Hong Kong - Economy, People, Facts, Business and Trade
Hong Kong has always been the central hub for business and trade. The nation itself has demonstrated a high level of economic resilience and has remained one of the most competitive business and financial hubs of the world. Its legal framework and the support for its rule of law has been the cornerstone of strength in this dynamic city. Corruption is not tolerated and the integrity of the government is supported by the highest degree of transparency.
Regulatory openness and efficiency in global commerce have strongly supported the entrepreneurial activity of the city. Their interaction with China turned out more intense because of their strengthened non-economic and financial linkages. Hong Kong is even the most significant transit point by far when it comes to imports and exports to and from China.
Hong Kong became a part of the PRC or the People's Republic of China in the year 1997. With the agreement of "one country, two systems," China has promised that they will not impose their socialist policies onto Hong Kong, and also allow this autonomous region to keep their high degree of autonomy in every matter that they attend to, except for their defense and foreign policy for about 50 years. This is the autonomy policy that they have stressed through political interference coming from the People’s Republic of China in the recent years. In Hong Kong’s major industries, you will find shipping and financial services dominating. Manufacturing, on the other hand, has migrated to Mainland China and different Southeast Asian economies. This is partly due to the higher labor cost and property prices arising from very limited land in Hong Kong.
Rule of Law
At the Basic Law level, the right to private ownership of property is included in the Constitution established by Hong Kong. Company and commercial laws provided the most effective enforcement over the protection and contracts of the corporate rights. The region's judiciary is functioning independently, yet Beijing has reservations over their right in making the final interpretations of this Basic Law. This effectively limits the power of the Court of Final Appeal. Hong Kong displays an amazing track record of combating corruption.
The standard income tax rate for every individual is capped at 15 percent, while the tax rate on corporate profit tax tops out at 16.5 percent. Hong Kong’s tax system is very efficient and simple. Their overall tax burden is equal to that of 14.4 percent of the total domestic income.
The government spending has reached to an amount of 18.3 percent from the total output of GDP in the past three years. Its budget surpluses have reached the average of 2.0 percent of GDP. Finally, their public debt is at 0.1 percent of GDP.
The freedom for businesses is protected well within their efficient regulatory framework. The transparency being upheld encourages entrepreneurship and also the overall environment is helpful for the operation and formation of various start-up businesses.
Learn about what to do in Hong Kong.