Transcript How Hong Kong + Cepa make it easier

Managing your China business
How Hong Kong + Cepa make it easier
Alan Wong
Deputy 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!
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GDP up 9%
Exports up 35%
Imports up 40%
FDI up 40%
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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
Hong Kong’s role
1. Favourable business environment
2. Financial / logistics centre
3. China access / experience
Hong Kong + Pearl River Delta
“Fastest growing region of the fastest growing large economy”*
*Professor Michael Enright, PhD (Harvard)
Hong Kong + Pearl River Delta
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
Pearl River Delta – Yangtze River Delta
Economic and export strength
Average GDP
growth (%)
‘97 – ‘03
Exports
US$ billion
‘02
Shenzhen
16.7
62.9
Dongguan
18.2
28
Shanghai
10.9
48.5
Source: Statistical Yearbook of Guangdong and Shanghai, 2003
Hong Kong + Pearl 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
Pearl River Delta – Yangtze River Delta
Buying power!
GDP per capita,
2002 (US$)
Shenzhen
5,604
Dongguan
5,244
Shanghai
4,911
Source: Statistical Yearbook of Guangdong and Shanghai, 2002
Using Cepa to succeed
• Free trade deal
• Preferential access to China
• Covers goods and services
• Better than WTO!
• Any nationality eligible
Using Cepa to succeed
Implications for manufacturers
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 succeed
Implications for service companies
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
How HKTDC can help
• Business matching
• Trade Fairs
• Market intelligence
How TDC can help
Business matching
How TDC can help
Trade fairs
“Best trade fairs in Asia”
• 18 international fairs
• Popular with Chinese buyers/exhibitors
• 30,000 exhibitors; 350,000 buyers
How TDC can help
Market intelligence
Contact us!
Sydney Office
Level 3, Hong Kong House, 80 Druitt Street
Tel: +61-2-92618911
Fax: +61-2-92618966
[email protected]