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Socio-economic Systems - Part 1
Commerce and Industry
- Hong Kong's participation in the World Trade Organization
Hong Kong is firmly committed to free and open trade. Hong Kong became a separate contracting party to the General Agreement on Tariffs and Trade (GATT) in 1986, and is a founding member of the World Trade Organization (WTO) established in 1995. Hong Kong is a Member of the WTO in its own right. After the reunification, the HKSARG continues to participate actively in the WTO as a full and separate member to secure maximum market access for Hong Kong's exports of goods and service to international markets.
Hong Kong has been in the forefront of multilateral trade liberalization efforts since the GATT days. Through the Trade and Industry Department and the Hong Kong Economic and Trade Office in Geneva, Hong Kong participates actively in various WTO committees/discussions to monitor and evaluate the effective operation of the WTO, and the faithful implementation of commitments by other WTO members. For example, Hong Kong played an active role in the WTO negotiations on basic telecommunications and financial services, the successful conclusion of which marked an important step towards the liberalization of these sectors for local service providers.
The Fourth WTO Ministerial Conference was successfully held in Doha, Qatar in 2001, during which, members agreed to launch a new round of multilateral trade negotiation covering trade in agricultural products, services and industrial products.
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- Investment Promotion and Protection Agreements
The Hong Kong SAR Government recognizes the importance of inward investment in sustaining Hong Kong's economic growth and in fostering its development as an international center for manufacturing, trading and business services. To give additional assurance to overseas investors that their investments in the territory are adequately protected, and to enable Hong Kong businesses to enjoy similar protection in respect of their investments overseas, Hong Kong has been negotiating and concluding its own Investment Promotion and Protection Agreements (IPPAs). The main features of an IPPA provide for fair treatment for foreign investors, compensation if their investments are expropriated and free transfer of investments and returns. Hong Kong has signed IPPAs with economies such as Australia, France, Germany, Japan, Korea, the UK etc.
Memorandum of Understanding on Investment Promotion Co-operation: Hong Kong
and Canada On January 11, 2008, a Memorandum of Understanding (MOU) on
investment promotion co-operation was signed between Hong Kong and
Canada. By working collaboratively through targeted activities specified
in the MOU, Canada and Hong Kong expect to significantly increase private
sector investment activities in both markets. The MOU will also help
identify strategic investments from Hong Kong into smaller Canadian companies
who are seeking capital and local market expertise to launch business
opportunities into Mainland China. Investment promotion is an important
part of the new Global Commerce Strategy of the Canadian government.
- Promotion of Innovation and Technology
Innovation and technology are important economic drivers underpinning Hong Kong's future economic development. The Government is totally committed to promoting innovation and technology. As part of the Government's efforts in strengthening its institutional framework to promote innovation and technology, the Innovation and Technology Commission (ITC) has been set up within the Commerce, Industry and Technology Bureau.
Currently, the ITC operates the following funding schemes to assist Hong Kong companies to develop innovative ideas and technology businesses:
One of ITC's key commitments is to make available and to enhance Hong Kong's technological infrastructure to facilitate development of innovation and technology activities. To this end, the ITC is working closely with -
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The Hong Kong Science and Technology Parks Corporation to facilitate application, research and development, and transfer of technologies in industry in Hong Kong.
Inaugurated on May 2001, the Hong Kong Science Park & Technology Parks Corporation is established to bring the world-class technology and the most highly skilled workforce together in a purpose built environment so as
to create cooperative, clustering and synergy effects. The Parks are designed to accommodate companies of all sizes and stages of development and to promote interaction and innovation on both local and global basis.
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The Hong Kong Productivity Council to fulfill its mission in promoting productivity excellence; and
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The Hong Kong Applied Science and Technology Research Institute Company Limited
(ASTRI) to take forward the planning and development work of the Applied Science and Technology Research Institute.
