Trading Partner Portal: Hong Kong
Hong Kong is highly ranked in several leading surveys on competitiveness, financial development, economic freedom, and ease of doing business. Hong Kong was ranked as number one in the Milken Institute’s Global Opportunity Index and the International Institute for Management Development (IMD) World Competitiveness Yearbook 2016, and ranked as the third easiest place to do business on the World Bank’s “Doing Business 2015” report. In 2012, Hong Kong was the world’s 9th largest trading entity and the busiest air cargo hub, according to the Hong Kong Economic and Trade Office in San Francisco. In addition, Hong Kong has been ranked as the freest economy in 2013 for the 20th consecutive year by the Heritage Foundation.
The United States has substantial economic ties with Hong Kong. A report done by the U.S. State Department in February 2015 indicates that there are some 1,400 U.S. firms and approximately 85,000 U.S. residents in Hong Kong. Another 1.2 million people visited Hong Kong last year from the U.S. The latest available figures on U.S. direct investment in Hong Kong show investment at about $64 billion, making the United States one of Hong Kong’s largest investors.
Trade between the United States and Hong Kong has been multiplying in the last few years, with a growth in U.S. exports from $21.1 billion in 2009 to $30.8 billion in 2019. Total trade between the United States and Hong Kong totaled $35.5 billion in 2019, according to the U.S. Department of Commerce.
Hong Kong is the sixth largest export destination for California, which exported approximately $8.4 billion in goods to Hong Kong in 2019. The top category of California exports to Hong Kong was computer and electronic products (52.4 percent), totaling $4.4 billion. Miscellaneous manufactured commodities, agricultural products, and food manufacturers were the other top California export categories to Hong Kong, representing 17.2 percent, 9.2 percent and 5.1 percent respectively.
There are 98,000 Hong Kongers that call California home, which make up 51% of all Hong Kong immigrants within the U.S. There are 1,000 students from Hong Kong studying in California universities each year. In 2017, 62,000 Hong Kongers traveled to California as a tourist destination, which accounted for 42% of all Hong Kong tourists to the U.S. Per capita, Hong Kong is the largest importer of California goods. Hong Kong is the third largest importer of U.S. wine exports internationally and the largest Asian importer of wine. (LAEDC and HKTDC)
In 2018, total FDI stock in the US from Hong Kong totaled $16.88 billion and FDI in Hong Kong from the US totaled $82.54 billion. Hong Kong FDI in the US supported 25,500 jobs and invested $632 million in research and development and another $737 million in expanding US exports. The top industry sectors for Hong Kong FDI in the US were: consumer products, food and beverages, industrial equipment, textiles, software and IT services, and business services. Select USA
In California, the number twenty-three country for FDI through foreign-owned enterprises (FOEs) is Hong Kong. Hong Kong FOEs in California provide 5,606 jobs through 148 firms amounting to $594million in wages. The top jobs by sector are: information, leisure/hospitality, manufacturing, wholesale trade, and financial activities (World Trade Center Los Angeles FDI Report, May 2020).
PRC National People’s Congress Proposal on Hong Kong National Security Legislation
U.S. Department of State, May 27, 2020
U.S. Department of Commerce
Characteristics of travelers from Hong Kong to California – 2013
U.S. – Hong Kong Wine Agreement
California vintners thirsty for a taste of China’s booming wine marketLos Angeles Times, May 25, 2010
World Competitiveness Yearbook 2013 names Hong Kong as the third most competitive economy, after the USA and Switzerland. The Yearbook, ranks the ability of economies across the world to create and maintain an environment that sustains the competitiveness of enterprises therein. The report selected 59 economies for ranking.
On Tuesday, February 4, 2020 the CalChamber hosted the Hong Kong Economic and Trade Office Commissioner Eddie Mak for a meeting in Sacramento.
Trade, investment and innovation were topics of discussion on March 14 when representatives of the Hong Kong Economic and Trade Office stopped by the California Chamber of Commerce.
(From left to right) The Honorable Clement C.M. Leung, Hong Kong commissioner to the U.S.; and Mrs. Margaret Wong, president and CEO of McWong International, and member of the CalChamber Board.
The Hong Kong commissioner to the United States, Clement C. M. Leung, JP, highlighted the numerous trade opportunities and advantages Hong Kong offers to California businesses at a California Chamber of Commerce international luncheon forum on February 6, 2014.
The event was attended by Assembly members Travis Allen (R-Huntington Beach), Brian Jones (R-Santee), and Sebastian Ridley-Thomas (D-Los Angeles); representatives from the Governor’s Office of Business and Economic Development (GO-Biz); and representatives from the U.S. Department of Commerce and U.S. Commercial Service.
Leung introduced Hong Kong as a “place where the East meets the West,” a launching pad both for U.S. businesses looking to enter the Asia market and for Chinese enterprises, which are venturing out onto the global stage.
International Luncheon Forum: US/CA – Hong Kong Relations
|Donald Tong, Hong Kong commissioner and CalChamber President Allan Zaremberg.|
(February 23, 2010) Despite the recent global recession, Hong Kong has turned doldrums into opportunities by making duty-free wine a key catalyst for economic prosperity, Hong Kong Commissioner Donald Tong said yesterday.
Tong spoke at a Sacramento international luncheon forum hosted by the California Chamber of Commerce and the Hong Kong Economic and Trade Office in San Francisco. He discussed how Hong Kong, a special administrative region of the People’s Republic of China, has managed to preserve its commitment to free market principles and competitive spirit while dealing with the slow economy.
In 2008, Hong Kong removed duty off wine, making it the first duty-free wine port among major economies.
“Removal of wine duties certainly helps encourage more locals and tourists to drink in Hong Kong, but this measure was introduced with a much bigger objective in mind: The development of Hong Kong into a hub for wine-related business,” Tong said.