U.S. and Hong Kong (2002)

HONG KONG

COUNTRY COMMERCIAL GUIDE

Fiscal Year 2003

U.S. COMMERCIAL SERVICE
AMERICAN CONSULATE GENERAL, HONG KONG
JULY 2002

COUNTRY COMMERCIAL GUIDES CAN BE ORDERED IN HARD COPY OR ON DISKETTE FROM THE NATIONAL TECHNICAL INFORMATION SERVICE (NTIS) AT 1-800-553-NTIS. U.S. EXPORTERS SEEKING GENERAL EXPORT INFORMATION AND ASSITANCE OR COUNTRY-SPECIFIC COMMERCIAL INFORMATION SHOULD CONSULT WITH THEIR NEAREST EXPORT ASSISTANCE CENTER OR THE U.S. DEPARTMENT OF COMMERCE'S TRADE INFORMATION CENTER AT (800) USA-TRADE, OR GO TO ONE OF THE FOLLOWING WEB SITES: WWW.BUYUSA.COM, WWW.EXPORT.GOV, OR WWW.TRADEINFO.DOC.GOV.

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY

2. ECONOMIC TRENDS AND OUTLOOK

A. Major Trends and Outlook
B. Principal Growth Sectors
C. Government Role in the Economy
D. Balance of Payments Situation
E. Infrastructure Situation
F. Macau Economic Scene
G. Pearl River Delta – Hong Kong's Hinterland

3. POLITICAL ENVIRONMENT

A. Nature of Political Relationship with the United States
B. Major Political Issues Affecting the Business Climate
C. Brief Synopsis of the Political System, Schedule for Elections, and Orientation of Major Political Parties
D. Macau Political Scene

4. MARKETING U.S. PRODUCTS AND SERVICES

A. Distribution and Sales Channels
B. Use of Agents/Distributors/Finding a Partner
C. Franchising
D. Direct Marketing
E. Joint Ventures/Licensing
F. Steps to Establishing an Office
G. Selling Factors/Techniques
H. Advertising and Trade Promotion
I. Pricing Product
J. Sales Service/Customer Support
K. Selling to the Government
L. Protecting Your Product from IPR Infringement
M. Need for a Local Attorney

5. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT

A. Best Prospects for Non-Agricultural Goods and Services
B. Best Prospects for Agricultural Products

6. TRADE REGULATIONS, CUSTOMS AND STANDARDS

A. Trade Barriers, Including Tariffs, Non-Tariff Barriers and Import Taxes
B. Customs Valuation
C. Import Licenses
D. Export Controls
E. Import/Export Documentation
F. Temporary Entry
G. Labeling, Marking Requirements
H. Prohibited Imports
I. Standards
J. Free Trade Zones/Warehouses
K. Special Import Provisions
L. Membership in Free Trade Arrangements

7. INVESTMENT CLIMATE STATEMENT

A. Openness to Foreign Investment
B. Conversion and Transfer Policies
C. Expropriation and Compensation
D. Dispute Settlement
E. Performance Requirements/Incentives
F. Right to Private Ownership and Establishment
G. Protection of Property Rights
H. Transparency of the Regulatory System
I. Efficient Capital Markets and Portfolio Investment
J. Political Violence
K. Corruption
L. Bilateral Investment Agreements
M. OPIC and Other Investment Insurance Programs
N. Labor
O. Foreign Trade Zones/Free Ports
P. Foreign Direct Investment Statistics

8. TRADE AND PROJECT FINANCING

A. Banking System
B. Foreign Exchange Controls Affecting Trading
C. General Availability of Financing
D. How to Finance Exports/Methods of Payment
E. Types of Available Export Financing and Insurance
F. Availability of Project Financing/OPIC and Eximbank Project Finance/Lending from Multilateral Institutions
G. List of Banks with Correspondent U.S. Banking Arrangements
H. The Asian Development Bank

9. BUSINESS TRAVEL

A. Business Customs
B. Travel Advisory and Visas
C. Holidays
D. Business Infrastructure
E. Temporary Entry of Goods

10. ECONOMIC AND TRADE STATISTICS

APPENDIX A -- COUNTRY DATA
a. Population
b. Population Growth Rate
c. Religion(s)
d. Government System
e. Language(s)
f. Workweek

APPENDIX B -- DOMESTIC ECONOMY
a. GDP
b. Real GDP Growth
c. GDP Per Capita
d. Government Spending as a percent of GDP
e. Inflation
f. Unemployment
g. Foreign Exchange Reserves
h. Average Exchange Rate for US$1.00
i. Debt Service Ratio
j. U.S. Military/Economic Assistance

APPENDIX C -- TRADE STATISTICS
a. Total Hong Kong Exports
b. Total Hong Kong Imports
c. U.S. Exports
d. U.S. Imports

11. U.S. AND HONG KONG CONTACTS

A. U.S. Consulate General Trade-Related Contacts
B. AmCham and the U.S. China Business Council
C. Hong Kong Trade or Industry Associations in Key Sectors
D. Hong Kong Government Offices Relating to Key Sectors and/or Significant Trade Related Activities
E. Hong Kong Market Research Firms
F. Licensed U.S. Commercial Banks in Hong Kong
G. TPCC Trade Information Center in Washington
H. U.S. Department of Agriculture

12. MARKET RESEARCH

A. Industry Sector Analyses
B. Reports Prepared by FAS

13. TRADE EVENT SCHEDULE

A. FY 2002 and FY 2003 Events with Commercial Service Involvement
B. Trade Events Schedule (July 2002 – September 2003)

CHAPTER 1 EXECUTIVE SUMMARY

July 1, 2002, marked the fifth anniversary of Hong Kong's reversion to Chinese sovereignty after 156 years of British rule. The Sino-British Joint Declaration, signed in 1984, and the Basic Law, passed by China's National People's Congress in 1990, form the legal basis for China's "One Country, Two Systems" guarantees for the Hong Kong Special Administrative Region (SAR) of China. Hong Kong under Chinese sovereignty has remained one of the freest economies in the world. The Hong Kong Government remains committed to advancing Hong Kong's distinct way of life, and the PRC Government has generally respected its commitments regarding Hong Kong's high degree of autonomy, which applies in all areas except in matters of foreign affairs and defense. Hong Kong remains a free society that extends basic civil liberties to its citizens every day, largely defines its identity in terms of being an open international city, and continues to make its own decisions in pursuit of its own identity and economic interests.

After a painful recession brought about by the Asian financial and economic crisis that affected the entire region in 1997 & 1998, Hong Kong's economy began to recover in the second quarter of 1999 and grew solidly in 2000. However, the economy slackened again in 2001 as a result of the economic slowdown in the United States and Europe. It grew 0.1 percent in 2001, contracting during the second half of the year and into the first quarter of 2002. The government expects one percent growth in 2002. As of July 2002, unemployment stands at a historic high of 7.4 percent.

The stock market, after losing over 60 percent of its value from its peak in August 1997 to its nadir in August 1998, recovered to pre-crisis levels in 2000. However, the stock market weakened overall during 2001. Inbound tourist arrivals, a key economic driver for the Hong Kong economy, grew 5.1 percent in 2001, and 14.2 percent through the first four months of 2002. Property prices, which also fell sharply during the crisis, have now stabilized, but at levels well below their pre-crisis highs. For office space in the prime Central business district, prices are currently 50 percent lower than at their peak in 1997.

According to U.S. Government statistics, Hong Kong was the United States' 15th largest trading partner and 13th largest export destination in 2001. U.S. exports to Hong Kong totaled US$14.1 billion in 2001, and two-way trade totaled US$23.7 billion. U.S. exports to Hong Kong in the first quarter of 2002 were down 18.2 percent over the previous year due to sluggish domestic consumption and capital investment.

Consumer price deflation persisted in Hong Kong in 2001 and the government expects this trend to continue in 2002. Foreign currency reserves totaled US$111.2 billion at year's end, the world's fourth largest. A tradition of prudent fiscal management has generally enabled Hong Kong to run budget surpluses. In recent years, however, the government's underlying fiscal position has weakened. The causes lie on both the expenditure and revenue sides. In 2000-01, the government registered a deficit of US$1 billion. This increased to US$8.4 billion in 2001-02, or 5.2 percent of GDP. The government has charted a path to fiscal balance over the medium term. It will emphasize expenditure cuts but has not ruled out the possibility of tax increases.

The keys to Hong Kong's economic success -- its free-market philosophy, entrepreneurial drive, absence of trade barriers, well-established rule of law, low and predictable taxes, transparent regulations, free flow of information and complete freedom of capital movement -- remain as strong as ever. The rise in unemployment has eased wage pressure and dampened the high turnover that most companies faced here in the past as a result of the extremely low unemployment rates that had traditionally prevailed.

In 1998, the US$9 billion Chek Lap Kok Airport replaced Hong Kong's Kai Tak Airport, which was strained beyond capacity in its last year of operation with 30 million passengers and 1.6 million tons of cargo. The new airport, with a second runway that opened in May 1999, is much larger than Kai Tak, with an ultimate annual capacity of 87 million passengers and nine million tons of air cargo. Hong Kong also boasts the world's busiest container port, now handling over 17.8 million TEU's (twenty-foot equivalent units) of cargo per year. To meet the continued growth in demand for container handling facilities, Hong Kong is building its ninth container terminal (CT 9) on Tsing Yi Island.

There are over 1,100 U.S. businesses represented in Hong Kong -- including over 600 regional operations -- and over 50,000 American citizens reside in Hong Kong. According to U.S. Government statistics, U.S. direct investment in Hong Kong totaled almost US$29.4 billion by year-end 2001 (based on historical costs), making the United States one of Hong Kong's largest investors, along with the United Kingdom, China and Japan.

With China's access to the World Trade Organization (WTO), Hong Kong is well placed to play a key role for U.S. firms wishing to expand exports to one of the world's largest markets. Hong Kong is a trading hub for China, and its trading firms are experts at promoting U.S. products and services in China. They have the experience and common culture that allows them to maximize opportunities for U.S. firms, particularly small- and medium-sized enterprises (SMEs).

Geographic proximity combined with cultural and linguistic ties, particularly to adjacent Guangdong province, have greatly accelerated Hong Kong's economic interaction with China. Trade and investment with China have surged as China's economy continues its fast-track growth. China is Hong Kong's largest trading partner, absorbing one-third of Hong Kong's total exports of US$189.9 billion in 2001. Hong Kong serves as the principal transshipment point for Chinese exports. Almost 60 percent of cumulative foreign investment in China originated from or transited through Hong Kong. Over five million Chinese workers are employed by Hong Kong-invested enterprises in Guangdong alone.

Hong Kong is a separate APEC and WTO member and an independent customs territory. As such, Hong Kong investment in China is treated as "foreign" investment, receiving no preferential treatment beyond that given to other foreign investors. However, beginning in 2001, Hong Kong and the PRC entered into negotiations to complete a free trade agreement (called the Closer Economic Partnership Arrangement.) Initially, Hong Kong and China plan to negotiate toward a goods-only agreement. This would allow goods of Hong Kong-origin to pass into China duty-free. This agreement may provide opportunities for manufacturers in Hong Kong looking to sell into the Mainland market. A second stage of negotiations could tackle barriers in the services sector. This may open China's market for service providers in Hong Kong ahead of the concessions China has already made as part of its WTO accession. However, given the complexity of the issues involved, a signed agreement is not expected anytime soon. The Hong Kong Government is also seeking to leverage its traditional ties to the mainland by facilitating flows of people, cargo, capital and information across the border.

With a per-capita GDP of about US$24,000, Hong Kong's market offers outstanding opportunities for sales of a full range of U.S. products and services. The Government's focus on the environment and its continued spending on infrastructure projects will also provide substantial business opportunities for U.S. firms. Other attractive sectors for U.S. firms are information technology, franchises, medical devices and high-value food products.

This Country Commercial Guide (CCG) presents a comprehensive look at Hong Kong's commercial environment using economic, political and market analyses. The CCGs were established by recommendation of the Trade Promotion Coordinating Committee (TPCC), a multi-agency task force, to consolidate various reporting documents prepared for the U.S. business community. CCGs are prepared annually at U.S. embassies and consulates through the combined efforts of several U.S. Government agencies.

CHAPTER 2 ECONOMIC TRENDS AND OUTLOOK

A. Major Trends and Outlook

The Hong Kong economy grew 0.2 percent in real terms to US$161.8 billion in 2001, but dipped into recession in the second half of the year due to the global slowdown and the September 11 events. This is Hong Kong's second recession since the Asian financial crisis in 1997. Declining exports, as well as weak consumption and investment are causing the most recent downturn. The government is predicting a slow recovery and one percent growth in 2002. The unemployment rate is at record levels. It rose to 7.1 percent in February-April 2002 and is now at 7.4 percent.

Hong Kong has experienced price deflation since the Asian financial crisis. Prices declined by 1.6 percent in 2001, as measured by the Consumer Price Index, after falling by 3.8 percent in 2000. The government has projected that deflationary conditions will continue and that prices will drop 2.8 percent in 2002.

Reflecting its role as an entrepot, Hong Kong's trade in 2001 was equal to 2.4 times its GDP. The United States is Hong Kong's second largest trading partner. According to U.S. government statistics, U.S. exports to Hong Kong in 2001 totaled US$14.1 billion and imports from Hong Kong US$9.7 billion, resulting in a trade surplus of US$4.4 billion. The United States is Hong Kong's second largest export market, after China. Hong Kong's other principal export markets are Japan, Germany and the United Kingdom. China is the largest supplier of Hong Kong's imports with a 42 percent share, followed by Japan, Taiwan and the United States.

Hong Kong's exports (comprising re-exports and domestic exports) in 2001 dropped by 5.8 percent to US$189.9 billion. Re-exports, which account for 89.6 percent of Hong Kong's total exports, decreased by 4.6 percent in value terms in 2001 (re-exports refer to goods made in foreign countries, principally China, which officially enter Hong Kong's customs territory for shipment onward to other countries). Domestic exports plunged by 15.2 percent in 2001, following a 6.1 percent increase in 2000. Imports declined by 5.4 percent in value terms in 2001 to US$201.1 billion, due to weak domestic consumption and capital investment. Hong Kong's merchandise trade deficit increased by 2.3 percent in 2001 to US$11.2 billion. Reflecting Hong Kong's increasing role as a provider of services to the region, exports of services increased by 2.4 percent in 2001 to US$43 billion. This helped create a services surplus of US$20.1 billion, which offset the merchandise trade deficit, and led to a trade and services surplus of US$8.9 billion.

External trade shrank in the first quarter of 2002, as a result of weak global demand. Total exports declined 6.2 percent, compared to the year earlier period. Domestic exports plummeted by 17.5 percent. Imports dropped 9.1 percent.

Since 1983, the Hong Kong dollar has been linked to the U.S. dollar at a rate of approximately HK$7.8 = US$1. The Hong Kong Government has pledged to maintain the link. Currency notes are issued by three commercial banks, and are fully backed by U.S. dollars on deposit with the Exchange Fund. The link requires local interest rates generally to track those in the United States. The market exchange rate of the Hong Kong dollar against the U.S. dollar remained on the strong side of the link during 2001, ranging from 7.798 to 7.8. During the Asian financial crisis, the link was maintained through the operations of the currency board mechanism, which resulted in upward adjustments -- at times quite sharp -- of interest rates.

B. Principal Growth Sectors

Services dominate Hong Kong's economy, accounting for 85.7 percent of GDP and employing 86.5 percent of the work force in 2001. Between 1991 and 2001, exports of services grew at an average annual rate of six percent in real terms. Principal services sectors include import/export trade, financing, real estate and business services. These accounted for 17.9 percent, 10.6 percent, 6.1 percent, and 3.9 percent of GDP in 2001, respectively.

Manufacturing as a percentage of GDP has declined steadily as companies have shifted production facilities to lower cost locations in China and elsewhere. Manufacturing in 2001 accounted for about six percent of GDP and 10 percent of the work force, down from 18 percent and 28 percent, respectively, in 1990. The textile and clothing/apparel industries remain the backbone of Hong Kong's manufacturing sector. These industries employed 27.7 percent of the manufacturing work force and accounted for 52.4 percent, or US$10.3 billion, of Hong Kong's domestic exports in 2001. Other principal local industries include electronics, watches and clocks, and chemical and industrial machinery. Manufacturers continue to shift production facilities out of Hong Kong, primarily to China, to take advantage of lower labor and land costs.

