Doing Business in China For Dummies®

Weighing Hong Kong’s Offerings

Hong Kong is connected to the mainland, with its border at the southern Chinese boomtown of Shenzhen in Guangdong province. Hong Kong used to be the business and investment gateway to China, often serving as a transit point for mainland-made goods. As China has opened up to foreign direct investment (FDI), Hong Kong’s role has evolved.

Today, Hong Kong is a major financial and services hub for China as well as all of East Asia. It’s also the single largest foreign direct investor on the mainland. Hong Kong has its own vibrant economy, with real estate, banking, and retail, among other industries, playing major roles. Luckily for you, Hong Kong may be able to save you time and hassle.

Hong Kong’s special status: The SAR (it’s not something you catch)

Until 1997, Hong Kong was a British colony. In 1997, the British returned Hong Kong to China but only after China pledged to retain Hong Kong’s capitalist system for at least 50 years. Hong Kong is now officially called the Hong Kong Special Administrative Region (SAR) of the People’s Republic of China.

Hong Kong has its own quasi-constitution called the Basic Law. Basic Law provides for a legal system that’s different and much more open than the mainland’s. Hong Kong has its own laws and courts, currency (the Hong Kong dollar — see Chapter 10), and customs and immigration policies.

Decolonization: The Brits give back to China Hong Kong consists of two main land masses: the Kowloon Peninsula, which connects ...