B. Advantages of using Hong Kong as a gateway to China

There are approximately 1,000 U.S. companies in Hong Kong and more than 25% of U.S. investment in Asia Pacific (excluding Japan, New Zealand and Australia) is in Hong Kong. U.S. investment is valued at $11.4 billion in 1992 dollars. Companies including Motorola, Dow Chemical and Tektronix have been operating successfully in Hong Kong and the advantages of setting up an office in Hong Kong are as follows:

1. There is no discrimination against overseas investors, or special conditions attached to foreign investment,

2. Government economic policies are stable (until 1997) and are based upon philosophy of minimum interference with market forces;

3. There is no exchange control or restriction on remittance of capital and profits overseas"

4. Corporate income tax rate is 16.5%. An initial 60% is allowed for capital depreciation on plant and machinery, and losses can be carried forward indefinitely;

5. Hong Kong is a free port. Controls on import/exports and re-exports are determined only be health, safety, and/or security considerations;

6. Hong Kong is strategically located at the crossroads of Asia and serves as a bridge between China and the rest of the world',

7. Hong Kong has a fine natural harbor, the largest container terminal in the world, a modern international airport, and excellent telecommunications and post facilities,

8. Hong Kong is a reputable international financial center and offers banking services of the highest standard,

9. Hong Kong's manufacturing sector is well-developed and supported by a network of industries, technical services, and institutions;

10. There is a good supply of high-quality managers, engineers, technicians, and professionals;

1 The labor force is intelligent, hard-working, versatile, and flexible. In addition, industrial relations are excellent and productivity is high;

12. The Government maintains prudent fiscal policies. The currency is backed by substantial reserves and is linked to the US dollar,

13. Hong Kong enforces equitable business laws, including those protect intellectual property.

[ Up ] [ Next ] 

Copyright (c)1999 theshipping.com  All rights reserved.