Design
is an integral part of Hong Kong's innovative capacity. The Government has
been promoting deign as a value adding activity for integration into the
mainstream business processes. To strengthen Government's support for design
and innovation, and promote the wider use of deign and innovation in
industries to help them move up the value chain, the Government launched a
HKD250 million "DesignSmart" Initiative in June 2004, which include
the following major components:
o
To
work with HKSTPC and HKPC to set up an "InnoCentre" as a one-stop shop
for design to provide
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Incubation
services for design ventures
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Rental
space at commercial rates for design-related companies
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Professional
education and training, internship, exhibition and seminars in design
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Networking
among design professionals and user industries.
More
about InnoCentre
o
To
run the Design Support Program (DSP), which comprises four funding schemes
aiming at supporting design and branding-related research, promoting
design/business collaborations, developing continuing education for design
professionals as well as fostering a culture of design.
More
about Design Support Program (DSP)
More information on the work of ITC.
- Participation of the Hong Kong Special Administrative Region in Regional Economic Cooperation Fora
As part of the efforts to promote Hong Kong as an international center of trade, commerce, finance and communications, the Hong Kong SAR has been taking an active part in international and regional economic and trade fora. The Basic Law guarantees full autonomy of the HKSAR in the conduct of its external commercial relations and provides for the HKSAR's participation in these international organizations beyond 1997.
Being the world's 11th largest trading market, the world's 6th largest foreign
exchange market, the world's 15th largest banking centre, and Asia's second
biggest stock market, the HKSAR stands ready to contribute to, and benefit from regional economic cooperation.
The HKSAR is a member of the Asia-Pacific Economic Cooperation (APEC) and Pacific Economic Cooperation Council (PECC), and an associate member of the Economic and Social Commission for Asia and the Pacific (UNESCAP).
More...
More on UNESCAP
- Helping Business Program
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DesignSmart Initiative:
The DesignSmart Initiative provides various support for the promotion of the wider use of design and innovation in industries to help them move up the value chain. Learn more about the Design Support Program and InnoCentre, the two key initiatives, under this Scheme. -
Innovation and Technology Fund:
This Fund aims to encourage and assist Hong Kong companies to upgrade their technological level and introduce innovative ideas to their business. There are four different funding
programs under the Fund. Find program details, application deadlines, past projects and other useful information here.; -
New Technology Training Scheme:
This Scheme provides assistance to companies that wish to have their staff trained in new technologies that would benefit their companies. Find out which companies are eligible and how to make an application. -
Patent Application Grant:
Locally incorporated companies and individuals can seek funding to apply for
patents for their own inventions. Browse here for details and download the
form to apply.
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SME Funding Schemes:
These schemes assist small and medium enterprises (SMEs) in Hong Kong secure
financing for acquiring business installations and equipment, and meeting
working capital needs; expand overseas markets, and enhance overall
competitiveness.
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Professional Services Development Assistance Scheme
(PSDAS): The PSDAS provides financial support for projects that
aim at enhancing the standard and/or external competitiveness of Hong Kong's
professional service sector. Find details here, including eligibility,
matching contributions and application procedures.
More on doing
business in Hong Kong
- Regional Headquarters and Offices in Hong Kong
Over 3,900 overseas companies have established their regional headquarters or offices in Hong Kong as at
June 1, 2006. For this group of international-minded companies, they have chosen Hong Kong for good reasons:
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Hong Kong ranks first by the Heritage Foundation as
the world's freest economy for the 11th consecutive years among more than 160
economies in 2008.
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the "Economic Freedom of the World: 2005 Annual
Report" jointly released by the Fraser Institute of Canada and the Cato
Institute of the US compared the level of economic freedom in 141
economies. Apart from the overall top ranking, Hong Kong also ranks
first in "Freedom to trade internationally" and "regulation of
credit, labor and business" and second in "size of government".
The top 5 important factors attracting companies to establish their RHQs or Regional Offices in Hong Kong are:
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Relatively Low and very simple tax system
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Free flow of information
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Corruption-free government
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Absence of exchange controls
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Communication, transport and other infrastructure
Invest Hong Kong is the Government department dedicated to promoting FDI
(Foreign Direct Investment) into Hong Kong. It provide investors with services to enable them to make informed investment decisions in HK with the focus on certain key sectors, and to set up RHQs and ROs in the territory.
More...
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