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Strong economic ties with the Mainland, especially with the
Pearl River Delta (PRD), now form one of Hong Kong's fundamental
strengths. The branching out of production processes to the Mainland
in the last two decades has triggered a remarkable transformation
in the economy of both Hong Kong and the PRD and brought about the
development of Hong Kong into an international financial centre
and services hub. The Mainland is Hong Kong's largest trading partner,
accounting for 43 per cent of its total trade in 2003. Hong Kong
accounted for nearly half of the Mainland's foreign direct investment
as at the end of June 2003. Of the 3 200 regional headquarters and
offices established in Hong Kong in mid-year, more than 80 per cent
are responsible for overseeing their Mainland businesses.
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HONG KONG is a leading international trading and services hub as well
as a high value-added manufacturing base. It is widely recognised as one
of the freest economies in the world, and the gateway to the Mainland
market.
In 2003, Hong Kong's total merchandise trade amounted
to $3,548.2 billion. Over 288 000 business establishments in a wide range
of services and manufacturing sectors are operating in Hong Kong, and
the vast majority are small and medium enterprises (SMEs). There is also
a strong presence of international businesses in Hong Kong. At the end
of 2002, Hong Kong had about 9 000 enterprise groups with inward direct
investment.
Hong Kong's continuing economic success owes much
to a simple tax structure and low tax rates, a versatile and industrious
workforce, an excellent infrastructure, free flow of capital and information,
the rule of law, and the Government's firm commitment to free trade and
free enterprise.
The Government sees its task as facilitating commerce
and industry within the framework of a free market. It maintains no tariffs
and no regulatory measures impinging on international trade other than
those required to discharge its international obligations or to protect
health, the environment and access to high technology. The HKSAR also
practises an open and liberal investment policy and actively encourages
inward investment.
The Government's industrial policy aims to promote
industrial development by creating a business-friendly environment and
providing adequate support services. The Government zones land for general
and specialised industrial use. It also maintains and develops advanced
education and training facilities, ensures a modern legislative and regulatory
environment, and supports industry in enhancing productivity and quality
through technology and management improvement. The Government, however,
does not subsidise any specific industries.
With the weight of the Hong Kong economy shifting
towards knowledge-based and higher value-added activities, the Government
puts increasing emphasis on promoting innovation and technological improvement
in industry and business. It aims to strengthen support for technology
development and application, develop a critical mass of fine scientists
and engineers, skilled technicians and venture capitalists, and encourage
the development of a significant cluster of technology-based businesses. |