(1) Tourism and Retail Sales

Tourism is a key sector of the economy and one of Hong Kong's largest earners of foreign exchange after the textile and apparel industries. It generated revenues of US$8.2 billion in 2001, up by 4.5 percent from 2000. Visitor arrivals totaled about 13.7 million in 2001, up by 4.6 percent. Tourist numbers rose strongly in the first four months of 2002, rising by 14.2 percent from the previous year to 4.9 million. This was due primarily to a surge in mainland Chinese tourists after Beijing, at Hong Kong's request, removed quotas on the number of mainland visitors. China accounted for 32.4 percent of Hong Kong's total arrivals in 2001, followed by Taiwan with 17.6 percent, Southeast Asia with 12.7 percent, Japan with 9.7 percent, and the United States with 6.8 percent. The volume of visitors from the United States in 2001 decreased to 935,717 from 966,008 in 2000. Hotel room occupancy rates dropped to 79 percent in 2001 from 83 percent in 2000. In April 2002, the hotel room occupancy rate was 87 percent.

Retail sales volume grew by 1.2 percent in 2001 (reflecting weak consumer demand), following an 8.1 percent increase in 2000. The largest increases in sales volume in 2001 were in consumer durable goods (up 14 percent), electrical goods and photographic equipment (up 10 percent) and fish, livestock and poultry (up 7.8 percent). Other retail segments showed volume decreases in 2001, including fruit and vegetables (down 11.4 percent), fuels (down 11.7 percent) and, jewelry, watches and clocks (down five percent). In March 2002, retail sales volume declined 1.4 percent from a year ago.

(2) Property

In 2001, average monthly rental prices for Grade A (the highest grade) office space in Central, Hong Kong's premier district, rose 15.3 percent from 2000, though rental prices trended downward in the second half of the year due to corporate downsizing and restructuring of I.T.-related business. Office rentals in Central averaged about US$5.6 per square foot per month, 30 percent lower than levels before the Asian financial turmoil. In 2001, prices for Grade A space in Wan Chai North, another popular commercial district for multinational companies on Hong Kong Island, grew by 10 percent. As of March 2002, Grade A office space in Central cost an average of US$4 per square foot, with prime space costing US$5-6 per square foot. Grade A office space in Wan Chai averaged US$3 and space in North Point went for US$1.6 per square foot.

The residential property market was sluggish in 2001, due to rising unemployment, flat nominal income growth and the uncertain economic climate. Market sentiment remained cautious in the first five months of 2002. The government has emphasized that it will continue to support a "stable" property market, that is, a market in which mass residential property prices rise slowly. The Peak, Wan Chai/Mid-levels, and the South Side of Hong Kong Island are the most popular living areas for expatriates. Rental prices in these areas in May 2001 had fallen some 30 percent from 1997's peak, with average rents of US$3.3 to US$5 per square foot for the Peak, US$2.8 to $3.8 for Wan Chai/Mid-levels, and $3 to $4.2 for the South Side.

(3) Infrastructure (construction, environment)

See Chapter 2 Section E below for a discussion of these sectors.

C. Government Role in the Economy

Similar to the period prior to reversion to China, the Hong Kong Special Administrative Region Government continues to pursue a generally non-interventionist approach to economic policy that stresses the predominant role of the private sector. The government became somewhat more proactive in recent years in support of high technology development. This included efforts to encourage applied research and development and support for industrial parks like the "Cyberport" and "Science Park" projects. In his 2002-03 budget speech, Financial Secretary Antony Leung suggested that the government should act as a "proactive market enabler." This will include investing in human resources, providing infrastructure that the private sector will not invest in, reducing government expenditure and securing foreign market access for local enterprises. Leung also said the government would facilitate the movement of Hong Kong firms up the value-added chain in the financial services, logistics, tourism, and producer and professional services sectors. In addition, it would seek to leverage Hong Kong's traditional ties to the mainland by encouraging greater flows of people, cargo, information, and services.

Hong Kong has consistently supported an open multilateral trading system. The government is an active member of the World Trade Organization (WTO) and the Asia Pacific Economic Cooperation Forum (APEC). Hong Kong maintains no anti-dumping laws, countervailing duty laws, import quotas or tariffs. There are consumption taxes on a few items which apply equally to imports and local products. Hong Kong urges similar open trade policies for its neighbors and trading partners. Since July 1, 1997, Hong Kong has continued to enjoy a high degree of autonomy as a separate customs territory.

The tax system in Hong Kong is simple and tax rates are low. The highest income (salaries) tax rate is 15 percent. As a result of generous allowances under the law, 60 percent of the work force pays no salary tax at all. The business profits tax is 16 percent and is payable only on net profits arising in Hong Kong or derived from business performed in Hong Kong. There are no taxes on capital gains, dividends, or interest. Other government revenue sources include a stamp duty on property and stock market transactions, betting duties, an estate duty and a hotel accommodation tax. Under the Sino-British Joint Declaration and China's Basic Law on Hong Kong, Beijing cannot tax Hong Kong or otherwise extract revenue from the HKSAR Government. Beijing also plays no role in formulating Hong Kong's budget and fiscal policies.

Hong Kong Government-funded core projects have fueled the development of Hong Kong's economy. In Fiscal Year 2002, which ended March 31, 2002, public expenditure accounted for about 22 percent of GDP. Generally prudent fiscal management and ample reserves have traditionally obviated the need for the Hong Kong Government (HKG) to incur debt to finance expenditures. The Hong Kong Monetary Authority (Hong Kong's de facto central bank) had a total of US$14.6 billion in Exchange Fund bills and notes outstanding at year-end 2001. The bills and notes are used as instruments of monetary policy and are a principal means by which the HKG has worked to develop a local debt market. They are not used to finance expenditures.

D. Balance of Payments Situation

In 2001, Hong Kong recorded an overall balance of payments surplus of US$4.7 billion, compared to US$10 billion in 2000. The current account registered a surplus of US$12 billion in 2001, equal to 7.4 percent of GDP. This was the net effect of a visible trade deficit of US$8.3 billion, an invisible trade surplus of US$17.3 billion, a net inflow of factor incomes of US$4.6 billion, and a net outflow of current transfers of US$1.7 billion.

E. Infrastructure Situation

Hong Kong's modern and efficient infrastructure supports Hong Kong's role as a trade entrepot and regional financial and services center. Rapid growth has placed severe demands on that infrastructure, requiring major new investments, particularly for transportation and shipping facilities. Hong Kong's new airport and airport railway opened on July 6, 1998. All the related roads, bridges and tunnels were completed in advance of the opening. Hong Kong has plans to invest US$30 billion over the next five years with the goal of enhancing its competitiveness as a regional center. Significant elements include a planned expansion of container terminal facilities, additional roadway and railway networks, new town developments and community facilities and environmental protection projects.

(1) Airport

Hong Kong's new international airport at Chek Lap Kok handles each day an average of 539 flights, 87,745 passengers and more than 5,683 tons of cargo. There are 65 international airlines operating some 3,800 scheduled flights per week between Hong Kong and 130 cities around the world. Hong Kong is a major gateway to China. There are direct flights from Hong Kong to nearly 40 mainland cities and the demand for services to China is growing. In 2001, the Hong Kong International Airport ranked fifth in the world in terms of international passenger throughput and first in terms of cargo handled.

With 24-hour operations, two all-weather runways, an ability to cater to all types of commercial aircraft, and high-speed transport links from the terminal to the city, Hong Kong International Airport appears to be well positioned to cater to Hong Kong's aviation needs in the coming decades.

In March 2001, the Marine Cargo Terminal, a multi-model transport hub, began operations. The terminal provides vessel services between 16 ports in the Pearl River Delta and the airport. The Airport Authority also awarded a contract in February 2001 to build a logistics center and is considering a new express cargo facility. While the airport is now completed and fully operational, the Airport Authority has plans for other commercial developments to boost revenues. The Hong Kong Civil Aviation Department is in the early stages of a complete upgrade of its air traffic control system.

(2) Shipping and Port Activities

Hong Kong enjoys one of the best natural deep-water ports on the Chinese coast. With continued high economic growth and industrialization in China, the development of deep water ports at Yantian and Gaolan in south China should complement Hong Kong's facilities over the medium term. Over the longer term, the Hong Kong port will face increased competition from Singapore, Shenzhen and Shanghai, with one of the results being greater efficiencies in service.

Hong Kong's container port is one of the world's busiest. In 2001, Hong Kong's eight, privately-operated container terminals and mid-stream operators handled 17.8 million, twenty-foot equivalent units (TEUs) of cargo, a 1.7 percent decrease from 2000.

Given long-term growth projections, Hong Kong expects that it will require additional container terminals. There are currently eight terminals with 19 berths. Hong Kong is building its ninth container terminal (CT 9), on Tsing Yi Island opposite the eight existing terminals at Kwai Chung. The first part of this six-berth, 2.6 million TEU capacity container terminal is expected to be completed by December 2004, a delay of 14 months from the target completion date of May 2002. The delay is due to environmental problems arising from the dumping of contaminated mud. The Hong Kong Government has also made provisions for port facilities (CT 10 & 11) on reclaimed land on Lantau Island. Also, responding to the increased container traffic from the Pearl River waterways, Hong Kong's first river trade terminal was completed in 1999. The river trade terminal occupies 65 hectares with a quay length of 3,000 meters, and is capable of handling 1.3 million TEUs of river trade cargo a year.

(3) Roads and Railroads

Hong Kong's roads have one of the highest vehicle densities in the world. In March 2002, there were 523,747 licensed vehicles and about 1,911 kilometers of roads, or 274 vehicles per kilometer of road. This high vehicle density, combined with difficult terrain and high +ensity building development, poses a constant challenge to transport planning, road construction and maintenance. To cope with worsening traffic congestion, largely due to the rapid growth in the number of private cars, the Highways Department has launched an extensive road construction program. The department has budgeted US$ 5.9 billion for road projects between fiscal year 2001-2006, creating about 20,000 job opportunities.

Hong Kong is serviced by three major railway systems. The Mass Transit Railway Corporation (MTRC) operates a five-line metro system, including the 34km Airport Express. The Kowloon-Canton Railway Corporation (KCRC) operates a 34km line that services the new towns in the Northeastern New Territories and also provides a border crossing and freight service into China. In addition, KCRC also operates a Light Rail Transit System in the Northwestern New Territories.

Hong Kong is working on a massive expansion of its rail system. The investment in Hong Kong's domestic and cross-boundary rail networks in the next decade is expected to exceed in scale the US$20 billion spent on the Airport Core Program. Three major domestic passenger rail projects are already at various stages of construction. Of these, KCRC is moving rapidly with West Rail Phase I, and gearing up for extensions of its existing East Rail. In parallel, MTRC is pressing ahead with an existing rail line extension (Tseung Kwan O Extension) to service a new town in East Kowloon. A second cross-border passenger service and a second cross-harbor rail link are also high on the Hong Kong Government's railway network development priority list.

(4) Environment

The Hong Kong Government is making a dedicated effort to improve the city's environment. In 2001, total government expenditure devoted to environmental protection work amounted to US$1.17 billion. Out of this amount, US$340 million or 29 percent of the total was for the design, construction and operation of wastewater collection, treatment and disposal facilities. Environmental protection legislation enforcement, sewage and waste disposal programs development, pollution control planning and waste treatment services provision used up US$324 million or 28 percent of the total, and made up the second largest expense category. Spending on municipal waste collection services was US$222 million or 19 percent of the total. In 2002, estimated government spending on the environment will increase by four percent over 2001.

The Harbor Area Treatment Scheme (HATS), formerly the Strategic Sewage Disposal Scheme is by far the largest of all the environmental infrastructure projects in Hong Kong. Phase I of HATS, which provides for the collection and primary treatment of 70 percent of Hong Kong's sewage before discharging into the inner harbor, has been completed in December 2001. To further protect the marine environment, the Hong Kong Government is undertaking various studies to determine the level of treatment and technology requirements of future sewage systems.

The Hong Kong Government has been developing tighter vehicle emission standards as well as encouraging the use of cleaner fuel to improve the city's air quality. With the provision of Government grants, more than 80 percent of all taxis have already switched to LPG and the government plans to replace the whole fleet of 6,300 diesel light buses with LPG light buses by 2007. Together with the tightening of sulfur content of motor diesel to 0.005 percent, diesel related pollutants dropped between six to eight percent in 2001. The Government is also working with the Guangdong Provincial Government in an attempt to combat regional air pollution.

The Waste Reduction Framework Plan (WRFP), sets out the various waste reduction and recycling initiatives the government has put in place. On a daily basis, Hong Kong generates more than 16,800 tons of municipal waste. With the current generation rate, Hong Kong's three existing landfills will be full within the next 10 to 15 years. To elevate the pressing problem, the Government is now embarking on an intensive program to provide recycling facilities, but ultimately, Hong Kong will need new waste treatment or disposal facilities.

F. Macau Economic Scene

Macau, a thirteen square mile enclave of approximately 440,000 persons, became a Special Administrative Region of the People's Republic of China on December 20, 1999 after 450 years as a Portuguese colony.

U.S. business interests in Macau are modest. There are approximately 600 Americans residing in Macau, engaged in business, academic and missionary work. The United States is Macau's most important foreign market, taking nearly 48.2 percent of Macau's total exports, while imports from the United States amount to 4.2 percent of Macau's total imports.

Driven by increased tourism and gambling activity, Macau's real GDP in 2001 grew by 2.1 percent compared with a 4.6 percent in 2000. Nominal GDP was US$6.2 billion. Deflation continued in 2001, as prices declined two percent compared with a drop of 1.6 percent for 2000. Unemployment was 6.4 percent in 2001 compared with 6.8 percent in 2000. The Macau government's fiscal position is strong due to the significant tax revenue generated by gambling activities. Macau has no public debt.

Macau's most important industries are gambling, tourism and textiles. Textile exports account for nearly 83.9 percent of all merchandise exports. Macau ran a negative trade balance in 2001 of US$86 million compared with a trade surplus of US$ 283.4 million in 2000, with total exports of US$2,292 million and imports of US$2,378 million. Exports decreased by 9.4 percent while imports rose 5.8 percent.

The Macau government awarded gambling concessions to two companies with U.S. interests in February 2002, thereby ending a 40-year gambling monopoly held by a local Macau company. This opening of the gaming sector is expected to lead to significant new investment in casinos, hotels, and related facilities. It should dramatically raise the U.S. business profile in Macau and is the centerpiece of the government's efforts to transform Macau into a Las Vegas-style gaming, convention, and family-oriented holiday destination. Macau also hopes to leverage its well-developed infrastructure, relatively low rents, warehouse capacity, and well-educated population to become a gateway to China.

Table 1: Macau – Estimates for Major Indicators (real growth rate percent change)

	1999	2000	2001
Real GDP	-3.0	4.6	2.1
Inflation	-3.2	-1.6	-2.0
Private Consumption	1.7	1.8	2.8
Public Consumption	9.5	-12.8	1.6
Gross Fixed Capital Formation	-9.2	-28.3	-7.2
-- Public Sector	-	-	-
-- Private Sector	-	-	-
Unemployment	6.4	6.8	6.3
Trade Balance (US$ MN)	160.0	283.4	-86.5

Table 2: 1999-2001 Nominal Trade Figures (US$ millions)

	1999	2000	2001
Total Good Exports	2,197.5	2,547.6	2,299.4
Domestic Exports	1,880.6	2,135.1	1,883.0
Re-exports*	317.0	412.5	416.4
Total Services Exports	-	-	3,759.7
Total Goods Imports	2,037.5	2,262.2	2,386.1
Macau/U.S. Trade
-- Imports from U.S	103.8	102.4	99.2
-- Exports to U.S.	1,013.1	1,229.6	1,108.7

* Converted from Patacas using average yearly exchange rates of 7.992, 8.026 and 8.034 for years 1999, 2000 and 2001 respectively.

Sources: Based on compilation by Research Department of the Macau Economic Services Bureau.

