Hong Kong and Zhaoqing: Your Winning Formula for Doing Business in China

More than 220 US business executives eager to find out how best to set up their business operations in Hong Kong and China had the chance to hear first hand how to do it at a seminar in Chicago (Chicago time June 9).

The seminar, Hong Kong and Zhaoqing: Your Winning Formula in China, was jointly organised by Hong Kong's investment promotion agency, Invest Hong Kong, and the Zhaoqing Municipal Government.

The seminar featured case studies and practical tips showing US companies how they could successfully build their businesses in China and capitalise on the massive growth in the region. Delegates learnt how their companies can benefit from establishing their regional headquarters in Hong Kong to oversee their manufacturing and business operations in the Greater Pearl River Delta (GPRD) region and Mainland China. This winning formula links the advantages of competitive manufacturing and sourcing in the GPRD region, alongside the international business environment of Hong Kong, Asia's most business-friendly city.

The Hong Kong and Zhaoqing delegations were led by the Director-General of Invest Hong Kong, Mr Mike Rowse, and the Mayor of Zhaoqing Municipal Government, Mr Yang Haoming.

Mr Rowse said: "Hong Kong is a natural entry point for US companies to start their businesses in Asia, and a logical place from which to oversee their Asia-wide operations. The US is Hong Kong's second largest trading partner after Mainland China and one of the largest sources of foreign direct investment. US direct investment in Hong Kong amounted to US$35.6 billion in 2006. More than 1,200 US companies are based in our city with about 70% of these businesses being regional headquarters or offices."  

He continued: "There is a strong presence of professional services with the leading accounting firms, law firms and consultancies all having offices here. Large US financial institutions, insurance companies and investment banks also have a significant presence in Hong Kong. Many of them are increasingly engaged in business with Mainland China from their base in Hong Kong. As the Mainland China economy continues to flourish it offers new opportunities for Hong Kong-based companies to successfully grow their international businesses."
  
Mr Yang said, "Zhaoqing is located in the mid-western part of Guangdong Province, only 100 kilometres away from Guangzhou. It is within one hour's drive of greater Guangzhou and is only three hours to Hong Kong and Macau. Our city has become a popular destination for foreign investment, as our outward looking economy has been developing rapidly in recent years."

"The US and Zhaoqing have strong ties in various areas including business, tourism, education and R&D. The total trade between US and Zhaoqing was US$708 million in 2007. At present, there are over 1,300 foreign-invested enterprises in Zhaoqing, including 59 companies from the US. They play an important role in helping Zhaoqing become a modern industrial city. The city plans to focus on metal processing, renewable energy, equipment manufacturing with an emphasis on auto parts, special equipment, general machinery, electronic information technology and biopharmaceuticals. There are abundant opportunities for US investors in these areas," Mr Yang added.

The seminar programme included case study presentations by Mr Gary Clinton, recently retired Managing Director and Head of Global Relationship Banking, Citigroup Asia Pacific, and Mr Arnold Berney, Corporate Vice President of Leggett & Platt Inc. Mr Peter Guang Chen, Partner from Deloitte Tax LP shared practical tips with US companies on investing in Hong Kong and China. Mr Richard Tam, Director of Hong Kong Trade Development Council in Chicago, explained the organisation's services to help companies expand their China Business. Finally, Mr Tang Haizhou, Director of the Bureau of Foreign Trade and Economic Cooperation of Zhaoqing City, briefed participants on services provided by the Bureau.

Ends/Tuesday, June 10, 2008