China Trade – Doing Business in the PRC ~ Hong Kong is the link

Doing business in the PRC – Hong Kong is the link



Hong Kong Trade Development council publish a text book on “guide to Doing Business in China”, The real world is more sophisticated. Investors usually use Hong Kong as the link.


Hong Kong enjoys:

  • Free entry for designated service industryChina-trade-2
  • Zero tariff for Hong Kong products
  • Hong Kong has a pool of China trade talent, she has the experience and knowledge in China trade
  • Hong Kong and China has double tax avoidance treaty
  • Hong Kong itself is a tax heaven
  • Hong Kong has a special trade arrangement with mainland China, CEPA (Closer Economic Partnership Arrangement 2004), it is an economic arrangement between the mainland government and Hong Kong government by which Hong Kong enjoy more favourable economic terms and policies than other overseas regions/countries.



Hence Hong Kong is the link

Since 1995, the Heritage Foundation’s Index of Economic Freedom found Hong Kong to be the freest economy in the world. The Fraser Institute ranked Hong Kong as the freest economic in the world since 1970 except 1980.


What made Hong Kong the freest economy is Hong Kong economic infrastructure, free trade policy, free monetary policy and no exchange control.


China-trade-4Hong Kong is part of China, doing business in Hong Kong is doing business in China, doing business in the freest economy in China. From Hong Kong, you can radiate to other part of China.