G. Pearl River Delta – Hong Kong's Hinterland

Located in the southern part of Guangdong Province, the Pearl River Delta (PRD) covers an area of 42,821 sq. km and is home to 47.8 million people. Its GDP is US$258 billion and Shenzhen, one of its major cities, boast of a per capital GDP of US$4,801, enough wealth to allow seven out of ten of its mainland households to own a flat or house and one in five to have a car. Last year, total exports from the region were US$289 billion; making the PRD's economy about the size of Malaysia and bigger than Vietnam or the Philippines. For the past decade the eight mainland cities that are the core of the PRD have accounted for approximately one-third of China's foreign direct investment (FDI), about US$74 billion. What is unusual about this region versus other economically vibrant regions in the mainland is that its growth has been fueled mainly by the private sector, not government expenditures.

Hong Kong has been a big part of this boom. Since the early 1980's, much of Hong Kong's manufacturing base has moved to the Pearl River Delta in search of lower-cost land and labor. As a result, 50,000 Hong Kong enterprises now own and manage a far-reaching network of activities in the area employing nearly 6 million people (20 times the size of Hong Kong's own manufacturing workforce). Most of these companies are SMEs that are able to adapt quickly to market changes but also not commanding the access or leverage larger entities have with local authorities. The majority of the Hong Kong investment that flows into China continues to be directed at the Pearl River Delta. In 1998, Hong Kong accounted for 70 percent of Guangdong's FDI. The relationship is a win-win situation. The assembly of goods takes place in the Pearl Delta but the high value-added elements such as management, design, quality control, and finance remain in Hong Kong. Shifting its manufacturing base has also allowed Hong Kong's economy to focus on the service sector, which now accounts for 83 percent of the employed population in Hong Kong and brings with it higher paying jobs. Products formerly known around the world as "Made in Hong Kong" could now rightly be marked "Made By Hong Kong."

The PRD's Cantonese speaking population is heavily influenced in forming its tastes and fashions by Hong Kong's Cantonese language media. According to Hong Kong public relations agencies at least 20 percent of Hong Kong broadcast advertising is directed towards mainland consumers. This trend in targeting the mainland customer is consistent with the recent shift as Hong Kong based companies look to the PRD not only as a low cost manufacturing base, but more and more as a market in and of itself. For example, the Hong Kong office of the convenience store 7-11 has finalized plans to open 300 outlets through out Guangdong Province while Circle K's Hong Kong owners opened its first store in Guangzhou last year. It plans to open 100 more in the PRD in the next year. Other leading Hong Kong restaurants and clothing chains are also looking at opening up branches.

The cargo numbers illustrate the increase in trade that has taken place between the two regions. Cargo shipped between Hong Kong and the Pearl River Delta region increased to 47,534 tons in 2000 up from 28,732 million tons in 1995. The Hong Kong Port and Maritime Board expects river trade to increase to 70 million tons by 2005 and 97 million tons by 2020.

The Pearl River Delta's infrastructure is constantly changing. At the top of the list of priorities for the region is infrastructure that will better integrate Hong Kong and the region including: the construction of the Shenzhen Western Corridor; a 5.1 km bridge from Tuen Mun to Dongjiaotou; a new logistic center for the Shenzhen airport; a light rail to run from Shenzhen to Guangzhou; and an underground subway that will link Shenzhen's underground to both Hong Kong's and Guangzhou's. In addition, Guangdong's telecom infrastructure is the pride of the nation with more then 24 million mobile subscribers, 16 percent of China's total, and over 10 percent of China's 34 million Internet users, more than any other area. All of this rapid development provides opportunities for U.S. companies

Despite the economic interdependence that exists, China's cumbersome and non-transparent regulatory system continues to hamper some areas of cooperation. With several competing jurisdictions, resource allocation is often not as efficient as it could be. This is one of the main reasons U.S. companies, particularly SMEs have been successful in the region by linking up with Hong Kong SMEs to market their products and services to this dynamic region that is fueling China's export growth

CHAPTER 3 POLITICAL ENVIRONMENT

A. Nature of Political Relationship with the United States

The United States and Hong Kong maintain close and cooperative relations. Hong Kong is our fifteenth-largest trading partner overall. U.S. direct investment in Hong Kong through 2001 totaled nearly US$29.4 billion on a historic cost basis. The United States maintains a wide number of cultural and educational exchanges with Hong Kong, and enjoys excellent cooperation in law enforcement matters. Over 50,000 American citizens reside in Hong Kong and over 1,100 U.S. companies have offices in Hong Kong.

B. Major Political Issues Affecting the Business Climate

Hong Kong became a "Special Administrative Region" (HKSAR) of the People's Republic of China on July 1, 1997. The Sino-British Joint Declaration, signed in 1984, and the Basic Law of the HKSAR, passed by China's National People's Congress in 1990, form the legal basis for China's "One Country, Two Systems" guarantees for Hong Kong. The HKSAR has a high degree of autonomy, and enjoys independent executive, legislative and judicial power. The HKSAR Government negotiates bilateral agreements (then "confirmed" by Beijing), and makes major economic decisions, on its own. The central government in Beijing is responsible only for foreign affairs and defense of the HKSAR.

Since reversion, the HKSAR has maintained its capitalist economic and trade systems, retained the status of a free port and continued a free trade policy with free movement of goods and capital. It retains its status as an international financial center. It formulates, on its own, monetary and financial policies and safeguards the free operation of business and financial markets. The Basic Law states that the HKSAR will maintain its own currency and use revenues exclusively for its own purposes. The Hong Kong Dollar continues to be freely convertible and foreign exchange, gold and securities markets continue to operate as before. Systems currently in place, including Hong Kong's economic regulatory and supervisory framework, have remained unchanged.

C. Brief Synopsis of the Political System, Schedule for Elections, and Orientation of Major Political Parties

When Hong Kong became a Special Administrative Region of China in July 1997, the Basic Law guaranteed for 50 years the continuation of the rights and freedoms that Hong Kong residents already enjoyed: in essence, the continued rule of law, and the maintenance of Hong Kong's capitalist system and the life-style of the Hong Kong people. Hong Kong's legal system, including the independence of the judiciary and obligation of the executive authorities to abide by the law, has also continued. Beijing is only responsible for foreign affairs and defense of the HKSAR.

Hong Kong is a free society with legally protected rights. Hong Kong's human rights record is very good. The police force is under civilian control. A Chinese People's Liberation Army garrison in Hong Kong has no responsibility for routine internal security. Executive powers are vested in the Chief Executive, C.H. Tung, who was re-selected in 2002 by an 800-person selection committee for a second five-year term beginning July 1, 2002. On June 24, the Hong Kong Government announced the line-up of the new government of the Special Administrative Region effective July 1 -- principal officials, executive councilors, and permanent secretaries. The announcements reflect the creation of a layer of politically-appointed "ministers" between the Chief Executive and the Civil Service. It also revamps the Executive Council, making it more similar to the U.S. Cabinet by including all the heads of bureaus. The judiciary is an independent body, which operates according to the precepts of the Common Law, with certain variations. The Basic Law (Article 8) stipulates that the laws in force in Hong Kong before reversion, except for any which contravene the Basic Law, remain in force. The Court of Final Appeal (CFA) came into existence on July 1, 1997 to replace the British Privy Council as the final adjudicator of cases brought in Hong Kong courts. Under the Basic Law, the power of interpretation of the Basic Law is vested in China's NPC Standing Committee, but Hong Kong courts are authorized to interpret, on their own, provisions of the Basic Law that are within the limits of the autonomy of the HKSAR.

Hong Kong's Legislative Council exercises legislative power, but the Basic Law stipulates limits on the types of private member bills that may be tabled. Prior to 1985, members of the Legislative Council were not elected. Between 1985 and 1995, legislative seats appointed by the British-appointed Governor were eliminated and an increasing number of legislators were elected either directly from geographic constituencies or by professional, business, and labor groups, called functional constituencies. The first elected legislature under the SAR Government was elected in 1998 for a two-year term. Elections for the second Legislative Council took place in September 2000, this time for a four-year term. Under the Basic Law formula of 24 geographic seats, 30 seats from "functional" constituencies representing the professions, business sectors, and labor, and six seats from an electoral committee, pro-democracy candidates ended up with just over twenty seats out of sixty, despite the fact that they received a majority of the popular vote. The leading opposition political party is the pro-democracy Democratic Party, which received 35 percent of the vote in the September 2000 elections. The generally pro-China Democratic Alliance for the Betterment of Hong Kong (DAB) is the second leading party.

D. Macau Political Scene

Under the principle of "one country, two systems" specified in the 1987 Sino-Portuguese Joint Declaration, The Macau Special Administrative Region (SAR) enjoys a high degree of autonomy except in foreign affairs and defense. The Joint Declaration and Basic Law (the Special Administration's mini-constitution) specify that Macau's economy and way of life will remain unchanged for 50 years. After the handover, laws in force continued to apply. New laws were passed to provide for a new judicial system, including the establishment of a Court of Final Appeal. Macau's judiciary is independent.

The Macau SAR government is headed by Chief Executive Edmund Ho, who was chosen by a 200-member Selection Committee, in turn chosen by the Beijing-appointed Preparatory Committee. Macau held its first post-handover Legislative Assembly election in September 2001. Voters elected only 10 of Macau's twenty-seven legislators in direct elections in geographical constituencies. Ten were elected by interest groups. Seven were appointed by the Chief Executive. The elections were well run, open and fair. Pro-democracy groups made a stronger showing than expected. In contrast to the pre-handover system where both the Portuguese Governor and the Legislative Assembly exercised legislative power, only the legislature now has legislative power. However, the Basic Law stipulates limits on the types of private-member bills which may be tabled.

Macau's human rights record is generally good. The police force is under civilian control. A Chinese People's Liberation Army garrison in Macau has no responsibility for internal security. There were serious law and order problems before the handover, almost all related to organized crime violence. The new government, however, has made dealing with crime and corruption a priority, and its efforts, coupled with a clampdown on organized-crime activity on the Chinese side of the border, have resulted in a sharp decrease in organized-crime violence.

U.S. Immigration and Customs Enforcement (ICE) - U.S. Immigration and Customs Enforcement is the largest investigative arm of the Department of Homeland Security (DHS). ICE is responsible for combatting trade based money laundering, human trafficking and smuggling, illegal diversion of US srategic technology and commodities (e.g. weapons of mass destruction, chemical, biological, and nuclear proliferation) to proscribed nations, commercial fraud such as fraudulent textile transshipments, Intellectual Property Rights violations, smuggling of child pornography, and alien detection and removal. Address: 11th Floor, St. John's Building, 33 Garden Road, Central, Hong Kong. Inquiry hotline: (852) 2524-1136

For many American products and services, initial market penetration in Hong Kong does not require an investment of millions of dollars of company funds. Given that Hong Kong is a "free port" with virtually no duties or tariffs and that it has a wide ranging network of agents and distributors, a well-managed market penetration program with a moderate investment in market development is generally all that is required initially. Due to its open nature, however, Hong Kong is among the most competitive and price sensitive markets in the world. Companies considering entering this market should be aware that the Hong Kong business climate is extremely fast-paced. Decisions are made quickly, and companies need to be able to respond to inquiries immediately or they risk losing the market to faster moving suppliers.

Numerous American products and services can be found in Hong Kong, and throughout China. Many excellent agents and distributors for China are located in Hong Kong, although given China's size and diversity, it is usually necessary to work with different agents for different regions of China. Hong Kong companies are eager to talk to potential exporters and have a strong interest in representing good quality, competitively priced U.S. products from companies committed to the market. Commitment to the market is demonstrated in various ways but should include: quoting in metric, providing Chinese language material, responding quickly to inquiries, meeting relevant standards, and visiting the market for first hand understanding and relationship building.

A. Distribution and Sales Channels

One of the best ways to sell products in Hong Kong is through the use of agents or distributors. It is also an excellent way of minimizing the initial investment in the market. There is a wide range of companies that can serve as agents or distributors for U.S. firms. Other options for pursuing Hong Kong's market are establishing an office or partnering. Companies looking to sell equipment needing long term maintenance, technical support or installation, or who are seeking to become involved in infrastructure projects frequently seek to partner with local companies.

B. Use of Agents/Distributors/Finding a Partner

Working with agents and distributors in Hong Kong is very much like working with an agent in the United States. An agent takes orders in the supplier's name. Distributors act in their own name and may stock products purchased from the manufacturer for resale. The choice depends on the relationship with which the manufacturer/supplier is most comfortable and the nature of the business.

Hong Kong has no special legislation regarding agents and distributors. Virtually anything which both sides can agree to and put into a written contract is acceptable and enforceable, including restrictions on territory and a grace period for termination of the agreement. While not required by Hong Kong law, the more complex the contract, the more helpful legal counsel can be in drafting the text. Items that are often in the contract include:

Discussion of exclusivity and sales territories· (always a sensitive issue; business people should be careful about granting an exclusive agency too soon or in too large a territory if the agent is to cover beyond Hong Kong.)
Discussion of proprietary information (theft of· intellectual property is prohibited by local law, but prevention of piracy is always less expensive and more effective than post-facto legal action.)
Levels of sales activity – set specific targets and goals to qualify for maintaining or renewing the agreement
Time duration
Payment terms
Quality control – inspection – verification·
Rule of law – jurisdiction in the United States vs. Hong Kong (it is generally Hong Kong, but another location may be specified – usually for arbitration.)
Covenants restricting activity following cancellation of the contract.

There are many types of agents and distributors in Hong Kong, ranging from those who simply stock retail stores with standard items to agents who provide sales, engineering and technical support for complex systems. It is common for a single company to deal in a wide variety of products in a particular sector. Agents and trading companies may be less specialized than companies in a large economy like the United States, but the best ones are focused and have contacts in a general line of business.

C. Franchising

The concept of franchising has been catching on in Hong Kong for the past decade, in line with Hong Kong consumers becoming more affluent. The number of franchise operations in Hong Kong grew from 52 in 1992, to 128 in June 2002. Nearly 80 percent of the franchise operations in Hong Kong are of U.S. origin. Home-grow franchises have also developed, especially in catering and fashion wear. Many have expanded their franchises to South East Asia and China.

D. Direct Marketing

Hong Kong has a well-developed network of retail outlets. Supermarkets, department stores, convenience stores and modern shopping malls have become increasingly popular, because of their easy access, convenient location and seven-day availability. Consumers prefer buying products from retail outlets to buying products on-line, through mail order and direct marketing, as they consider retail shopping a leisure activity. Direct marketing accounts for less than one percent of total retail sales though it has increased in popularity following the economic slowdown in 1998. Many who lost their jobs turned to direct marketing while others who suffered pay cuts joined direct marketing companies to augment their incomes. Sales of direct marketing companies surged between five percent and 10 percent over the past few years. Many local companies, particularly Chinese herbal health supplement distributors, have adopted direct marketing.

The unavailability of homegrown e-commerce sites in the Chinese language in Hong Kong has limited the growth of on-line shopping. Because there is a well-developed retail distribution system and an abundance of conveniently located outlets, consumers here have no incentive to shop on-line; there is no price advantage and they cannot inspect products.

E. Joint-Ventures/Licensing

Joint-ventures or strategic alliances can be very helpful in entering the market, and are particularly important in competing for major projects. (For additional information on joint ventures, see Chapter 7 below, Investment Climate Statement.)

Licensing is increasingly common in the field of brand name product manufacturing and marketing.

F. Steps to Establishing an Office

Foreign companies are allowed to incorporate their operations freely in Hong Kong, to register branches, or to set up representative offices. There is no restriction on the ownership of such operations. Company directors are not required to be citizens of, or resident in Hong Kong. Reporting requirements are straightforward and not onerous. There is no distinction in law or practice between investment by foreign-controlled companies and those controlled by local interests. There are no disincentives to foreign investment such as limitations on the use or transfer of foreign currency, or any system of quotas, performance requirements, bonds, deposits, or other similar regulations. High labor and rental costs are the major disincentives to establishing a presence in Hong Kong.

To incorporate or register an overseas company, the company should first file statutory declarations with the Registrar of Companies. It should then submit necessary documents to the Administration Section of the Companies Registry. Specific information on required documents can be found on the Companies Registry's web site (http://www.info.gov.hk/cr/handouts/index.htm).

Companies seeking more information on establishing an office in Hong Kong may contact:

Overseas Companies Section
Companies Registry
29/F, Queensway Government Offices
66 Queensway
Hong Kong
Tel: (852) 2867-4655
Fax: (852) 2523-5629
E-mail: crenq@cr.gcn.gov.hk
Web site: http://www.info.gov.hk/cr

Another reference publication is "Establishing an Office in Hong Kong", an annual "how to" handbook with reviews of business services as varied as freight forwarding, law and architectural consulting, published by The American Chamber of Commerce in Hong Kong.

