The gateway to Mainland China

Nowadays about 20% of China’s total international trade is routed through Hong Kong, making it a key player in the global supply chain. Indeed, Hong Kong’s position makes it the logical first stop for foreign businesses planning to access the Mainland.

Hong Kong offers easy access – commercially and geographically – to Mainland China business opportunities. The Pearl River Delta (PRD) region is immediately to the north of Hong Kong and business people commute regularly and easily between the two.

The PRD, as it’s commonly known, is China’s largest and most productive manufacturing region. It is home to tens of thousands of factories owned or managed by Hong Kong and overseas companies. As a result of its manufacturing success, the major cities of the PRD – Shenzhen, Guangzhou and Dongguan – are now among the wealthiest in China and have become strong markets for consumer goods and business services in their own right.

Multi-modal transportation links between Hong Kong and the Mainland and 24-hour customs clearance are complemented by an extensive cross-boundary infrastructure that is continually being upgraded to keep pace with business and traffic growth.

From Hong Kong to Guangzhou and beyond

Ensuring the smooth flow of people and cargo between Hong Kong and Mainland China is essential to business success. Several new transport links are under construction, including the Guangzhou-Shenzhen-Hong Kong Express Rail Link.

  • The rail link from Hong Kong to Guangzhou will cover 142 kilometres in 48 minutes
  • It will link into existing train services on the Mainland, connecting Hong Kong still further with other major cities in southern China and beyond
  • Wuhan will be accessible in five hours and Shanghai in eight hours, city centre to city centre

Closer economic partnership Arrangement with the Mainland

The closer economic Partnership Arrangement (CEPA) “allows local and foreign-owned businesses in Hong Kong to tap the vast opportunities China offers, enabling service providers in logistics, freight forwarding, storage, air transport sales agency and maritime and road freight transport to set up wholly owned enterprises on the Mainland” (Hong Kong Logistics Development Council et al., 2013). This landmark agreement gives Hong Kong-based companies a first-mover advantage for business expansion on the Mainland and reinforces Hong Kong’s role as the premier gateway for international investors in China. Overseas companies can take advantage of CEPA by establishing a business in Hong Kong, partnering with Hong Kong firms or buying Hong Kong firms.