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Chapter 5
Commerce and Industry
Hong Kong has all the essentials that help business to flourish: low tax rates, first-class infrastructure, an effective legal system, free flow of capital and information. In addition, it has the most advantageous gateway to the mainland of China, one of the world's fastest growing economies.
Hong Kong is a leading international trading and services hub as well as a high value-added manufacturing base. It is recognised as one of the freest economies in the world, and the most strategic gateway to the vast Mainland market.
Hong Kong's continuing economic success owes much to a simple tax structure and low tax rates, a versatile and industrious workforce, excellent infrastructure, free flow of capital and information, the rule of law, and the Government's firm commitment to free trade.
The Government sees its task as facilitating commerce and industry within the framework of a free market. It does not impose tariffs. Regulatory measures on international trade are kept to the minimum. Hong Kong also adopts an open and liberal investment policy and actively encourages inward investment.
The Government promotes economic development by creating a business-friendly environment and providing adequate support services and infrastructure. It promotes innovation and technological improvement to match Hong Kong economic restructuring towards knowledge-based and high value-added activities. It continually strengthens support for technology development and application, promotes the wider use of design, develops a critical mass of fine scientists, engineers and designers, skilled technicians etc., and encourages the development of a significant cluster of innovative and technology-based businesses.
Merchandise Trade Performance
Hong Kong's external trade dropped significantly in 2009 amid the global financial tsunami. Total merchandise trade decreased by 11.8 per cent compared with 2008's $5,161.4 billion. Domestic exports fell by 36.4 per cent to $57.7 billion