G. Selling Factors/Techniques

The major selling factors are the same as in the United States: price, quality, timeliness in delivery and service. Initial sales require more face-to-face contact as Asians generally place a premium on developing personal connections.

H. Advertising and Trade Promotion (including listing of Major Newspapers and Business Journals)

Many promotional vehicles are open to suppliers to introduce and develop their services in the Hong Kong market. These include:

Special trade fairs and exhibitions
Advertising in the media and other public relations activities
Seminars
In-store promotions
Joint promotions with wholesale and retail outlets

Hong Kong is a major conference and exhibition center. Hundreds of international exhibitions are held annually. The Hong Kong Convention and Exhibition Centre (operated by the quasi-governmental Hong Kong Trade Development Council), has approximately 500,000 square feet of exhibition space, including 300,000 square feet added in a major expansion completed in the summer of 1997. Also, a privately built facility, the International Trademart, opened in Kowloon Bay in early 1996 with 158,000 square feet of exhibition space. For more information about these exhibition facilities, please contact:

The Marketing Executive
Hong Kong Convention & Exhibition Centre
No. 1 Expo Drive
Wan Chai, Hong Kong
Tel: (852) 2582-8888
Fax: (852) 2802-7284

The Hong Kong International Trademart
No. 1 Trademart Drive
Kowloon Bay, Hong Kong
Tel: (852) 2620-2222
Fax: (852) 2620-2818

Television is a widely used medium with an estimated daily audience of 2.25 million households out of a population of nearly 6.8 million people. Hong Kong Television also reaches much of neighboring Guangdong Province in China, where it is very popular.

As one of the largest centers in the world for Chinese language publications, the territory produces more than 770 publications, including 59 newspapers (32 are Chinese, 12 English, five bilingual, six in other languages, and four news agency bulletins), and approximately 717 periodicals. Advertising agencies, including many of international standing, offer a full range of services in Hong Kong.

Suppliers should provide technical catalogs in English, and desirably in Chinese, for distribution to agents and firms. Company brochures are particularly useful when visiting Hong Kong for the first time. English-Chinese business cards are also helpful.

Newspapers:

South China Morning Post
South China Morning Post Publishers Limited
29/F, Dorset House, Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
Tel: (852) 2565-2333
Fax: (852) 2833-0067
E-mail: info@scmp.com
Web site: www.scmp.com

The Standard
The Standard Newspapers Ltd.
3/F, Sing Tao Building
1 Wang Kwong Road
Kowloon Bay
Kowloon, Hong Kong
Tel: (852) 2798-2829
Fax: (852) 2758-2778
Web site: www.thestandard.com.hk

Chinese Newspapers:

Apple Daily News
8, Chun Ying Street
Tseung Kwan O Industrial Estate West
Tseung Kwan O, N.T.
Hong Kong
Tel: (852) 2990-8590
Fax: (852) 2742-7639

Hong Kong Economic Journal
22/F, North Point Industrial Building
499 King's Road, North Point
Hong Kong
Tel: (852) 2856-7567
Fax: (852) 2811-1070

Hong Kong Economic Times
6-7/F, Kodak House II
321 Java Road, North Point
Hong Kong
Tel: (852) 2565-4288
Fax: (852) 2811-1926

Ming Pao Daily News
Ming Pao Newspapers Limited
15/F, Block A, Ming Pao Industrial Centre
18 Ka Yip Street, Chai Wan
Hong Kong
Tel: (852) 2595-3111
Fax: (852) 2898-3783
Web site: www.mingpao.com

Oriental Daily News
Oriental Press Centre
Wang Tai Road
Kowloon Bay, Kowloon
Hong Kong
Tel: (852) 2795-1111
Fax: (852) 2707-1122
Web site: www.orientaldaily.com.hk

Sing Tao Daily
Sing Tao Limited
3/F, Tower B, Sing Tao Building
1 Wang Kwong Road
Kowloon Bay, Kowloon
Hong Kong
Tel: (852) 2798-2323
Fax: (852) 2795-3022
E-mail: info@singtao.com
Web site: www.singtao.com

Trade Journals:

AmCham (Monthly)
American Chamber of Commerce in Hong Kong
1904 Bank of America Tower
Central, Hong Kong
Tel: (852) 2526-0165
Fax: (852) 2537-1682
E-mail: amcham@amcham.org.hk
Web site: www.amcham.org.hk

Asia Computer Weekly (ACW)
CMP Asia Ltd.
17/F, China Resources Building
26 Harbour Road
Wanchai, Hong Kong
Tel: (852) 2827-6211
Fax: (852) 2805-5696
Web site: www.asiacomputerweekly.com

Asian Business (Monthly)
TPL Corp. (HK) Ltd.
Block C, 10/F, Seaview Estate
2-8 Watson Road
North Point, Hong Kong
Tel: (852) 2566-8381
Fax: (852) 2508-0197
E-mail: abeditor@far-east.com.hk
Web site: www.asianbusinessnet.com

Building Review
Building Review Publishing Co.
8/F, Shiu Fung Commercial Building
51-53 Johnston Road
Wan Chai, Hong Kong
Tel: (852) 2527-1282
Fax: (852) 2865-6529
E-mail: brpublishing@ctimail.com

Construction & Contract News (Monthly)
China Trend Building Press Ltd.
Room 901, C.C. Wu Building
302 Hennessy Road
Wan Chai, Hong Kong
Tel: (852) 2802-6299
Fax: (852) 2802-6458
E-mail: trend@building.com.hk
Web site: www.building.com

Far Eastern Economic Review (Weekly)
Review Publishing Company Limited
25/F, Citicorp Center
18 Whitfield Road
Causeway Bay, Hong Kong
Tel: (852) 2508-4300
Fax: (852) 2503-1537
E-mail: review@feer.com
Web site: www.feer.com

Fortune
CCI Asia-Pacific Ltd.
23/F, Tianjin Building
167 Connaught Road West
Hong Kong
Tel: (852) 2858-0789
Fax: (852) 2857-6309
E-mail: marketing@cci.com.hk
Web site: www.cci.com.hk

Hong Kong Entrepreneur (monthly)
The Chinese Manufacturers' Association of Hong Kong
CMA Building
64 Connaught Road Central
Hong Kong
Tel: (852) 2545-6166
Fax: (852) 2541-4541
E-mail: info@cma.org.hk
Web site: www.cma.org.hk

Hong Kong Industrialist (Monthly)
Federation of Hong Kong Industries
4/F, Hankow Center
5-15 Hankow Road
Tsimshatsui, Kowloon
Hong Kong
Tel: (852) 2732-3188
Fax: (852) 2721-3494
E-mail: fhki@fhki.org.hk
Web site: fhki.org.hk

Logistics HK (Monthly)
Hong Kong Productivity Council
HKPC Building
78 Tat Chee Avenue
Yau Yat Chuen, Kowloon Tong
Kowloon, Hong Kong
Tel: (852) 2788-5678
Fax: (852) 2788-5900
E-mail: hkpcenq@hkpc.org
Web site: www.hkpc.org

Machinery & Materials
B & I Publication Co. Ltd.
Unit 1223, HITEC
1 Trademart Drive
Kowloon Bay, Kowloon
Hong Kong
Tel: (852) 2865-2633
Fax: (852) 2866-1770
E-mail: hkmm@hkmachine.com.hk
Web site: www.hkmachine.com.hk

I. Pricing Product

If possible, quote in metric, on a deliverable basis to Hong Kong (i.e. CIF or C&F rather than FOB). Hong Kong companies have many options, so American companies must make it as easy as possible to buy American.

J. Sales Service/Customer Support

Some sort of local presence, whether it is a branch office or an agent or distributor, is very important in getting established in the market. Business in Hong Kong (and elsewhere in Asia) requires relationships that can only be developed with some kind of local presence. Prompt after-sales service is also crucial to succeeding in this very competitive market.

K. Selling to the Government

The Government Supplies Department (GSD) is the central purchasing, storage and supply organization for the Government of the Hong Kong Special Administrative Region, serving over 80 government departments and certain non-government organizations. The GSD normally purchases by open tender, with decisions based on compliance with tender specifications, competitiveness in price, back-up service and delivery. The GSD gives no preference to any particular source of supply from any country or organization. GSD spent US$834 million in 2001, with American products winning approximately 35.53 percent of the total procurement contracts (about US$296 million). Hong Kong joined the WTO Agreement on Government Procurement in May 1997. Tenders are now covered by the Agreement on Government Procurement of the World Trade Organization (WTO GPA), and a Review Body on Bid Challenges has been set up by the Government to handle challenges made against alleged breaches of the WTO GPA. Invitations to open tender are published in the Government of the Hong Kong Special Administrative Region Gazette and in selected Hong Kong newspapers. Tender notices are also published on the Internet in the GSD Home Page (http://www.info.gov.hk/gsd/index.htm). Tenderers usually have at least three weeks to prepare their offers. For procurement covered by the WTO GPA, the time allowed for bid submission is 40 days. Tenders normally have a 90-day validity period unless otherwise indicated. Payment to overseas suppliers is usually effected by telegraphic transfer, bank draft or letter of credit upon acceptance of the goods. Contract awards with the names of successful tenderers and contract sums are published monthly in the Government Gazette and on the Internet.

For information about a subscription to the Government of the Hong Kong Special Administrative Region Gazette contact:

Information Officer
Publications Sales Section
Information Services Department
Room 402, Murray Building
Garden Road
Central, Hong Kong
Tel: (852) 2842-8839
Fax: (852) 2598-7482
E-mail: puborder@isd.gcn.gov.hk

The GSD maintains lists of registered suppliers for issuing tender invitations. Any company not currently registered with the GSD wishing to be considered for inclusion in these lists may apply in writing to the Director of Government Supplies. Companies are required to provide basic information about their organizations and the goods they offer, such as the business registration certificate, company profile, annual report and product catalogues. The GSD evaluates this information and those companies that are found acceptable will be included on the lists. The GSD offers the Electronic Tendering System (ETS) for firms interested in obtaining and submitting tender documents on-line. GSD-registered suppliers can download tender documents, submit tender offers and related questions. To access ETS, firms need to subscribe. Details are available in GSD-ETS's web site at http://www.ets.com.hk/.

The U.S. Commercial Service at the U.S. Consulate General in Hong Kong regularly reports on government tenders. These reports are available via the NTDB. For information, call the U.S. Department of Commerce at 1-800 stat-usa or visit web site: www.stat-usa.gov.

Companies seeking more information on the GSD are encouraged to contact:

The Director of Government Supplies
Government Supplies Department
10/F, North Point Government Offices
333 Java Road
North Point, Hong Kong
Tel: (852) 2231-5100
Fax: (852) 2510-7904
http://www.info.gov.hk/gsd/index.htm

L. Protecting Your Product from IPR Infringement

The best protection for an American company is to aggressively market in Hong Kong. By using a good local agent, American manufacturers or suppliers can make their product legally available. Dealers have a strong incentive to stop any piracy, and with good local connections, have a better chance of making that happen than an American company which is not actively participating in the market. The chief law enforcement body for Intellectual Property Rights (IPR) is the Hong Kong Customs and Excise Department. However, protecting copyrights or trademarks takes vigilance, and even with the U.S. Government vigorously pressing Hong Kong on this issue, enforcement is still dependent on reporting incidents of product piracy to the authorities and, in some cases, providing evidence in court. For more information on intellectual property legislation and registration, see Chapter 7 Section G, below.

M. Need for a Local Attorney

Hong Kong follows the Common Law System and disputes which cannot be resolved between the interested parties are commonly pursued through the court system. Attorneys are needed for most court proceedings and are extremely expensive.

CHAPTER 5 LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENTS

Leading sectors for U.S. exporters to Hong Kong are closely linked to those of China's Pearl River Delta region, due to geographical proximity and Hong Kong's role as a staging point for new-to-China-market American companies. Hong Kong's advantages (such as the rule of law, a robust financial system and a fully convertible currency) are not easily duplicated. Small and medium-sized companies, in particular, will continue using Hong Kong as a base to trade with China, and Hong Kong firms stand ready to represent U.S. companies as distributors or agents in China. With the second highest per capita income in Asia, Hong Kong's market offers good opportunities for U.S. exporters. Medical and security products are among the most promising sectors for U.S. exporters due to growing health and safety concerns in the region. Interest in information technology and telecommunications products should remain strong given their high priority in the Hong Kong Government's agenda. Other "best prospects" sectors include: cosmetics, franchising, air conditioning and parts, plastic materials and resins, building equipment and railroad equipment.

A. Best Prospects for Non-Agricultural Goods and Services

Following is a list of the non-agricultural goods and services best prospects sectors for U.S. exporters to Hong Kong:

No.	Code	Sector Description
1	SEC	Security and Safety Equipment
2	MED	Medical Equipment
3	CPT	Computers and Peripherals
4	COS	Cosmetics and Toiletries
5	ACR	Air Conditioning and Parts
6	LAB	Laboratory and Scientific Instruments
7	PMR	Plastic Materials and Resins
8	BLD	Building Products
9	ELC	Electronic Parts and Components
10	FRA	Franchising
11	POL	Pollution Control Equipment
12	CSF	Computer Software
13	TEL, TES	Telecommunications Equipment and Services
14	RRE	Railroad Network

Note: All Figures in US$ millions unless otherwise indicated.

1. Security and Safety Equipment (SEC)

The security and safety equipment market in Hong Kong is very promising. Bank robberies doubled in 2001. With the unemployment rate reaching a historic high of 7.4 percent in the second quarter of 2002, property crime rates may continue to rise.

Hong Kong's changing lifestyle and the growing concern for fire safety also have fueled a high demand for security and safety products. With the rising concern for home security, the general public has been investing in security products such as CCTV's, alarms and vehicle tracking systems to protect their possessions.

Also, with an increasing number of women entering the work force and longer working hours, home security products are gaining in popularity. Systems with small digital cameras and electronic transmission devices, which allow distant monitoring via the Internet, are in great demand.

The Hong Kong Government has made a dedicated effort to improve the fire safety of all buildings, particularly those over 20 years old. These efforts include establishing the US$25 million Fire Safety Improvement Loan Scheme to help commercial building owners improve their fire safety.

Year	2000	2001	2002
Total Market Size	260	73	130
Total Local Production	160	180	160
Total Exports	645	810	720
Total Imports	745	703	750
Total Imports from the U.S.	77	66	75

All figures are in US$ million. The above statistics are unofficial estimates.

2. Medical Equipment (MED)

U.S. medical products command a 25 percent share of the Hong Kong market. Total medical equipment imports in 2001 were US$801 million. The Hong Kong Government's Hospital Authority (HKHA) is the principal customer for medical equipment procuring all the equipment for Hong Kong's 44 public hospitals via open tender. Best prospects for American suppliers include medical device/equipment for diagnosing and treating Malignant Neoplasm, heart disease, cerebrovascular diseases, chronic liver disease and cirrhosis, and septicaemia. Other promising areas include equipment for diabetes mellitus, respiratory disease, cancer treatment, blood and virus analyzer, X-ray equipment, as well any equipment with leading-edge technology.

In recent years, the Hong Kong Government has placed more emphasis on rehabilitation for the disabled and for the elderly. Best prospects for rehabilitation equipment are: assessment equipment and tools, functional equipment and tools, therapeutic equipment for heart disease and for pain reduction and exercise equipment.

American, Germany and Japanese equipment dominates the Hong Kong medical equipment market. German products are extremely popular with the medical industry in Hong Kong due to their durability and reliability. Japanese products are usually compact, versatile, and competitive-price. U.S. companies must be able to provide after-sales service.

Year	2000	2001	2002 (est)
Total Market Size	220	244	256
Total Local Production	48	56	61
Total Exports	552	613	686
Total Imports	724	801	881
Total Imports from the U.S.	183	201	221

All figures are in US$ million. The above statistics are unofficial estimates.

3. Computers and Peripherals (CPT)

Estimated IT spending in Hong Kong in 2001 totaled US$2.4 billion, a drop of eight percent over the previous year. Spending on computer hardware and parts in 2001 was estimated to be US$1.24 billion. Spending on IT services and packaged software was US$850 million and US$310 million, respectively. It is forecasted that IT demand in Hong Kong should bounce back by 2003 with double-digit annual growth. Despite the commercial downturn, industry analysts still see potential in the area of e-business and IT services.

