environment and an independent legal system. Companies in some business fields, like in the manufacturing sector, choose to open their headquarters in Hong Kong but use the Mainland to purchase the materials needed for their trade or to open factories. 
Our lawyers in Hong Kong can give you more details on investing in Hong Kong and the conditions to open a company here.

Hong Kong’s importance for China

Hong Kong is a cosmopolitan city that remains an English-speaking city within the Asian region, and the closest with this attributes to China.
China could use Hong Kong’s long established status as a financial hub, experts believe. The city could become indispensable to China on a financial level if the Chinese would choose to use Hong Kong as their top offshore Yuan trading center.
Hong Kong is also one of the top countries in the world in the global competitiveness charts; however, experts agree that the city must keep up with the changes that are currently unfolding worldwide. 
For more details on investments in the Special Administrative Region, you can contact our law firm in Hong Kong.  


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