For Information About China Market

Points of Entry to the Chinese Market

Hong Kong, 

Hong Kong  offers the world’s most liberal economy; has the second highest income per capita in the world, and has the third biggest reserves in foreign currency. Its system is based on  the free flow of persons, goods, capital and knowledge. Hong Kong also has non-discriminatory regulations for  the foreign and local investors and a predictable and simple tax system based on reduced rates. The imported goods are exempted form customs duties and other similar levies. 

Hong Kong is presumably  the most appropriate point of entry to the Chinese market. As a center for business operations, it offers highly qualified labor force, equipped with the required experience and knowledge on the Chinese culture, business skills, a high level of education and knowledge of English language at the level of native speakers. Other merits of Hong Kong include, its unique characteristic as the biggest investor in China, its geographical proximity to the Chinese market,  and the fact that it offers the highest level of logistic infrastructure in the region.   

Hong Kong is among the most important business partners of China. It possesses a substantial accumulation of knowledge regarding the Chinese market. Hong Kong is treated as a base for the multinational corporations from which they can launch their business operations to China and to the other Far East countries. Moreover, effective as of January 1st 2004; China and Hong Kong has signed Closer Economic Partnership Agreement) (CEPA). This cooperation agreement (CEPA) grants significant privileges to the  firms established in Hong Kong in their business operations concerning mainland China. According to CEPA  

Hong Kong firms  are treated in a manner that is almost identical to the treatment received by the local firms and are granted customs  duties exemptions in exporting  a great variety of products. The fact that no restrictions are imposed with respect to the nationalities of the founders of firms, make Hong Kong an attractive place for founding of firms.  China grants permission  to firms of whose capital is entirely owned by investors from Hong Kong,  to   open stores and sales outlets in China.

The location of Hong Kong in the heart of Asia, carries a strategic importance for the firms who are interested in selling products to the Chinese and Asian markets.  A significant part of Hong Kong’s exports consist of the re-exportation of goods originated in the People’s Republic of China.  While re-exports correspond to 85% of the total trade of Hong Kong;  55% of this total consist of  goods manufactured in China. In 2004,  Hong Kong’s exports to China has reached 115 billion dollars.  Currently, over 70,000 Hong Kong firms are operating in  the Guangdong state in China; while  more than 2,000 Chinese firms are operating in  Hong Kong.  

The fairs regularly organized in Hong Kong, in the areas of Jewelry and Watches, Electronics, Toys, Asia-Pacific Leather Fair, Gift Items  and Household Appliances, are among the biggest fairs of the world, and offer a unique opportunity for the Turkish exporters in  promoting their products in Far East.   

Shanghai,

Enterprises that are founded entirely with foreign capital or in partnership with the local firms, are obliged to have a minimum equity capital of  200,000 US dollars. Firms who wish to  import machinery for their own use, are entitled to realize imports free of tax,  provided that they receive an approval from the competent authorities. 

Foreign investors are offered  a great variety of tax incentives; they are entitled to tax refunds and if they realize investments in China with their business profits, they become entitled to tax refunds at a rate of 40% or higher.  Foreign investors are not  granted the right for land ownership; however, they are permitted to acquire real property through leasehold for a period of up to 50 years.

Pearl River Delta,With a population of 60 million, Pearl River Data is the most economically developed region of China, and has the highest rate of urbanization.  China’s access to the outside world and the first foreign investments were initiated in this region. Pearl River Delta is densely populated with consumers from middle income level with gradually increasing purchasing power. The national income of this region is higher than the aggregate income of Singapore, Malaysia and Philippines