Despite the failure of numerous Hong Kong-based Internet companies in 2001, consumer Internet usage continued to grow in Hong Kong. According to a government survey conducted in 2001, 1.25 million households or 61 percent (comparing to 50 percent in 2000) of all households in Hong Kong had PCs at home and 80 percent (compared to 36 percent in 2000) had their PCs connected to the Internet. Consumers are making use of the Internet to send emails, surf the web, conduct research and make on line purchases. The survey estimated that around six percent of all persons aged 15 and above had used one or more types of online purchasing services for personal matters in the 12 months before the survey. On the business side, over one third of businesses in Hong Kong have Internet connections. About 12 percent of businesses had delivered their goods, services or information through electronic means in 2001, four percent higher than that in 2000.

The SAR Government has played an active role in driving the Internet and electronic commerce usage in Hong Kong. It has committed to becoming a model user of information technology and to transforming itself into an electronic Government. The plan is to provide e-option for 90 percent of the public services that are amenable to the electronic mode of service delivery by the end of 2003. There is also a plan for an e-option through mobile channels. Examples of online services include the submission of tax returns, renewal of driving licenses, payment of government bills, voter registration and submission of government tenders. Estimated government IT spending in 2001/2002 is US$408 million.

In addition, the Government has just awarded a tender for provision of "Smart Identity Card" for all citizens in Hong Kong starting in May 2003. This card will contain identity information and provide support for value-added applications from government and third-party businesses. This will greatly enhance e-government as well as offering excellent opportunities for products revolving around the new system, such as biometric readers, and smart card readers.

Although Hong Kong is a relatively small market for U.S. high-tech exports, many consider Hong Kong as a gateway into the mainland China market. A substantial amount of IT products imported to Hong Kong is re-exported to China. China was Hong Kong's largest IT export market, constituting over 40 percent of Hong Kong's total IT exports in 2001. China's demand for IT products and services is expected to grow significantly because of China's accession into the WTO and the resulting tariff decreases.

To conclude, the market potential that wireless communication, Internet and electronic commerce can generate in Hong Kong is significant. There is good potential for growth and great potential for U.S. firms. U.S. firms, as technology leaders should continue to command a dominant market share in Hong Kong.

Business opportunities for U.S. companies:

Internet Security Products, including firewalls, encryption· products, antiviral and PKI products.
Network Solutions: Virtual Private Networks including extranet, intranet and remote access VPNs. Network management devices.
Wireless LAN
Wireless mobile devices: PDAs
Broadband Internet access devices

Year	2000	2001	2002
Total Market Size	1,353	1,240	1,353
Total Local Production*	463	287	352
Total Exports	12,648	14,711	15,446
Total Imports	13,538	15,664	16,447
Total Imports from the U.S.	2,016	2,286	2,494

All figures are in US$ million. The above statistics are unofficial estimates.
* This could be due to obsolete goods or smuggling into China

4. Cosmetics and Toiletries (COS)

Hong Kong's cosmetics and toiletries imports were about US$1 billion in 2001. The United States had a 12 percent market share, owing to a favorable quality image, especially for products at the medium to high-end price range. U.S. brands such as Estee Lauder, Clinique, Avon, Crème de La Mer, Kiehl's and Philosophy are popular in the market.

Hong Kong consumers prefer imported cosmetics and U.S. exporters face keen competition from Japan and Europe. To maintain their competitiveness, U.S. suppliers have begun focusing their marketing efforts on products that Asian consumers favor, especially skin-whitening and facial spots reducing treatments for use in beauty salons and by dermatologists.

Tourism, the territory's second largest earner of foreign exchange, also provides a substantial market for cosmetics and toiletries. Tourists to Hong Kong make cosmetics and perfumes their prime shopping targets.

To assist U.S. exporters, the U.S. cosmetics industry organizes a pavilion at the annual Cosmoprof Asia Show. U.S. companies have had tremendous success at this show. Hong Kong is important both as a major market and as a springboard for exporting U.S. cosmetic products to the region, particularly to China and SE Asia.

Year	2000	2001	2002
Total Market Size	597	503	476
Total Local Production	91	73	51
Total Exports	546	374	299
Total Imports	1,052	804	724
Total Imports from the U.S.	114	100	108

All figures are in US$ million. The above statistics are unofficial estimates.

5. Air Conditioning and Parts (ACR)

There is no local production of air conditioning (A/C) equipment in Hong Kong. The market is split between the household-type market, and the commercial and institutional markets. Japanese brands such as Hitachi, Toshiba, National, Daikin, Sanyo, as well as Mitsubishi and Fujitsu-General have captured the lion share of the household-type A/C market. U.S. brands such as Carrier, Trane, York and McQuay dominate the commercial, industrial and institutional market. Most of the major A/C equipment manufacturers also maintain factories in China. Except for main components, all of these A/C equipment manufacturers source components in China and throughout Asia. Hong Kong plays an important role as a re-exporting source.

There are fewer than 10 local manufacturers of A/C parts and components in Hong Kong. These manufacturers are medium-size companies with production facilities located in China. Products they produce include chillers, air handling units, fan coil units, cooling towers, heat exchangers, water pumps, VAV boxes, air louvers, air dampers, fire dampers, timers, evaporator coils and condenser coils. Their products are used mainly locally, and for export to China and Macau.

The majority of the A/C parts used in Hong Kong are imported. U.S. and European products dominate the market for chillers, air filters, ventilation fans, and blowers. The market for control products is also dominated by U.S. brands. Other A/C parts such as boilers, gaskets, bearings, and valves are imported from South East Asian countries, as well as from Europe and the United States.

Hong Kong re-exports over 70 percent of its imports of A/C parts, of which, over 50 percent go to China. These parts and components are used by OEM air conditioner manufacturers as well as by engineering companies that provide maintenance services in China. With the continuing modernization in China, demand for A/C equipment and parts should increase, as should Hong Kong's re-exports to China.

At present, except for approximately 100 "once-through" seawater cooled systems, Hong Kong predominately uses air-cooled air-conditioning systems. Fresh water has been restricted for use as a cooling media since the 1960's as a consequence of the limited availability of water resources within Hong Kong, and prior to the implementation of a reliable and continuous piped supply system of water from Guangdong Province, China.

Today, due to an oversupply of water and energy efficiency concerns, the government made a decision in March 2000 to relax the rules regarding the use of water-cooled systems. Therefore, it is expected that there will be an increase in demand for A/C parts used in water-cooled systems, such as pumps, motors, capacitors, controls, and thermostats.

Price and quality are two main purchasing factors. It is expected that the demand for expendable items such as air filters, carbon filters and refrigerants will continue to grow, as will the need for control devices and cooling towers. Due to growing environmental concerns in Hong Kong, best prospects in the coming years will also include all IAQ products, energy saving devices (air filters, vacancy sensors, heat recovery system), frequency inverters, and sensors for CO and CO2 and soft starters.

Year	2000	2001	2002
Total Market Size	514	399	419
Total Local Production	10	11	12
Total Exports	1,231	1,279	1,343
Total Imports	1,735	1,667	1,750
Total Imports from the U.S.	179	152	160

All figures are in US$ million. The above statistics are unofficial estimates.

6. Laboratory and Scientific Instruments (LAB)

The Hong Kong Government has implemented various initiatives to diversify the economy by creating more favorable conditions for growth in the hi-tech, biotech and Chinese medicine sectors. Responding to Hong Kong's growing R&D activities, which form an integral part of hi-tech and biotech industries, the market for imported laboratory and scientific instruments should continue to prosper. The United States is the leading supplier of these instruments in Hong Kong, with a market share almost double that of the second largest supplying country - Japan.

The Government supports construction and operation of three massive projects, Cyberport, Biotech Center and Science Park. While Cyberport focuses on the information technology industry and Biotech Center on biotech research, Science Park opens its doors to applied research and development in precision engineering, electronics, textiles and clothing.

Through its Innovation and Technology Commission, the Hong Kong Government operates various funding schemes to assist local companies in developing technology-based businesses: the Innovation and Technology Fund, the Applied Research Fund and the New Technology Training Scheme. Initial injection to the Innovation and Technology Fund totaled US$650 million. These funding schemes largely support local R&D activities and technological infrastructures, and will generate an increasing demand for laboratory and scientific instruments.

With these initiatives in place, Hong Kong will need sophisticated laboratory and scientific instruments for various research and development projects.

Year	2000	2001	2002
Total Market Size	352	350	360
Total Local Production	250	280	280
Total Exports	1,417	1,484	1,520
Total Imports	1,519	1,554	1,600
Total Imports from the U.S.	405	428	450

All figures are in US$ million. The above statistics are unofficial estimates.

7. Plastic Materials and Resins (PMR)

The plastics industry is Hong Kong's eighth largest manufacturing employer and the ninth largest in gross output and export earnings. Hong Kong is a trading economy and is a major world exporter of a variety of plastic products. It has long been a major world supplier of toys, shoes, packaging, housewares and casings of electrical and electronic consumer goods. Hong Kong has a small plastic resins and compounding sector. Most of the plastic resins are imported. Hong Kong's plastic raw material production is limited to polystyrene (PS), and only provides 20 percent of local demand. The rest is imported, mainly from Korea, Taiwan, Japan and the United States. American plastics are more expensive but of better quality. The United States is strong in engineering plastics for higher value-added products. Local end-users are willing to pay more for better quality.

Hong Kong has been a major world supplier of consumer products. In the last two decades, however, to reduce land and labor costs, Hong Kong manufacturers have shifted production to China. As such, much of the imported resins and plastic materials are re-exported for production in China. Demand for engineering plastics and specialized plastics should increase substantially due to the rapid development of China's automotive sector, for both parts and after-market parts, computers, fiber optic cables and many other high-tech products. Most plastic users in China rely on imports, since the domestic chemical industry does not have sufficient capability to meet the increasing demand. Consequently, China imports a large volume of plastic materials through Hong Kong. The most effective approach for selling plastic resins to Hong Kong and China is to appoint an agent/distributor to perform marketing and distribution functions.

Year	2000	2001	2002 (est)
Total Market Size	1,279	1,134	1,207
Total Local Production	594	483	507
Total Exports	4,891	4,961	5,754
Total Imports	5,576	5,612	6,454
Total Imports from the U.S.	614	633	664

All figures are in US$ million. The above statistics are unofficial estimates.

8. Building Products (BLD)

Construction standards in Hong Kong are changing towards the enhancement of a better quality of life, maintenance of sustainable development and the natural environment. To help meet these standards, business opportunities exist for U.S. companies that can provide cutting-edge design and engineering expertise; supply building materials and/or construction equipment that are innovative and reduce the use of labor and construction time.

Since 2000, energy efficient and environmentally friendly building materials, building automation and construction technology is strongly recommended by the government through various guidelines and incentives schemes. Private developers, consultants and end-users are interested in "intelligent buildings" systems with "green" building initiatives, thus creating a growing demand for these facilities in buildings. Design, products and technologies that provide new approaches for energy and water usage, waste reduction, air quality and noise management within the context of Hong Kong's high rise, high-density and high-humidity environment are very receptive in the market.

There are a few major projects in Hong Kong that are either planned or underway, that offer opportunities for design expertise and supply of building products:

the US$4 billion "City within a City" Kai Tak redevelopment· project that will largely adopt an environmentally friendly concept and include a 50,000-seats sports stadium;
a Disney theme park at Penny's Bay· (completion by 2005);
the 40 hectares waterfront project at West Kowloon· Reclamation area for development into an arts, cultural and entertainment district;
the 57 hectare Airport City that includes a 50,000 square meter· convention/exhibition center together with passenger terminals, hotels, retail, leisure and entertainment areas.

It is expected that the demand for building products in satisfying the needs for these projects alone will be substantial in the coming years. Further, Hong Kong continues to be a major re-exporter to the Chinese mainland.

Hong Kong relies heavily on imports of building products because local production is too small to meet demand. In the import market, competition is keen with major players from China, Japan, Italy, Germany, Spain and the United Kingdom competing against U.S. companies. However, the strength of American products lies in their quality and advanced technology. U.S. companies should target the high-tech niche, building automation systems, as well as environmentally friendly building materials. Hong Kong is characterized by high-rise construction and its humid subtropical climate. U.S. companies should promote materials that suit this environment and are appropriate for the Hong Kong market. U.S. companies should also develop more competitive pricing strategies for penetrating the market during the present economic situation.

Year	2000	2001	2002
Total Market Size	4,972	4,892	5,137
Total Local Production	2,896	3,040	3,192
Total Exports	7,555	6,520	6,846
Total Imports	9,631	8,372	8,791
Total Imports from the U.S.	585	572	600

All figures are in US$ million. The above statistics are unofficial estimates and include building hardware.

9. Electronic Parts/Components (ELC)

The electronics industry continues to play a key role in Hong Kong's economy. In 2001 electronic product exports accounted for 36 percent of Hong Kong's total exports, making the electronic industry Hong Kong's largest export-earner.

Hong Kong is an important trading center for electronic parts and components in Asia-Pacific. Hong Kong imports a wide range of electronic parts and components particularly for computers, telecommunications equipment, telephone apparatus, and audio/visual recording apparatus. Many of these parts and components are re-exported to Mainland China for further production. Today, many Hong Kong manufacturers have re-oriented production towards high-end electronic parts and components for use in commercial and industrial equipment.

The growing popularity of the Internet, mobile-commerce as well as new developments and applications in the areas of multimedia will sustain near-term demand for parts and accessories for computers and telecommunications. U.S. companies should be aware of the latest developments in Hong Kong's technology and focus on Hong Kong's growing demand for high-technology electronics parts and components, e.g., wireless devices.

China's impending accession to WTO should accelerate further Hong Kong's imports of electronic parts and components as Hong Kong is the entrepot for much of China's imports. In the meantime, the liberalization of telecommunications services will spur the demand for IT and telecommunications products, while the agreements on automobiles will stimulate demand for cars and automobile electronics.

Year	2000	2001	2002
Total Market Size	8,175	5,648	5,818
Total Local Production	3,276	3,300	3,399
Total Exports	41,106	40,487	41,701
Total Imports	46,005	42,835	44,120
Total Imports from the U.S.	4,446	4,283	4,411

All figures are in US$ million. The above statistics are unofficial estimates.

10. Franchising (FRA)

The number of franchise operations in Hong Kong increased from 52 in 1992 to 128 in June 2002, the majority of which are U.S. franchises. The 128 franchise operations in Hong Kong (70 percent foreign) operate more than 2000 outlets. Master franchisees operate about half of the foreign franchises and do not have sub-franchising activities. Food-related franchisees comprise 35 percent of all franchises while retailing and other services account for 25 percent and 40 percent respectively.

Hong Kong's high per capita income and affluent lifestyle offer tremendous opportunities to interested U.S. franchise firms. Many multinational companies reduced their work force in Hong Kong following the recent economic slowdown. Laid-off executives with retrenchment benefit packages are keen to start their own businesses and operating a franchised business presents an attractive option for them.

Most franchise growth has been in such areas as coffee shops, fashion wear, gifts and snack/sandwich shops and cleaning services. Nearly all of these franchises are from overseas. U.S. brands such as McDonald's, KFC, Starbucks, Gymboree, Circle K, 7-eleven and Pizza Hut are popular in Hong Kong. Other foreign brands such as Mango (apparel) and Pret-A-Manger (sandwich) are expanding locally.

A growing number of "frothy "tea shops, cake shops and apparel retailers have adopted franchising as a preferred method of market expansion, especially to China and SE Asia.

Year	2000	2001	2002
Total sales by franchises	1,091	1,145	1,208
Sales by local franchises	218	229	247
Sales by foreign franchises	873	916	961
Sales by U.S. franchises	847	888	912

All figures are in US$ million. The above statistics are unofficial estimates.

11. Pollution Control Equipment (POL)

In the next few years, U.S. firms will see ample opportunities to export pollution control equipment and technologies, as planned infrastructure projects come on line and industry works to comply with tightening environmental regulations. The key prospects for U.S. firms are solid waste reduction & management technologies, wastewater treatment and air pollution control equipment.

To cope with Hong Kong's environmental infrastructure requirements, the government spent a total of US$460 million in environmental protection related projects in 2001, which included primarily waste and sewage handling facilities, air pollution improvement works, waste water collection, treatment and disposal plants. For 2002, the government's budgeted expenditure for environmental projects increased by 10%, which will offer additional sales opportunities to U.S. environmental technology suppliers.

