E-government Since April 1998, the government has adopted an active outsourcing strategy. In 2006-07, about 90% of government IT projects was outsourced to a value of HK $845 million.  The government has also taken the lead in promoting e-commerce with the launch of the Electronic Service Delivery Scheme in 2000. More than 1,200 government electronic services can be accessed online. High-growth Mainland Market Industry analysts predict that the IT market in China will grow at a compound annual growth rate of 13.1% from 2004 to 2009 and reach US$50.83 billion by then.

Hong Kong-based companies will have distinct advantages in exploiting the huge potential in the Mainland.

CEPA

The Closer Economic Partnership Arrangement (CEPA), signed in June 2003 by the Central People’s Government and the Government of the HKSAR opens up new and exciting opportunities in the Mainland for both local and international companies. According to CEPA and its Supplements, the Mainland has agreed to provide preferential treatment to Hong Kong service suppliers in 38 service areas including IT as well as applying zero import tariffs for Hong Kong origin products in 1,047 Mainland tariff codes. Under Supplement V to the CEPA, signed in 2008, the Mainland will introduce 29 liberalisation measures covering 17 services sectors . In banking, any Mainland-incorporated banking institution established by a Hong Kong bank will be allowed to locate its data centre in Hong Kong, subject to fulfilment of certain requirements.

Computer and related services will enjoy increased access to the Mainland market in addition to existing liberalisation measures already in place. All the services liberalisation measures will come into force on January 1, 2009.

Future Opportunities

Hong Kong-based companies will have distinct advantages in exploiting the huge potential in the Mainland where ambitious goals have been set for advancements in the areas of open source software, advanced wireless technologies and RFID. Hong Kong serves as a conduit to the Mainland market with established channels of cooperation in areas of innovation, technology and informatisation. Locally, the HKSAR Government's outsourcing initiative and the continued expansion of e-commerce will provide substantial opportunities.

Why you need to be in Hong Kong

Voted 1st by the Heritage Foundation and The Cato Institute as the world's freest economy and by the Milken Institute for capital raising

Hong Kong has a mature, proven and transparent legal system based on English Common Law

Unrestricted foreign investment and repatriation of capital

Strong IP protection

Excellent telecommunication infrastructure

Strategic government-driven Digital 21 IT strategy

Bilingual capability

Close linkage with the Mainland

What the decision makers say...

"EMC picked Hong Kong for its Asia Pacific and Japan Supply Chain and Logistics Centre because of its location, efficient import structure, robust transportation and logistics infrastructure, as well as a deep talent pool of supply chain professionals. Combined with Hong Kong's first class telecommunications infrastructure and well connected international airport, our investments in Hong Kong help us stay close to the rest of the region, particularly China, one of our fastest growing markets."

Steven Leonard
President, Asia Pacific & Japan
EMC Corporation