China’s booming economy and rapidly growing middle-class present a wealth of opportunities for Australian businesses, particularly those companies able to tap into the rising demand for high quality goods and services. But many local SMEs with international expansion goals have discovered it’s not as simple as heading overseas and establishing operations.
In a culture such as China’s, where a business’ survival rests on the success of understanding the unfamiliar market, Australian SMEs can thrive by making the most of their status as a preferred trading partner. This can be achieved by thinking outside the box – establishing a ‘basecamp’ in Hong Kong as a gateway to the Chinese market and taking advantage of Hong Kong’s special administrative status.
The business benefits of a Hong Kong base
Hong Kong is a Special Administrative region of China, located in one of its richest and most developed provinces; serving as a two-way interface between the mainland and the global marketplace.
The principle of ‘one country, two systems’ was established in the Sino-British Joint Declaration of 1984 as a way to reconcile mainland China, operating under a communist economy, with its capitalist counterparts; Taiwan, Hong Kong and Macau. Under this law, Hong Kong is defined as a highly autonomous state with exceptional legislative and judicial power, and the Chinese central government is unable to interfere in its affairs. Read more
Mark Chapman – Dynamic Business – 13 Nov 2017