To reduce emissions, the government has been actively promoting the replacement of diesel taxis to LPG taxis and the installation of catalytic converters and particulate traps on the existing fleet of diesel vehicles. Currently, more than 80% of all taxis now use LPG. While alternative fuel light buses are in its introductory stage, the government has firmed up its plans to replace the whole fleet of 6,300 diesel light buses with LPG light buses by 2007.

In May 1998, the government put forward a waste reduction framework plan that includes a policy of waste avoidance, minimization and material recycling. The goals are to reduce the amount of waste requiring disposal, to prolong the service life of landfills, and to reduce the costs involved in transporting, disposing and treating the waste. The total waste reduction cost, including waste minimization technologies and management services, will be more than US$200 million from 2002-2007. This should provide excellent opportunities for U.S. firms. Hong Kong has been reusing and recycling waste paper, aluminum and plastics, and is actively seeking technologies to recycle glass, electronic goods, computer, tires and batteries.

Since 1994, the government has been investing up to US$2.1 billion in its wastewater and sewage treatment infrastructure with an aim to improve the water quality of its harbor. In the next decade, US$2 billion more will be invested in a territory-wide wastewater rehabilitation and improvement program. The work of which encompasses an extension of the existing wastewater collection network, and an upgrade of the wastewater treatment facilities.

Year	2000	2001	2002
Total Market Size	258	253	260
Total Local Production	28	30	30
Total Exports	65	75	80
Total Imports	295	298	310
Total Imports from the U.S.	126	112	115

All figures are in US$ million. The above statistics are unofficial estimates.

12. Computer Software (CSF)

Spending on packaged software and related services in Hong Kong totaled US$310 million in 2001. To help Hong Kong retain its competitive edge and drive its overall economic expansion, the Hong Kong Government's 2001 Digital 21 Strategy sets out the vision to make Hong Kong a leading e-business community and a leading digital city in the globally-connected world.

One of the Digital 21's goals is to leverage Hong Kong's strengths in the exploitation of enabling technologies. The Government is encouraging local businesses to make use of the developed information infrastructure in Hong Kong to adopt mobile-commerce (m-commerce) to seize its huge business potential. With the increased usage of the Internet for e-commerce and m-commerce, there will be a big demand for Internet-security software (anti-virus, firewalls, encryption software, and authentication), streaming media, wireless enabling middle-ware and applications. On the enterprise side, disaster recovery solution and data storage solutions are also in growing demand.

Upon China's WTO accession, China eliminated all tariffs on all imported software. The free market access will benefit foreign technology companies, especially U.S. technology firm whose products received high market recognition in China.

Business opportunities for U.S. companies:
Wireless device applications
Security solutions for both wire and wireless
Network and applications management solutions
Data storage solutions
Disaster recovery solutions

Year (Packaged Software only)	2000	2001	2002
Total Market Size	339	310	310
Total Local Production	476	438	438
Total Exports	375	345	345
Total Imports	238	219	219
Total Imports from the U.S.	59	54	54

All figures are in US$ million. The above statistics are unofficial estimates.

13. Telecommunications Equipment and Services (TEL, TES)

The HKG has continued its liberalization of the telecommunications market as outlined in its 1998 Review of Fixed Telecommunications and Television Policy report. This ongoing process to open the market will continue to create significant opportunities for U.S. companies to provide telecommunications services in Hong Kong.

One area of significant change in the past year has been the external facilities market. In 2000 the Office of the Telecommunications Authority (OFTA) awarded 12 licenses for satellite-based external fixed telecommunications network service (EFTNS) licenses. In addition, they have issued eight cable-based EFTNS licenses, five for submarine cables and three for land cables to Shenzhen, China. OFTA has also issued additional "letters of intent" to applicants who qualify for the license but have not completed all of the necessary business arrangements for the installation of their network. As evidenced by the landing of two new international submarine fiber optic cables in Hong Kong in 2001, these new licenses will bring a dramatic increase of international telecommunications capacity to Hong Kong, which was estimated to be about 44Gbps (only 7.1Gbps activated) at the end of 2000. This development will provide a solid infrastructure to support the rapid development of new and innovative information technology and telecommunication products and services. OFTA has invited additional applications for these licenses and will evaluate the applications on an ongoing basis. They expect to award new licenses to all qualified applicants, which will provide U.S. companies an open opportunity to enter the international telecommunications services market in Hong Kong.

There are currently five wireline Fixed Telecommunications Network Services (FTNS) licenses (PCCW-HKTC, Hutchison Communications Limited, New World Telephone Limited, New T&T Hong Kong Limited, and Hong Kong Broadband Network), including one for the provision of telecommunications services over the local hybrid fiber-coax cable television network. In 2000, OFTA issued five new licenses for the provision of wireless local loop (WLL) services. These wireless FTNS licenses allow operators to provide local telecommunications services, including data, using wireless technologies such as Local Multipoint Distribution System (LMDS). There remains limited opportunity to directly participate in the facilities-based local service market, either wireline or wireless, by partnering with one of these ten FTNS licensees. OFTA has also reaffirmed its commitment to the full liberalization of the local fixed telecommunications market after the current moratorium expires on January 1, 2003. OFTA is also evaluating plans to "front-load" the licensing process by awarding licenses prior to 2003. This could allow new licensees to proceed with their business plans and possibly limited construction of their networks in order to be prepared to offer new services when their licenses become effective in 2003.

On the mobile telecommunications front, OFTA granted four licenses for third generation (3G) mobile services in the last half of 2001 (Hong Kong CSL, Hutchison, SmartTone, Sunday). OFTA awarded the new licenses based on a pre-licensing screening followed by a royalty-based spectrum auction. This will also create additional demand for network hardware and software, support services and consulting, and content services for U.S. companies.

In 2001 the market penetration of mobile phones in Hong Kong was estimated to be over 60 percent, one of the highest in the world. Currently there are six companies operating 11 networks. Many companies have already introduced data services such as Wireless Application Protocol (WAP) and many have plans to introduce more advanced data services, such as GPRS, to their networks by the end of this year.

Both fixed and mobile telecommunications operators have made significant commitments to build out their network and provide new services, such as value-added and data services to attract and retain customers. This presents opportunities for U.S. companies that have experience with deploying new technologies and innovative services, such as electronic commerce, interactive broadcasting services, telemedicine, broadband data delivery, and long distance education, that can help the carriers differentiate themselves in this intensely competitive market. With increasingly complex and diversified networks, there will also be a constant demand for telecommunications integration, network management, and consulting services. In addition, there are significant opportunities to partner with the operators to provide telecommunications services in Hong Kong and the region. These developments in the market and technology provide significant opportunities for U.S. companies to bring their telecommunications services to Hong Kong.

On the broadcasting front, the HKG lifted the restrictions on foreign ownership in the satellite television broadcast industry in 1998, and it has also introduced liberalization measures to further open the pay TV and satellite TV service markets. As a result five new pay television licenses were awarded in July 2000 (Galaxy Satellite Broadcasting, Hong Kong DTV Company, Elmsdsale, Hong Kong Network TV, and Pacific Digital Media HK). The expanding pay and satellite television markets will open up new business opportunities to U.S. hardware vendors, content providers, and companies providing direct-to-home broadcasting services.

An evaluation committee completed technical trials of U.S., European, and Japanese standards for digital terrestrial television (DTT) in late 1999. Based on the trials, the government preliminarily selected the European DVBT as the DTT standard in Hong Kong. Regarding implementation, the HKG plans to commence DTT broadcasting in late-2002 or early-2003. The deployment of DTT will provide a tremendous opportunity for suppliers of hardware and software for broadcasting production and transmission facilities as well as the production of compatible receivers for the consumer market. In addition, with the increase in the number of broadcasters in the market, there will also be an increased demand for postproduction services, content and programming.

Hong Kong's telecommunications and broadcasting industries are facing one of their biggest transformations in history. The government is determined to make Hong Kong a regional leader in the information technology field. The evolving liberalization of the market will continue to provide vast opportunities for U.S. high technology firms.

Year	2000	2001	2002
Telephone Lines	3,945,574	4,000,000	3,926,000
Fax Lines	404,037	406,000	522,281
External Traffic Volume Total Outgoing	3.07 B min.	3.21 B min.	3.14 B min.
External Traffic Volume Total Incoming	1.86 B min.	1.90 B min.	1.88 B min.
Cellular Mobile Subscribers	5,234,376	5,502,260	5,447,000

14. Railroad Network (RRE)

At present, Hong Kong has a 143-kilometer railway network and three rail harbor crossings. To enhance further rail development in Hong Kong, the Hong Kong Government has committed US$13 billion to new projects for completion between 2002 and 2005. Another US$13 billion will be spent on six additional rails targeted for completion between 2008 and 2016, according to the Rail Development Strategy 2000. The Mass Transit Railway Corporation (MTRC) will operate two of the railway projects, while the Kowloon and Canton Railway Corporation (KCRC) will operate the remainder.

The Tseung Kwan O Extension

The construction of the MTRC's US$3.1 billion Tseung Kwan O Extension commenced in November 1998. The estimated completion date in December 2002. At present, all civil work, rolling stock and system-wide contracts have been awarded. MTRC welcomes developers to take part in the residential, retail and commercial property developments at proposed sites along the rail extension, with total site areas of approximately 45.32 hectares. The expected total investment cost is approximately US$10 billion.

Penny's Bay Disneyland Rail Link

This new 3.5 km railway will cost US$0.3 billion and will run between Yam O on the Tung Chung line and the Disneyland site at Penny's Bay. Work is expected to commence early in 2003.

The West Rail

The largest of the five railway projects is the KCRC's US$6.6 billion West Rail project. Construction of Phase I started in October 1998 and the whole project is due for completion in 2003. Since the KCRC is a wholly government-owned corporation, and Hong Kong is a WTO member, it must select contractors through open and competitive tenders. The KCRC has, however, completed and selection process for the majority of the West Rail construction and system-wide packages. Opportunities exist primarily in property development. The KCRC will establish subsidiary joint ventures with developers who are interested in the land adjacent to West Rail. To date, at least 10 sites for both residential and commercial developments, with a total floor space of 3.5 million square meters have been identified.

Sheung Shui to Lok Ma Chau Spur Line

Upon completion in mid-2004, the Sheung Shui to Lok Ma Chau Spur Line will provide a second rail passenger border crossing to China, and link up with their mass transit railway system. As planned, the Spur Line would ease border congestion at Lo Wu by linking Sheung Shui station with a new border crossing point at Lok Ma Chau. It would have two stations and a total length of 7.4 km.

Construction was scheduled to begin in early 2001 and an estimated cost of US$1.1 billion. However, this link as originally planned would have cut through a wetland habitat for rare birds. Due to opposition from the Environment Protection Department, it is possible that the Spur Line will be delayed or even scrapped. KCRC has lodged an appeal against the finding and is awaiting a final decision.

The Ma On Shan Rail and Tsimshatsui Extension

The Ma On Shan Rail calls for the construction on nine stations and a depot with a total length of 11.4 km. The other one kilometer underground extension will connect TST to Hung Hom. The Ma On Shan Rail (MOS Rail) and the Tsimshatsui Extension (TST Extension) have a combined capital cost of US$2.1 billion.

Having gained the Government's authorization to proceed, the KCRC can now award construction contracts for these two projects. Both projects are scheduled for completion in 2004. Opportunities for U.S. companies include consultancy services on the implementation of railway projects and environmental risk management.

Year	2000	2001	2002
Total Market Size	450	586	645
Total Local Production	0	0	0
Total Exports	0	0	0
Total Imports	450	586	645
Total Imports from the U.S.	22	43	37

All figures are in US$ million. The above statistics are unofficial estimates.

B. Best Prospects for Agricultural Products

Sector Description

Poultry
Oranges
Cotton
Hardwood Lumber
Grapes
Beef
Ginseng
Hide & Skins
Almonds
Apples

Of all U.S. agricultural exports to Hong Kong; poultry meat, red meats, fresh fruit, processed fruit & vegetables, hardwood lumber and hides & skins are the leading items. Poultry meat once again topped the list of U.S. food exports to Hong Kong in 2001, reaching a value of US$222 million. Chicken meat was the star performer as Hong Kong consumers continue to enjoy U.S. chicken wings, feet, franks and leg quarters. Hong Kong was the fourth largest market for U.S. fruit exports. U.S. fresh fruit exports to Hong Kong amounted to US$170 million in 2001. Popular items include oranges, apples and grapes.

Hong Kong's agricultural import market continues to command the attention of producers, manufacturers, processors and exporters of U.S. agricultural products, due to several factors, including:

1. the absence of trade barriers on agricultural products other than alcoholic beverages and processed tobacco products,

2. a strategic location next to the potentially enormous mainland China market, frequently resulting in "unofficial" re-exports subject to low or no duties, and

3. a highly-developed marketing system and affluent consumers who demand high value imports. Per capita income (US$24,070 in 2001) in Hong Kong is among the highest in Asia, with a significant portion of income spent on food.

Hong Kong is currently experiencing relatively high unemployment of 7.4 percent. This high unemployment has affected consumers' eating and shopping habits. Whereas most people used to eat out frequently, more are now shopping for groceries and preparing more meals at home, or eating meals at low-end or fast food restaurants. Hong Kong's relatively sophisticated shoppers are buying an increasing percentage of their groceries in supermarkets, as opposed to traditional wet markets. Demand for grocery store products, meats, poultry, eggs and fresh fruit continues to be very strong.

CHAPTER 6 TRADE REGULATIONS, CUSTOMS AND STANDARDS

A. Trade Barriers, Including Tariffs, Non-Tariff Barriers and Import Taxes

The Hong Kong Government levies no import tariffs. However, domestic consumption taxes (referred to as duties in Hong Kong) are imposed on certain goods, such as tobacco (including cigarettes), alcoholic beverages, methyl alcohol and some fuels. These taxes are levied equally on local manufactures and imports. In addition, a steep tax, called a "First Registration Tax," which ranges from 40-60 percent of the price, is levied on new car purchases.

Useful contact for inquiring about specific products:

Customs and Excise Department
8/F, Harbour Building, 38 Pier Road
Central, Hong Kong
Tel: (852) 2852-3324
Fax: (852) 2542-3334 (Dutiable Commodities Division)

B. Customs Valuation

Customs valuation is only an issue for the taxable items listed above. The tax on tobacco is by volume. The tax on distilled spirits is 100 percent, on wine is 80 percent and on beer is 30 percent. The tax on petroleum products is by both volume and value. The value is based on the bill of lading as long as it represents a reasonable market value. The tax on automobiles is based on both retail price and engine size.

For more information about Hong Kong customs regulations, please check the Hong Kong Customs Department's web site at http://www.info.gov.hk/customs.

Hong Kong Customs:
Customs and Excise Department
8/F, Harbour Building
38 Pier Road
Central, Hong Kong
Tel: (852) 2852-3185
Fax: (852) 2542-3334

U.S. Customs maintains an office in Hong Kong. They can be contacted at:

U.S. Customs Service
American Consulate General
26 Garden Road
Central, Hong Kong
Tel: (852) 2524-1136
Fax: (852) 2810-6550

C. Import Licenses

Textiles are subject to import and export licensing because of Hong Kong's obligations under agreements with the United States and other countries. Importers of rice and frozen meat must obtain an importer's license before they can import these commodities. Frozen/chilled meat imports must be accompanied by appropriate health certificates issued by a recognized authority of the country of origin. Plant and animal imports must be accompanied by appropriate health certificates. Hong Kong imposes quarantine requirements for certain pets and breeding swine depending on country of origin. The Agriculture Fisheries and Conservation Department's Livestock Division contact is Tel: (852) 2150-7070 and Fax: (852) 2375-3563.

D. Export Controls

The Hong Kong Government imposes restrictions on the import and export of high-technology products, mirroring the control lists of the multilateral export control regimes (Wassenaar, MTCR, Australia Group). This includes restrictions on unlicensed re-exports to the People's Republic of China. Textiles are subject to import and export licensing because of Hong Kong's obligations under agreements with the United States and other countries.

Hong Kong's export control system has not changed as a result of Hong Kong's July 1, 1997 reversion to Chinese sovereignty. Additionally, Hong Kong's status with regard to access to controlled U.S. technologies has not been altered as a result of reversion.

