managing your china business how hong kong + cepa make it easier alan wong deputy executive director...
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Managing your China business
How Hong Kong + Cepa make it easier
Alan WongDeputy Executive Director
Hong Kong Trade Development Council
Managing your China business
1. The China appeal
2. Hong Kong’s role
3. Using Cepa to succeed
4. How TDC can help
The China appeal!
• GDP up 9% • Exports up 35% • Imports up 40%• FDI up 40%
• Huge, diverse country• Unfamiliar regulations• Need for customisation• Risk issues for SMEs
Hong Kong’s role
• “ Hong Kong is an ideal gateway for New Zealand companies to tap enormous business opportunities in the Chinese mainland market”
Merv Stark, Senior Trade Commissioner,
North Asia
1. Favourable business environment
2. Financial / logistics centre
3. China access / experience
Hong Kong’s role
Hong Kong + Pearl River Delta
*Professor Michael Enright, PhD (Harvard)
“Fastest growing region of the fastest growing large economy”*
Sourcing from China
Hong Kong =
• 60,000+ companies
• Finance + logistics
• International experience
PRD =
• Low, stable labour costs
• World class factories
• Top manufacturing and export region
Hong Kong + Pearl River Delta
Average GDP growth (%)
‘97 – ‘03
Exports
US$ billion
‘02
Shenzhen 16.7 62.9
Dongguan 18.2 28
Economic and export strength
Source: Statistical Yearbook of Guangdong and Shanghai, 2003
Shanghai 10.9 48.5
Pearl River Delta – Yangtze River Delta
Selling to China:
Hong Kong =
• International experience
• Finance/logistics/IPR
• Trend-setting image
PRD =
• China’s wealthiest region
• Growing consumer base
• Nationwide distribution
Hong Kong + Pearl River Delta
GDP per capita,
2002 (US$)
Shenzhen 5,604
Dongguan 5,244
Source: Statistical Yearbook of Guangdong and Shanghai, 2002
Shanghai 4,911
Buying power!
Pearl River Delta – Yangtze River Delta
Using Cepa to succeed
• Free trade deal
• Preferential access to China
• Covers goods and services
• Better than WTO!
• Any nationality eligible
What benefits?• Duty-free exports to China• Covers 90% of HK exports
Who is eligible? • Products “Made in Hong Kong” • No need for office in Hong Kong
Using Cepa to succeedImplications for manufacturers
What benefits?• Earlier access • Lower entry criteria• Wholly-owned operations
Who qualifies? • Incorporated in Hong Kong• In business for 3-5 years• Liable for profits tax • 50% local staff
Using Cepa to succeedImplications for service companies
How HKTDC can help
• Business matching
• Trade Fairs
• Market intelligence
How TDC can helpBusiness matching
“Best trade fairs in Asia”• 18 international fairs
• Popular with Chinese buyers/exhibitors• 30,000 exhibitors; 350,000 buyers
How TDC can helpTrade fairs
How TDC can helpMarket intelligence
Contact us!
Sydney OfficeLevel 3, Hong Kong House, 80 Druitt Street
Tel: +61-2-92618911Fax: +61-2-92618966