How The Trade Started Hong Kong was found under the British Crown Colony and is situated on the southern coast of Guangdong, China. The British rule expired on July 1, 1997 thus restoring the country to Chinese sovereignty. Britain acquired Hong Kong for its magnificent natural dock known as the Victoria Harbor. In the 19th century, it was the main port for the commerce between China and the Western nations. In fact, one-thirds of the China's imports passed through the waterfront. Before the end of the first half of the 20th century, the traditional trade with China declined. During this point, Shanghai businessmen coming from the Communists side together with Hong Kong's local entrepreneurs and British trading houses established many industries. The exports of Hong Kong were sent to Europe and North America thus attracting foreign investments from American and Japanese firms. The prime commodities exported to other nations are textiles, watches, clothing, electronics, plastics and domestic appliances. In the mid 1980's, bulk of the production processes from Hong Kong were transferred to China. This was practiced to save on labor cost since the latter has cheaper rates. The British Colony was also very successful in the banking industry. It is considered the second largest among all countries in the Pacific Region where Japan takes the lead. The status of Hong Kong in the world economy was strengthened under the British rule. After the years they spent under the colony, they have to be handed over to China. Even before the turnover, The United States played a vital role in the progress of Hong Kong. In fact, the former supported the latter in its prosperity measures as well as in major aspects of lifestyle and autonomy. Under the aspect of autonomy, United States exerted efforts to introduce bilateral agreements and promoted trade and investment schemes. The other key areas which were concentrated on are law enforcement, culture and education. Hong Kong is also a supporter of the anti-terrorism efforts of the United States. All of these things provided a link between these two progressive nations. Major Exports and Imports Between the Two Nations The major exports of Hong Kong to other countries include electrical machinery and appliances, apparel, textiles, footwear, clocks and watches, toys, plastics, precious stones and printed material. Its prime imports from other countries are fuel, raw materials and semi-manufactures, capital and consumer goods and foodstuffs. The major export partners of Hong Kong are China, United States and Japan while its major importers are China, Japan, Taiwan, Singapore, US and South Korea. The very strong trade of Hong Kong with US is evidenced by several facts. In 2005, US ranked second among all Hong Kong export partners while it was number five among all major import partners of the country. The US Census Bureau had already recorded the trade balances as late as October 2008. For the ten-month period beginning January 2008, US exports to Hong Kong amounted to $18.74 billion while the imports of the former from the latter amounted to $5.63 billion. The same bureau had recorded the 2007 statistics between the two nations with the following data:
There have been a dozen of bilateral trade agreements between the two including the Air Services Agreement, Mutual Legal Assistance Agreements and the Extradition, Prisoner Transfer. However, there was still a need to have a policy on trade. This agreement covers several vital aspects of the economy. Each aspect is addressed to provide a better foundation on the friendship of US and Hong Kong. Here are some of the inclusions in the policy:
The US had always been vocal about its confidence with the kind of trade practiced by Hong Kong. In fact, the government of America says that the practice of the latter should be emulated. Despite enjoying a mere decade of independence, Hong Kong had already proved itself in international trade. The support the two nations have for each other will lead them to better understanding in the future. They will definitely uphold what they had begun. There is no need to be worried about how the upcoming generations will accept the ties that bond their alliance. The existing governments will surely pave the way for brighter days to come. US-Hong Kong References
|
Note: Trade statistics, industry links, economic projections and global business resources on this page have been compiled from hundreds of trade related websites, government guides and resources on the Internet. We provide this valuable information for industrial suppliers, manufacturers, exporters and importers seeking to enter or expland business opportunities in Hong Kong.
Market Research
Primary Trading Partners
Major Goods Exported
Major Goods Imported
Industrial Outlook
A large portion of Hong Kong's imports (primarily from China) are re-exported to other countries
most likely to help China "bypass" trade barriers with western economies. Major industries include
textiles, clothing, tourism, banking, shipping, electronics, plastics, toys, watches, clocks.
News, Business and Culture
Government Links
Import Export & Industrial Resources