What change in China means for trade in Hong Kong

AgExporter, March, 2002 by George D. Ferris

With the same ethnic makeup as its huge neighbor, a healthy average disposable income ($24,000 in 2000), demanding tastes and years of exposure to Western products, Hong Kong consumers are a leading indicator of potential consumer demand in China. Hong Kong should be viewed as an incubator or microcosm for long-term export projects in China--an easy-entry, exporter-friendly laboratory for the world's most populous country. These same factors will also sustain Hong Kong as a significant market in its own right.

In the short term (one to five years), Hong Kong traders will likely continue in their present role, with some modifications. Hong Kong traders are well positioned to benefit from increasing opportunities to provide such services as marketing, accounting, documentation, shipping, insurance and financing.

The more the Chinese market opens, the more challenging and competitive it will become. And although trade patterns will likely change markedly, the pace of change will be much slower than most people expect-at least 10 years.

For details, see FAS Report HK1047. To find it on the Web, start at www.fas.usda.gov, select Attache Reports and follow the prompts.

The author is the deputy director of the Agricultural Trade Office, Hong Kong. Tel.: (011-852) 2841-2350; Fax: (011-852) 2845-0943; E-mail: atohongkong@fas.usda.gov