January 2023
After 3 years of pandemic restrictions and economic stagnation, Hong Kong and China are expected to fully open their borders in the beginning of 2023. Preparations are being made to reopen as Beijing is eager to bring back social and economic stability.
Foreign companies should be preparing to seize the opportunities which comes with opening up, as Hong Kong is back in action after the long pandemic.
Hong Kong, special administrative region of Republic of China, is under “One country, Two system” policy, which lets Hong Kong have its own currency, political and legal systems. As the core of innovation in Asia, the region is also a center of commerce, trade, and finance in the continent.
Hong Kong is a focal point of the generation of Intellectual Property (“IP”). It is also the focus for the trading in IP, including technology transfer, licensing, franchising, merchandising and copyright trading.
Some numbers to keep in mind:
Find out more: Hong Kong Business, Hong Kong’s Government Official Website
Here’s two reasons why companies who plan to reach China should use Hong Kong as a bridge to achieve their goal:
After the COVID-19 restrictions, international companies looking to invest or expand in Hong Kong may feel discourage to do. However, there are numerous reasons to consider this promising market in 2023:
Companies looking to recapture the market China must understand the stakes, and the direction that would lead them to success. Some main points to know include:
China will reinforce its legal environment. Governing China by law has been the trend since years, which shows the determination from the Central Government to create an arbitration with more fairness & justice.
Foreign companies in China may be treated the same way as Chinese local companies, making it easier for them to understand and operate locally.
The closure of the borders for almost 3 years has raised patriotic sentiment among Chinese consumers. Geopolitical influence has split the world, resulting in Chinese companies being more competitive on the local market.
To take advantage of the market, foreign companies need to adapt their products and services to the Chinese local market.
To companies that plan to invest in China, this approach may seem contradictory, give China’s self-reliant position. However, upcoming legislation will undoubtedly be much more favorable for FDI (Foreign Direct Investment). China plans to create a “world-class business environment while adapting to a stronger CCP influence”.
Particularly, according to “Plan 2025”:
Companies interested in entering the Chinese market, and access to its economic potential, should consider local partners and M&A’s. Channel partnerships, trade fairs, incubators and accelerators, are other great options to prepare the entry process.
ALTIOS is an worldwide business development and market entry expansion firm, with over 30 years of experience in helping clients explore their international potential. Thanks to its strategic network of 22 offices, ALTIOS has helped more than 3500 companies identify, qualify and collaborate with local partners, in Distribution, Joint Ventures and Acquisitions.
Our FDI experts in Shanghai can grant you with suitable resources to position yourself onto the Chinese market.
To discuss about Hong Kong’s business opportunities, book a consulting session with ALTIOS.
If you are interested in reading about Hong Kong or China, check out our latest article: China’s MedTech Market