General information to assist you during your visit to Hong Kong
KOREA KEY INFORMATION
2008/02/17 00:57 | by 
The Hong Kong economy depends on trade. Trade in 2002 was 2.5 times Hong Kong’s GDP, an indication that Hong Kong remains one of the freest economies in the world. A service-based economy, Hong Kong enjoyed a US$21 billion services trade surplus in 2002, versus a US$13 billion merchandise trade deficit.
The United States is Hong Kong’s second-largest trading partner, and Hong Kong is the United States’ thirteenth-largest market for exports. According to U.S. government statistics, U.S. goods exports to Hong Kong were US$13 billion in 2002, while U.S. goods imports from Hong Kong were US$9.6 billion. U.S. exports of commercial services to Hong Kong were US$3.4 billion in 2001 (latest data available) and U.S. imports of commercial services from Hong Kong were US$3.7 billion. Sales of services in Hong Kong by majority U.S. –owned affiliates were US$9 billion in 2000 (latest data available), while sales of services in the United States by majority Hong Kong-owned firms were US$1.3 billion.
Hong Kong is on the Southeast coast of China, 70 miles from the Tropic of Cancer. With an area of 404 square miles, Hong Kong is about four times the size of Washington, D.C. The territory consists of Hong Kong Island, the Kowloon Peninsula, Stonecutter's Island, the New Territories, and various surrounding islands.
The territory, which dates from 1841, was established officially when China ceded Hong Kong Island to Great Britain in the Treaty of Nanking in 1842. The Kowloon Peninsula and Stonecutters' Island were added in 1860 with the signing of the Treaty of Peking. Britain obtained a 99-year lease on the remainder, called the New Territories, in 1898.
On July 1, 1997, Hong Kong reverted to Chinese sovereignty after over 150 years under British rule. The Sino-British Joint Declaration, signed in 1984, and the Basic Law, passed by China's National People's Congress in 1990, from the legal basis for China's "One Country, Two Systems" guarantees for the Hong Kong Special Administrative Region (SAR) of China. Hong Kong under Chinese sovereignty has remained one of the freest cities in Asia, with the Hong Kong Government committed to advancing Hong Kong's distinct way of life and the PRC Government generally respecting its commitments regarding Hong Kong's high degree of autonomy which apply in all areas except in matters relating to foreign affairs and defense.
American business presence in Hong Kong is formidable and demonstrates the attraction of doing business in Hong Kong. There are over 1,100 U.S. firms in Hong Kong, including over 600 regional operations, employing 250,000 people. It is estimated that there are up to 50,000 American citizens residing in Hong Kong. According to U.S. government statistics, U.S. direct investment in Hong Kong totaled almost US$30 billion by year-end 2002 (based on historical costs), making the United States one of Hong Kong’s largest investors, along with the United Kingdom, China, and Japan.
Since China’s accession to the World Trade Organization (WTO) Hong Kong has been well positioned to play a key role for U.S. firms wishing to expand exports to one of the world’s fastest-growing markets. Hong Kong is a trading hub for China and the region: its trading firms are experts at promoting U.S. products and services in China. Similarities in linguistic and cultural traditions have enabled Hong Kong traders to maximize opportunities for U.S. firms, and in particular for small and medium-sized enterprises and first-time exporters. The Closer Economic Partnership Arrangement (CEPA), a free-trade agreement between China and Hong Kong covering various sectors will take effect in January 2004. This agreement will likely further strengthen Hong Kong’s position as the leading gateway to the China market.
With a per-capita GDP of about US$24,000 and as the gateway port for china’s richest regions, Hong Kong’s market offers outstanding prospects for a full range of U.S. products and services. The Hong Kong government’s focus on the environment and its continued spending on infrastructure projects also provide opportunities for U.S. firms. Other attractive sectors for U.S. firms include the medical and pharmaceutical sectors, information technology and telecommunication products, high-value food and consumer goods and safety products.a
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