ENG-2011 — Page 139

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, and the free flow of capital and information. It is also an important gateway to the mainland of China, one of the world's fastest growing economies.

Hong Kong is a leading international trading and services centre 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 proactively encourages inward investment.

The Government promotes industrial development by creating a business- friendly environment and providing adequate support services and infrastructure. It promotes innovation and technological improvement to match Hong Kong economy's shift 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 and venture capitalists, and encourages the development of a significant cluster of innovation and technology-based businesses.

Merchandise Trade Performance

In 2011, Hong Kong's external trade slackened to a relatively modest growth after the strong rebound in 2010. Total merchandise trade increased by 11 per cent

103