ENG-2005 — Page 137

Chapter 5

Commerce and Industry

Hong Kong is among the best places to do business and it has the hard evidence to prove it. It has been ranked as the freest economy in the world, the world's 11th largest trading entity in terms of value of merchandise trade, the second largest recipient of foreign direct investment in Asia and one of the most competitive economies in Asia.

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.

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 and free enterprise.

The Government sees its task as facilitating commerce and industry within the framework of a free market. It does not impose tariffs or regulatory measures on international trade other than those required to discharge its international obligations or to protect health, the environment and access to high technology. Hong Kong also adopts 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. It has changed the emphasis in its industrial support to the promotion of innovation and technological improvement to match Hong Kong industry's shift towards knowledge-based and high value-added activities. 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.

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