E. Import/Export Documentation

U.S. standard trade documentation is acceptable.

F. Temporary Entry

There are no problems for most products which are not subject to any Hong Kong duties or taxes. For alcohol, cigarettes and fuel, companies must fill out a duty waiver form which can be obtained from Hong Kong Customs at the address above.

G. Labeling, Marking Requirements

Non-tariff barriers such as labeling requirements, standards, etc. are minimal.

H. Prohibited Imports

The import of munitions, firearms and fireworks is strictly forbidden.

I. Standards

Few product safety standards are required for the domestic Hong Kong market. What few there are relate to fire control (gas and electricity) in the city's high rise buildings. Other standards of quality and safety control imposed on domestic manufacturers are for goods made for export or re-export outside Hong Kong. Currently, building materials and electrical/mechanical supplies have to meet British standards. However, Hong Kong is gradually recognizing other standards so U.S. companies seeking to export to Hong Kong check with potential agents and customers to determine exact standards required.

Another guideline to use regarding quality control is the "ISO 9000" series, published by the International Organization for Standardization (ISO). These standards, now in the process of being adopted in Hong Kong via the Hong Kong Quality Assurance Agency, provide a framework for all types of manufacturing industries. The Hong Kong Housing Authority has also adopted ISO 9000 for all of its consultants/contractors, and the Works Branch has extended ISO 9000 to engineering and architectural consultants as of April 1, 1996. The Airport Authority also requires suppliers and contractors to conform to ISO 9000.

J. Free Trade Zones/Warehouses

There are no special zones since the whole territory is basically a free trade zone.

K. Special Import Provisions

None

L. Membership in Free Trade Arrangements

Hong Kong is a founding member of the WTO as well as a member of APEC.

CHAPTER 7 INVESTMENT CLIMATE STATEMENT

A. Openness to Foreign Investment

The Hong Kong Special Administrative Region, China, hereafter referred to as Hong Kong, pursues a free market philosophy, and there is minimum Government interference in the economy. The government maintains that its August, 1998 US$15 billion intervention in the stock, futures, and currency markets was a one-off event designed to thwart "market manipulators." It welcomes foreign investment. It offers no special incentives nor does it impose disincentives for foreign investors. Hong Kong's well-established rule of law is applied consistently and without discrimination. There is no distinction in law or practice between investments by foreign-controlled companies and those controlled by local interests. Hong Kong remains a member of the World Trade Organization in its own right and a separate customs territory.

Hong Kong is a virtually duty free port. There are a small number of tariffs on products such as cigarettes and alcohol. There are no direct subsidies to domestic industries. In recent years, the government has become more proactive in support of high technology development. This included efforts to encourage applied research and development in the industrial park-like "Cyberport" and "Science Park" projects. With government support, these two projects, which were open to foreign and domestic companies on an equal basis, were intended to offer lower than market prices for office rental space. There is no discrimination against foreign investors either at the time of initial investment or afterwards. There is no capital gains tax nor are there withholding taxes on dividends and royalties. Profits can be freely converted and remitted. Foreign-owned and domestically owned firms are taxed at the same rate, 16% of profits. There are no preferential or discriminatory export and import policies that affect foreign investors.

There are no disincentives to foreign investment such as limitations on the use or transfer of foreign currency, or any system of quotas, performance requirements, bonds, deposits, or other similar regulations. There is no anti-trust law. Certain sectors of the economy are dominated by monopolies or cartels, not all of which are regulated by the Hong Kong Government. These entities do not necessarily discriminate against U.S. goods or services, but they can use their market position to block effective competition. The Hong Kong Code on Takeovers and Mergers (1981) sets out general principles for acceptable standards of commercial behavior.

With few exceptions, the Hong Kong Government does not attempt to limit the activities of foreign investors either in specified projects or sectors. Foreign investment in Hong Kong flows freely into the industrial sector as well as into services, franchises, restaurants, the entertainment industry, and the ownership of property, both residential and commercial. There are certain exceptions:

i) Telecommunications - The Hong Kong government introduced liberalization of the telecommunications services market on June 30, 1995 following the expiry of Hong Kong Telephone Company Limited's (HKTC) franchise for the local telephone service. Five companies, namely PCCW-HKTC, Hutchison Communications Limited, New World Telephone Limited, New T&T Hong Kong Limited, and Hong Kong Broadband Network, have been licensed to provide Fixed Telecommunication Network Services (FTNS) on a competitive basis. The government opened the previously monopolized international telecommunications services market to full competition on January 1, 1999. International simple resale (ISR) and Internet telephony are also allowed. In January 2002, the government announced its decision to proceed with the full liberalization of the FTNS market from January 2003. In September 2001, the government issued 4 third generation (3G) mobile licenses. In order to enhance competition safeguards, improve interconnection for telecommunications services, streamline licensing procedures and provide the Office of Telecommunications Authority (OFTA) with powers, the government enacted the Telecommunication (Amendment) Ordinance 2000 in June 7, 2000. In May 2002, the government introduced the Telecommunications (Amendment) Bill 2002 to the Legislative Council. The bill, with the aim to prevent the creation of monopolies, requires carrier licensees to seek the approval of OFTA for transactions resulting in acquisition of interest in the licensees exceeding certain thresholds (15 percent, 30 percent and 50 percent). As of June 2002, the government has awarded 8 licenses for operating satellite-based external facilities and 17 licenses for operating cable-based external facilities.

ii) Broadcasting - In January, 1998 the Hong Kong Government opened the broadcast uplink market to full competition. Several months later, after a policy review, it announced its intention to open the entire television sector to full competition. The only restrictions that will remain are those that limit foreign ownership to 49 percent. In July 2000, the government awarded five new licenses to operate pay-TV channels. Hong Kong's expanding pay-TV market presents some outstanding business opportunities for American companies specializing in the supply of TV broadcasting equipment and expertise, as well as those specializing in TV content production.

iii) Legal Services – Foreign lawyers are able to practice foreign and international law in Hong Kong. Foreign lawyers can apply to take the Hong Kong Bar Examination and, if successful, practice Hong Kong law. Foreign law firms may not hire local lawyers to advise on Hong Kong law, but may themselves become "local" firms (after satisfying certain residency and other requirements) and thereafter hire local attorneys. They also can form associations with local law firms.

iv) Financial Services – The Hong Kong Monetary Authority in November 2001 relaxed all remaining restrictions on the number of foreign bank branches. Moreover, foreign banks may acquire a controlling interest in a local bank that has unlimited branching rights. In December 2001, HKMA proposed the relaxation of market entry criteria for the banking sector, including replacing the US$16 billion asset size criterion for foreign banks to US$385 million in deposits and US$513 million in assets -- the criteria applied for locally incorporated banks. In addition, HKMA proposed allowing overseas incorporated banks to make subsidiaries of their Hong Kong operations provided that: the operations had been authorized to conduct banking business in Hong Kong for not less than three years; and the amounts of customer deposits and assets that will be transferred to the subsidiary seeking authorization are not less than US$385 million in deposits and US$513 million in assets. The proposals were gazetted in May 2002 and will be provided to the Legislative Council for review.

v) Medical services - Foreign medical practitioners are required to pass the Medical Council's licensing examination and complete a 12 months internship. Exemption from taking the examination is based on applicants' credentials and experiences. The basic requirement for the exemption is at least 10 years of experience in the practice of medicine and surgery. Applicants claiming exemption from part of the internship training must have satisfactorily completed their internship outside Hong Kong.

Foreign firms and individuals are allowed freely to incorporate their operations in Hong Kong, to register branches of foreign operations, and to set up representative offices without discrimination or undue regulation. There is no restriction on the ownership of such operations. Company directors are not required to be citizens of, or resident in Hong Kong. Reporting requirements are straightforward and not onerous.

Hong Kong's extensive body of commercial and company law generally follows that of the United Kingdom, including the common law and rules of equity. Most statutory law is made locally. The local court system provides for effective enforcement of contracts, dispute settlement and protection of rights. Formalities are minimal for company incorporation and business registration. Foreign and domestic companies register under the same rules and are subject to the same set of business regulations. The Hong Kong Government's Invest Hong Kong encourages inward investment as a means of introducing new or improved products, processes, designs and management techniques. U.S. and other foreign firms can participate in government financed and subsidized research and development programs on a national treatment basis.

According to Hong Kong government statistics, there were 3,237 regional operations of overseas companies in Hong Kong in 2001. The government defines regional operations as: regional headquarters which control the operation of other branches in the region without frequent referrals to the parent company outside Hong Kong; and regional offices which coordinate operations elsewhere in the region with frequent referrals to the parent company outside Hong Kong or a regional headquarters. Japan has the largest number of regional headquarters and offices in Hong Kong (693 companies), followed by the U.S. (641 companies) and the United Kingdom (253 companies). The major lines of business of the regional headquarters included wholesale/retail, import/export, finance and banking, manufacturing, and transport and related services.

B. Conversion and Transfer Policies

There are no restrictions on conversion and inward or outward transfer of funds for any purpose. The HK dollar is a freely convertible currency that, since late 1983, has been linked to the U.S. dollar at an exchange rate of HK$7.8 = US$1. Government authorities are committed to exchange rate stability through maintenance of the linked rate. There is no allocation of foreign exchange.

C. Expropriation and Compensation

The U.S. Consulate General is not aware of any expropriation actions in the recent past. However, expropriation of private property may occur if it is clearly in the public interest, but only for well-defined purposes such as implementation of public works projects. If this is the case, expropriations are conducted through negotiations, in a non-discriminatory manner in accordance with established principles of international law. Due process and transparency are observed. Investors in and lenders to expropriated entities receive prompt, adequate, and effective compensation. Property may be acquired under the State Land Resumption Ordinance, the Land Acquisition Ordinance, the Mass Transit Railway (Land Resumption and Related Provisions) Ordinance or the Roads Ordinance. These ordinances provide for payment of compensation. If agreement cannot be reached on the amount payable, either party can refer the claim to the Land Tribunal.

D. Dispute Settlement

The U.S. Consulate General is not aware of any investor-state disputes in recent years involving U.S. or other foreign investors or contractors and the Hong Kong Government. The Hong Kong Department of Justice is also not aware of any such disputes. Private investment disputes are normally handled in the courts or via private negotiation. Alternatively, disputes may be referred to the Hong Kong International Arbitration Center.

The Hong Kong Government accepts international arbitration of investment disputes between itself and investors. Following reversion to Chinese sovereignty on July 1, 1997, Hong Kong continued to apply provisions of the International Center for the Settlement of Investment Disputes (ICSID), known as the Washington Convention, and the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards. Hong Kong has also adopted the United Nations Commission on International Trade Law (UNCITRAL) model law for international commercial arbitration.

Hong Kong and China signed a Memorandum of Understanding (MoU) in June 1999 on an arrangement parallel to the New York Convention for the reciprocal enforcement of arbitral awards, since the New York Convention, being an international agreement, is no longer applicable to the enforcement of arbitral awards between Hong Kong and China. The Legislative Council enacted the Arbitration (Amendment) Ordinance in January 2000, which gave effect to the Hong Kong-China MoU. Arbitration awards made in China and Hong Kong became mutually binding effective from February 2000.

Hong Kong's legal system is firmly based on the rule of law and the independence of the judiciary. Courts of justice in Hong Kong include the Court of Final Appeal; the High Court (composed of the Court of Appeal and the Court of First Instance); the District Court; the Magistrate's Courts; the Coroner's Court; and the Juvenile Court. There are also a Lands Tribunal, Labor Tribunal, and other statutory tribunals. On July 1, 1997, the Court of Final Appeal replaced Britain's Privy Council as Hong Kong's highest court when Hong Kong reverted to Chinese sovereignty.

The Hong Kong Government owns all land, granting long-term leases without transferring title. Local and foreign leaseholders are given equal treatment.

E. Performance Requirements/Incentives

Consistent with its generally non-interventionist economic philosophy, Hong Kong imposes no export performance or local content requirements as a condition for establishing, maintaining or expanding a foreign investment. Hong Kong offers no special privileges to attract foreign investment. There are no requirements that Hong Kong residents own shares, that foreign equity be reduced over time, or that technology be transferred on certain terms.

All of Hong Kong is a duty-free zone, as it is a virtually free port. Subject to non-discriminatory application of excise taxes and restricted entry in some sectors, as noted above (e.g. broadcasting, electric power, etc.), local and foreign firms are free to take advantage of investment opportunities as they arise.

F. Right to Private Ownership and Establishment

Hong Kong law and regulations provide for the right of foreign and domestic private entities to establish, own and to dispose of interests of business enterprises. Foreign investors are generally allowed to engage in all lawful forms of remunerative activity except in a few fields. Restrictions involve regulated entry into the mass transit, electric power generation, medical services, legal, telecommunications and broadcasting sectors. The Hong Kong Government does not generally engage directly in business activity via public enterprises, preferring to leave this to the private sector. In general, business privileges, franchises and land development rights are granted on the basis of competitive equality.

G. Protection of Property Rights

Hong Kong's commercial and company laws provide for effective enforcement of contracts and protection of corporate rights. Hong Kong has filed its notice of compliance with the trade-related intellectual property requirements of the World Trade Organization. The Intellectual Property Department, which includes the Trademarks and Patents Registries, is the focal point for the development of Hong Kong's intellectual property regime. The Customs and Excise Department is the principal enforcement agency for intellectual property rights (IPR). The Hong Kong government has taken significant steps to improve its intellectual property rights regime and step up enforcement. As a result of these efforts and progress in controlling illicit production, the United States Trade Representative took Hong Kong off the Special 301 Watch List in 1999.

In mid-1998, Hong Kong adopted the "Prevention of Copyright Piracy Ordinance," which required compact disc producers to register with the government, and authorized Hong Kong Customs to inspect factories. Implementation of this and other laws appears to have significantly reduced illegal production and retail sales of copyrighted products. Piracy-related arrests in 2001 reached 1,677, down from 2,736 the year before. The Hong Kong courts have also begun imposing longer jail terms for violations of Hong Kong's copyright ordinance. A first-ever conviction for hard disk loading piracy has helped to discourage the previously widespread practice of retailers bundling unlicensed software with new computers. Nevertheless, considerable amounts of pirated product remain available at the retail level throughout Hong Kong.

The Legislative Council's January, 2000 reclassification of piracy under Hong Kong's organized and serious crimes ordinance provided additional tools for Customs' effort against pirate networks. The Council has also passed legislation to criminalize corporate end-user software license abuse. Hong Kong's recent efforts to increase liaison with mainland copyright licensing officials should help ensure that very large optical disc production capacity is used only for legitimate products.

Hong Kong has acceded to the Paris Convention for the Protection of Industrial Property, the Bern Convention for the Protection of Literary and Artistic Works, and the Geneva and Paris Universal Copyright Conventions. Hong Kong also continues to participate in the World Intellectual Property Organization, as part of China's delegation.

The Copyright Ordinance protects any original copyright work created or published by any person anywhere in the world. It provides for rental rights for sound recordings and computer programs but not films. It provides for enhanced penalty provisions against copyright piracy and additional legal tools to facilitate enforcement. It decriminalizes parallel imports of copyrighted products one year after their release anywhere in the world, but maintains civil penalties. Registration is voluntary.

The Patent Ordinance allows for granting of an independent patent in Hong Kong based on the patents granted by the UK and the Chinese Patent Offices. The patent granted in Hong Kong is independent and capable of being tested for validity, rectified, amended, revoked and enforced in the Hong Kong courts.

The Registered Design Ordinance is modeled on the EU design registration system, with certain modifications. To be registered, a design must be new. The system requires no substantive examination. Protection is for an initial period of five years, and may be extended for four periods of five years each, up to a maximum of 25 years.

Hong Kong's trademark law is TRIPS-compatible and allows for registration of trademarks relating to services. All trademark registrations originally filed in Hong Kong are valid for seven years and renewable for 14-year periods. Proprietors of trademarks registered elsewhere must apply anew and satisfy all requirements of Hong Kong law. When evidence of use is required, such use must have been in Hong Kong.

Hong Kong has no specific ordinance to cover trade secrets. Under the Trade Description Ordinance, however, the government has the duty to protect information being disclosed to other parties. The Trade Description Ordinance prohibits false trade descriptions, forged trademarks and misstatements in respect of goods supplied in the course of trade.

