1. Managing your China business How Hong Kong + Cepa make it easier Alan Wong Deputy Executive Director Hong Kong Trade Development Council

2. Managing your China business 1. The China appeal 2. Hong Kong’s role 3. Using Cepa to succeed 4. How TDC can help

3. The China appeal! GDP up 9% Exports up 35% Imports up 40% FDI up 40% Huge, diverse country Unfamiliar regulations Need for customisation Risk issues for SMEs

4. Hong Kong’s role “Hong Kong is an ideal gateway for New Zealand companies to tap enormous business opportunities in the Chinese mainland market” Merv Stark, Senior Trade Commissioner, North Asia

5. 1.Favourable business environment 2.Financial / logistics centre 3.China access / experience Hong Kong’s role

6. Hong Kong + Pearl River Delta *Professor Michael Enright, PhD (Harvard) “Fastest growing region of the fastest growing large economy”*

7. Sourcing from China Hong Kong = 60,000+ companies Finance + logistics International experience PRD = Low, stable labour costs World class factories Top manufacturing and export region Hong Kong + Pearl River Delta

8. Average GDP growth (%) ‘97 – ‘03 Exports US$ billion ‘02 Shenzhen16.762.9 Dongguan18.228 Economic and export strength Source: Statistical Yearbook of Guangdong and Shanghai, 2003 Shanghai10.948.5 Pearl River Delta – Yangtze River Delta

9. Selling to China: Hong Kong = International experience Finance/logistics/IPR Trend-setting image PRD = China’s wealthiest region Growing consumer base Nationwide distribution Hong Kong + Pearl River Delta

10. GDP per capita, 2002 (US$) Shenzhen5,604 Dongguan5,244 Source: Statistical Yearbook of Guangdong and Shanghai, 2002 Shanghai4,911 Buying power! Pearl River Delta – Yangtze River Delta

11. Using Cepa to succeed Free trade deal Preferential access to China Covers goods and services Better than WTO! Any nationality eligible

12. What benefits? Duty-free exports to China Covers 90% of HK exports Who is eligible? Products “Made in Hong Kong” No need for office in Hong Kong Using Cepa to succeed Implications for manufacturers

13. What benefits? Earlier access Lower entry criteria Wholly-owned operations Who qualifies? Incorporated in Hong Kong In business for 3-5 years Liable for profits tax 50% local staff Using Cepa to succeed Implications for service companies

14. How HKTDC can help Business matching Trade Fairs Market intelligence

15. How TDC can help Business matching

16. “Best trade fairs in Asia” 18 international fairs Popular with Chinese buyers/exhibitors 30,000 exhibitors; 350,000 buyers How TDC can help Trade fairs

17. How TDC can help Market intelligence

18. Contact us! Sydney Office Level 3, Hong Kong House, 80 Druitt Street Tel: +61-2-92618911 Fax: +61-2-92618966 Sydney.office@tdc.org.hk