Hong Kong’s proximity to, and close and unique relationship with, Mainland China, has made it the gateway to Mainland China for business for more than 150 years. Hong Kong’s business influence across China is extensive and deep. Hong Kong provides almost half of the Mainland’s inward investment, while the Mainland is the city’s largest trading partner.
Hong Kong and Pearl River Delta a winning business strategy
Hong Kong is the key city on China’s southern coast and adjacent to China’s biggest and most productive manufacturing region – the Pearl River Delta, known as the factory of the world. Thousands of overseas companies involved in China trade have established their beachheads in Hong Kong because of the city’s strategic location and international business environment. It’s a win-win combination: Hong Kong provides the capital, management skills, technology, market knowledge, mature business infrastructure and access to international markets. Cities in the Pearl River Delta provide world-class, low-cost manufacturing, access to the world’s third biggest economy, (predicted to be the world’s second biggest economy in 2010), and the world’s biggest single market of 1.3 billion consumers. To minimise their business risk, international firms tend to place their highest-value activities in Hong Kong including international corporate, management, procurement, distribution, finance, information and professional services.
Pearl River Delta the fastest growing region of China
The Pearl River Delta is the main base for China’s low-cost manufacturing and has emerged as a manufacturing platform of global importance. The Pearl River Delta accounts for 10 per cent of China’s gross domestic product and about 30 per cent of China’s exports. It is the world leader in the production of electronic goods, electrical products, electrical and electronic components, watches and clocks, toys, garments and textiles, plastic products and a range of other goods.
Pearl River Delta to become Asia Pacific’s ‘most vigorous’ economic area
Recognising the importance of the Greater Pearl River Delta, the Chinese government has announced an ambitious 12 year plan to move the Pearl River Delta up the value chain and forge even closer links and co-operation with Hong Kong and Macau. The plan sets out how the region will transform to focus on innovation, encompassing high-end manufacturing and high-technology industries such as automotive, steel, petrochemical and shipbuilding as well as modern services and finance. By 2020, 100 state laboratories for engineering innovation and research and development will be established and at least 10 China-based multinationals with annual sales of US$20 billion will be developed.
