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Hong Kong's Role With Mainland China

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.

Gateway to 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.

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.