What are the opportunities and potentials for HK businesses in the mainland?

The economic growth in China Continuous growth in real GDP Also, there is an obvious growth in GDP per capita  Increasing in purchasing power Enlarging the potential market in China

China’s Average Annual Real GDP Growth Rate YearGDP growth rate % % % 2007(forecast)About 9.25%

Globalization becoming a single-world society Stages of production finished in different countries Customers are no longer concern about the origin of products (low regional preference)  Minimizing the possible risks  Reinforcing global development

The development of e-commerce General use of computer and internet People do business through internet (e.g. , e-conference ) Easy to manage business and operations oversea Cross broad business become possible

The development of e-commerce (continued) E-commerce is well-developed in HK  Possess the necessary skills and talents  A potential to enlarging the business in China

Information Technology (Example) one of the focus for HK firms - Telecom market; - e-commerce; - and software industries

What are the strengths and weaknesses of HK businesses vis-a-vis mainland firms and multinationals?

Strengths Developed a good image in China High quality products and services Good infrastructure and business system Adequate talents and business experience Similar culture and language with China Market sensitive CEPA—zero tariff

Weaknesses Less innovative ideas Not enough famous and local brands High costs Lack high-tech professionals