Hong Kong Trade Profile and Economic Analysis

Hong Kong stands at an important crossroads between China and the world. It is a centre of finance and free enterprise, and its policy of positive non-interventionism has given rise to a record number of start-ups flourishing within its borders.

The Port of Hong Kong is an important deepwater seaport that acts as the gateway to the Chinese ports of Shenzhen and further into the trading and manufacturing hub Guangzhou. It is among the busiest ports in the world, handling about 18 Million twenty-foot containers in 2020.

Hong Kong is a Special Administrative Region of China and an important trading partner. China governs Hong Kong under the ‘One Nations, Two Systems’ ideology. Communist Capitalism is the prevailing economic system in China while the residents of Hong Kong enjoy a free economic system. Industry in China is controlled by the Chinese Communist Party and the nation is a developing economy. Instead, Hong Kong has private enterprises and a highly developed economy. China and Hong Kong are also extremely different in terms of public life and politics. Hong Kongers enjoy much more freedom of expression and thought than the Chinese. Mainland China is, however, the biggest trading partner of Hong Kong, with bilateral trade topping $550 Billion.

India and Hong Kong: Trade and Bilateral Relations

The nations of India and Hong Kong are involved in several pacts that relate from those of the criminal justice systems to trade, and customs cooperation. Also, the reserve banks of both nations have agreed upon supervisory cooperation and information exchange. Hong Kong stands as the fourth-largest buyer of Indian Exports, after the United States of America, China, and the United Arab Emirates. The Indian government has recently highlighted the issue of rising imports from Hong Kong. It is believed that China could be routing their exports through Hong Kong, in an attempt to flout custom duties.

There is also a significant population of Indians residing in Hong Kong. This includes students and professionals from India that make good of the immense financial and educational opportunities available in Hong Kong.

Hong Kong Export Analysis

Several countries route their exports through Hong Kong. Hong Kong is an international hub for grey market electronics that are brought here from various countries and then exported elsewhere. Hong Kong’s leading export commodities are electrical equipment, machinery, pearls & precious stones, clocks & watches and articles of apparel. The leading trade partners are China, India, Japan, Singapore and Thailand.

Hong Kong Import Analysis

In Hong Kong, almost all items of consumer consumption are imported from elsewhere. Over 90% of the total food supply is also imported. Hong Kong’s port has been the determining factor in its growth. As the port receives a heavy volume of goods, it has historically been cheaper to import than to attempt to grow or farm for self-sustenance. Hong Kong’s leading import partner is China, accounting for over half the total volume. Followed by Singapore, Japan, South Korea, the United States and Malaysia.

The top import commodities are electrical & electronic equipment, machinery, pearls & precious stones, optical & medical apparatus and mineral fuels and oils.

Hong Kong: What The Future Holds

In recent years, pro-democracy activists have clashed, on multiple occasions, with the pro-China government forces. The altercations have been very acrimonious as Hong Kongers who support the integration with China clashed on the streets with pro-democracy activists. The ‘Two Systems’ policy that was agreed upon by Britain and China is set to expire in 2047. The leaders must agree upon a suitable solution to the demands of the public and maintain peace and civility. This will ensure that Hong Kong keeps on growing and maintaining a stable, developed state and serve as an example to other nations in the region.

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