The advantage of Hong Kong relative to other Asian cities is that it is politically, culturally, geographically and economically attached to the largest and fastest-growing market in the world – Mainland China. It remains a highly efficient centre for services and fundraising activities, something that China is in desperate need of. To an increasing number of multinationals, Hong Kong is also an ideal base for their regional headquarters and offices.
Hong Kong is attractive because of its location and also the value it adds. To successfully capture these opportunities, Hong Kong has to be able to maintain a strong, transparent and well regulated financial system; low and predictable taxes; the rule of law; a well- developed transportation and telecommunications infrastructure, the free flow of trade, information and capital facilities, and a level playing field for all corporations.
More importantly, it should continue its ability to adjust to changing conditions, from a manufacturing-based economy to a service economy. Hong Kong must find new ways of strengthening economic synergy with the Mainland and, in particular, the PRD. It will face competition from Shanghai, which benefits from Yangtze River Delta region, but the dynamism in one should help rather hinder the success of the other.
Besides, with China’s sustainable economic growth, it is possible that there are two economic hubs such as Hong Kong and Shanghai in serving their respective delta regions. The article highlights the different aspects that given Hong Kong advantage over the other Asian cities. For instance, Hong Kong is connected to the mainland China in different ways, viz. politically, geographically, culturally, and economically.
The aspects form the pillars of a successful economy in the contemporary times. Whether you are familiar with the field of business economics or not, this article gives the reader a firm grasp of simple basic principles on what Hong Kong needs to do in a bid to be anchored in economic sustainability within the mainland.
The article has given essential insights on carrying out business in Hong Kong and other neighbouring regions. The article uses simple entrepreneurial principles, which are very viable on top of encouraging healthy competition from the mentioned regions such as Shanghai.
This article shows why Hong Kong needs a business model and a strategy and it responds by indicating that it is necessary for the country to maintain the right performance measures. Even though the article is short, it has given the logic of successful economic growth coupled with how that logic is incorporated in practice.