H. Transparency of the Regulatory System

Hong Kong's body of law and regulation recognizes the value of competition in all forms of economic endeavor. The only exceptions are those previously mentioned, where entry is restricted. Tax, labor, health and safety and other laws and policies avoid distortions or impediments to the efficient mobilization and allocation of investment. Bureaucratic procedures and "red tape" are held to the minimum and are equally transparent to local and foreign investors. Hong Kong does not have an anti-trust law. In November, 1996, the Consumer Council published a study report to recommend the setting up of a competition law and an independent Competition Authority to investigate any anti-competitive practices. After examining these recommendations, and despite calls from some quarters for a comprehensive competition law, the Hong Kong government concluded that it would not support competition legislation. It states that an all-embracing law would not be able to take into account the specific requirements of individual sectors. Instead of a Competition Authority, the government has established a Competition Policy Advisory Group (COMPAG), chaired by the Financial Secretary, to review competition issues that have substantial policy or systemic implications.

I. Efficient Capital Markets and Portfolio Investment

There are no impediments to the free flow of financial resources.

Non-interventionist economic policies, complete freedom of capital movement and a well-understood regulatory and legal environment have greatly facilitated Hong Kong's role as a regional and international financial center. As noted earlier, the government maintains its August, 1998, US$15 billion intervention in the stock, futures, and currency markets to thwart "manipulators" was a one-off event. Hong Kong has continued to enjoy economic autonomy following its reversion to Chinese sovereignty on July 1, 1997, which includes separate monetary systems, separate financial and regulatory systems, and separate budgetary regimes.

Hong Kong's foreign exchange markets handled an average daily turnover of US$66.8 billion in 2001, making it the seventh largest in the world and the third largest in Asia.

Hong Kong has a three-tier system of deposit-taking institutions: licensed banks, restricted license banks, and deposit-taking companies. Only licensed banks can offer current (checking) or savings accounts. By the end of 2001, Hong Kong had 147 licensed banks (118 were incorporated overseas), 49 restricted licensed banks (20 were incorporated overseas), 54 deposit-taking institutions (all incorporated in Hong Kong), and 111 representative offices (all were set up by foreign banks). The Hong Kong & Shanghai Banking Corporation (HSBC) is Hong Kong's largest banking group. With its majority-owned subsidiary Hang Seng Bank, and 319 branches, the group controls more than 50 percent of Hong Kong dollar deposits. The Bank of China (Hong Kong) is the second-largest banking group (354 branches), and controls 20 percent of Hong Kong dollar deposits. Twenty-nine American "authorized financial institutions" operate in Hong Kong. U.S. banks licensed in Hong Kong are listed in Chapter 11 Section F below. Most banks in Hong Kong maintain U.S. correspondent relationships.

Hong Kong's five largest banks, in terms of total assets (2001), are as follows:

Rank	Institution	Total Assets (US$ Billion)
1	Hong Kong & Shanghai Banking Corporation (HSBC)	223.4
2	Bank of China (Hong Kong)	105.1
3	Hang Seng Bank Ltd.	60.9
4	Standard Chartered Bank, Hong Kong Branch	35.4
5	Bank of East Asia, Ltd.	23.3

Sources: Companies' annual reports
Note: Pro forma result for Bank of China (Hong Kong) as of end-June 2001.

Credit is allocated strictly on market terms and is available to foreign investors on a non-discriminatory basis. The private sector has access to the full spectrum of credit instruments as provided by Hong Kong's banking and financial system. Legal, regulatory, and accounting systems are transparent and consistent with international norms. The Hong Kong Monetary Authority (HKMA) functions as a de facto central bank. The HKMA is responsible for maintaining the stability of the banking system and managing the Exchange Fund backing Hong Kong's currency -- linked to the U.S. dollar at HK$7.8 = US$1. HKMA, with the assistance of the banking sector, has upgraded Hong Kong's financial market infrastructure. Real Time Gross Settlement helps minimize risks in the payment system and brings Hong Kong in line with international standards. The Hong Kong Mortgage Corporation (HKMC) promotes the development of the secondary mortgage market in Hong Kong. The HKMC is 100 percent owned by the Government through the Exchange Fund. The HKMC purchases residential mortgage loans for its own retained portfolio, and then repackages mortgages into mortgage-backed securities for sale. In 2001, the HKMC issued US$2 billion worth of unsecured debt securities in the local debt market.

In order to promote market liberalization and enhance competition in the banking sector, HKMA proceeded with the last stage of deregulation of interest rate rules on July 3, 2001. The government is considering establishment of a Deposit Insurance Scheme (DIS). In March 2002, the HKMA undertook a second public consultation on how the DIS should be structured. Issues include a differential premium system based on the CAMEL ratings of banks and coverage limits. It is expected that introduction of a DIS in Hong Kong would occur in the latter part of 2002 at the earliest.

Insurance: Under the Insurance Companies Ordinance, insurance companies are authorized by the Insurance Authority to transact business in Hong Kong. Hong Kong has the highest number of authorized insurance companies in Asia. As of May 2002, there were 201 authorized companies. Of these, 103 were foreign companies from 24 countries. In terms of assets, a number of the world's top insurance companies, have branch offices or subsidiaries in Hong Kong.

Stock and Futures Markets: With a total market capitalization of US$498.1 billion and 756 listed firms at year-end 2001, the Stock Exchange of Hong Kong (SEHK) ranked second in Asia after Tokyo, and tenth in the world in terms of capitalization. The SEHK launched regional derivative warrants and convertible bonds in 1997. In August 1998, the government intervened in the stock and futures markets because it believed that actions by speculators were creating a systemic threat. The government spent US$15.3 billion to buy all 33 Hang Seng Index constituent stocks and futures. The intervention aroused controversy locally and overseas. An independent company, the Exchange Fund Investment Limited (EFIL), was later established by the government to dispose of its stock portfolio in the form of a mutual fund, the Tracker Fund of Hong Kong (TraHK). EFIL launched the initial issue size of TraHK in November 1999. By end-June 2002, EFIL's remaining stock was valued at about US$ 10 billion, of which about US$ 3.7 billion will be disposed of while the remaining US$ 6.3 billion shares will be kept as a long-term investment. TraHK is traded on the SEHK.

The stock and futures exchanges were merged into the Hong Kong Exchanges and Clearing Limited in March 2000, becoming the Hong Kong Exchanges and Clearing Limited (HKEx), which was listed on the SEHK in June 2000. In May 2000, SEHK launched a pilot program for trading 7 NASDAQ stocks. By end-May of 2002, the Hong Kong Futures Exchange Ltd. provided a market for 5 U.S. stock futures contracts: Cisco System, IBM, Intel, Microsoft and Oracle. The Securities and Futures Legislation (Provisions of False Information) Ordinance, which made false reporting to the Securities and Futures Commission and other regulators a criminal offence, was enacted in July 2000. In August 2000, the U.S. SEC recognized the Growth Enterprises Market (GEM), a high-tech market established in late 1999, as a designated offshore securities market and allowed GEM stocks to be sold in and outside the U.S. to U.S. and non-U.S. residents. In addition, SEHK launched the first phase of the Third Generation Automatic Order Matching and Execution System in August 2000.

There are no discriminatory legal constraints to foreign securities firms establishing in Hong Kong via branching, acquisition, or establishing subsidiaries. In practice, foreign firms typically establish in Hong Kong as subsidiaries. Rules governing operations are the same, irrespective of ownership. There are no restrictions on cross-border capital flows.

The SEHK plays a significant role in raising capital for Chinese state-owned enterprises. A memorandum of understanding on regulatory cooperation between Chinese and Hong Kong stock and regulatory authorities signed in June 1993 provides a framework for Chinese state enterprises to raise equity (through the issuance of so-called "H" shares) in Hong Kong provided they meet Hong Kong regulatory and accounting requirements. These "H" shares are denominated in Renminbi, but must be purchased in Hong Kong dollars. In 2001, a total of 50 Chinese enterprises had "H" share listings on the SEHK, with market capitalization of US$12.8 billion.

Since 1990, Hong Kong has made a concerted effort to develop a local debt market with the launching of the Exchange Fund bills and notes program. Maturities now extend to ten years. Hong Kong dollar debt (public and private) has increased gradually, from US$3.46 billion at the end of 1989 to US$63.3 billion by the end of 2001. Regional infrastructure financing requirements, and increasing investor demand are projected to stimulate further development of the local debt market. The Securities and Futures Commission, an independent statutory body outside the civil service, has licensing and supervisory powers to ensure the integrity of markets and to protect investors, while the exchanges' own Association serves as the first line of regulatory defense.

The Hong Kong Government began the operations of the Mandatory Provident Fund (MPF) in December 2000. The MPF scheme requires both workers and employers to contribute to retirement funds. Contributions are expected to channel US$3 to 4 billion per year into various investment vehicles.

Portfolio investment decisions are left to the private sector. There are no laws or regulations that specifically authorize private firms to adopt articles of incorporation/association which limit or prohibit foreign investment, participation or control.

J. Political Violence

Hong Kong is politically stable and secure. The U.S. Consulate General is not aware of any incidents over the past few years involving politically motivated damage to projects or installations. There has been no major unrest in Hong Kong since China's Cultural Revolution spilled across the border in 1967. The protests in Hong Kong related to the May, 1999 accidental bombing of China's embassy in Belgrade were peaceful and orderly.

K. Corruption

Hong Kong has a good track record in combating corruption. U.S. firms have not, for the past three decades, identified corruption as an obstacle to foreign direct investment. The well-known Independent Commission against Corruption (ICAC) is responsible for combating corruption. The ICAC was established in 1974, three years after enactment of the Prevention of Briberies Ordinance. The ICAC is independent of the public service and the ICAC Commissioner is responsible directly to the Chief Executive. A bribe to a foreign official is a criminal act, as is the giving or accepting of bribes, for both private individuals and government employees. Of the 4,721 corruption reports filed in 2001 (about one-third were ultimately investigated), 54 percent involved the private sector, 11 percent the police, 23 percent other government bodies, and 7 percent public bodies such as the Legislative Council, Urban Councils, and universities. Penalties are stiff. For example, a civil servant who solicits or accepts any advantage without special permission of the Government can receive one year's imprisonment and a HK$100,000 fine if convicted. Individuals in both the private and public sector can receive up to 7 years imprisonment and a HK$500,000 fine for offering, soliciting or accepting a benefit for performance or non-performance of an official duty.

L. Bilateral Investment Agreements

Hong Kong is negotiating a series of bilateral investment agreements -- the Hong Kong Government calls them "Investment Promotion and Protection Agreements" -- with major foreign investors. To date, Hong Kong has signed agreements with Australia, Austria, Belgo-Luxembourg Economic Union, Denmark, France, Germany, Italy, Japan, Korea, the Netherlands, New Zealand, Sweden, Switzerland and the United Kingdom. The Hong Kong Government has initialed agreements with Canada and Vietnam. It is negotiating agreements with Singapore and Thailand. All such agreements have been based on a model text approved by China through the Sino-British Joint Liaison Group. The United States and Hong Kong began discussing a bilateral investment agreement in 1996, but certain differences could not be resolved and negotiations were suspended.

M. OPIC and Other Investment Insurance Programs

Overseas Private Investment Corporation (OPIC) coverage is not available in Hong Kong. Hong Kong is a member of the World Bank Group's Multilateral Investment Guarantee Agency (MIGA).

N. Labor

For most of the decade prior to the Asian financial crisis, Hong Kong's unemployment rate hovered around two percent as the economy continued a rapid structural transformation from manufacturing to a financial and services center. The burgeoning services sector easily absorbed displaced manufacturing workers. During the Asian financial crisis, the unemployment rate rose to 6.3 percent, reflecting the impact of regional economic turmoil. After a brief recovery, it surged to 7.4 percent in March-May 2002 in response to a variety of factors including the U.S. slowdown.

At the same time that the overall rate of unemployment has risen, Hong Kong has experienced a mismatch between labor demand and supply in the form of a shortage of highly-skilled technical and financial professionals. To address this problem, the government implemented two schemes to attract experts from outside Hong Kong for employment. The Admission of Talents Scheme was launched in December 1999 to attract workers with advanced degrees, normally a doctoral degree, from reputable institutions. In June 2001, the government launched the Admission of Mainland Professionals Scheme to attract Mainland Chinese qualified professionals with skills or knowledge not readily available locally.

An employee retraining board, established in 1992, provides skills retraining for local employees to cope with ongoing structural change in the economy. Labor-management relations are generally smooth. The average number of days lost due to industrial conflicts is one of the lowest in the world (0.31 worker days lost per 1,000 workers in 2000). In early 1996 labor groups achieved their goals of scaling back labor importation and boosting severance pay. In 2000, membership in Hong Kong's 594 registered unions totaled 673,375, a participation rate of about 22.08 percent. Hong Kong has implemented 40 conventions of the International Labor Organization in full and 18 others with modifications. Hong Kong continued to adhere to these conventions after reversion to Chinese sovereignty on July 1, 1997.

O. Foreign Trade Zones/Free Ports

Hong Kong is a free port without foreign trade zones.

P. Foreign Direct Investment Statistics

Table 1: Position of Inward Foreign Direct Investment by Major Investor Country/Territory, as at end of 2000.

Country	U.S.$ Billion	% Share of Total
China	142.6	49.5
Netherlands	28.8	10.0
Bermuda	23.7	8.2
United States	20.7	7.2
Japan	14.5	5.0
Singapore	12.6	4.4
British Virgin Islands	10.3	3.6
United Kingdom	7.1	2.5
Taiwan	3.4	1.2
Switzerland	2.5	0.9
Others	21.9	7.6
TOTAL	288.1	100.0

Source: Hong Kong Census and Statistics Department
Note 1: Excluding inward direct investment from offshore financial centers, which were originally from Hong Kong.
Note 2: US$1 = HK$7.8

Table 2: Position of Inward Foreign Direct Investment by Major Economic Activity, as at end of 2000.

	U.S.$ Billion	% Share of Total
Investment holdings, real estate and various business services	146.7	50.9
Banks and deposit-taking companies	40.1	13.9
Wholesale, retail and import/export trades	39.0	13.5
Financial institutions other than banks and deposit-taking companies	13.6	4.7
Communications	7.5	2.6
Manufacturing	6.6	2.3
Transport and related services	5.6	1.9
Insurance	5.3	1.8
Construction	4.7	1.6
Restaurants and hotels	1.9	0.7
Other activities	17.2	6.0
TOTAL	288.1	100.0

Source: Hong Kong Census and Statistics Department
Note: Excluding inward direct investment from offshore financial centers, which were originally from Hong Kong.

Table 3: Position of Outward Foreign Direct Investment by Major Resident Country/Territory, as at end of 2000.

Country	U.S.$ Billion	% Share of Total
China	129.7	58.7
British Virgin Islands	56.4	25.5
New Zealand	3.5	1.6
Singapore	3.3	1.5
United States	3.1	1.4
United Kingdom	3.0	1.4
Japan	2.3	1.1
Thailand	2.0	0.9
South Korea	2.4	0.5
Netherlands	1.0	0.4
Taiwan	0.8	0.4
Others	14.7	6.7
TOTAL	221.0	100.0

Source: Hong Kong Census and Statistics Department
Note: Excluding outward direct investment of offshore financial centers which were channeled back to Hong Kong.

Table 4: Position of Outward Foreign Direct Investment by Major Economic Activity, as at end of 2000.

	U.S.$ Billion	% Share of Total
Investment holdings, real estate and various business services	133.5	60.4
Banks and deposit-taking companies	3.8	1.7
Wholesale, retail and import/export trades	24.3	11.0
Financial institutions other than banks and deposit-taking companies	9.2	4.1
Communications	3.8	1.7
Manufacturing	18.4	8.3
Transport and related services	5.0	2.3
Insurance	1.7	0.7
Construction	1.9	0.9
Restaurants and hotels	5.0	2.3
Other activities	14.4	6.5
TOTAL	221.0	100.0

Source: Hong Kong Census and Statistics Department
Note: Excluding outward direct investment of offshore financial centers that were channeled back to Hong Kong.

Table 5: Amount and Growth of U.S. Investment in Hong Kong for 1999/2000/2001 in US$ Millions.

CATEGORY	1999	2000	2001	% change 2000/2001
Petroleum	160	217	177	-18.4
Manufacturing	2,876	3,110	2,650	-14.8
Wholesale	4,870	5,766	7,402	28.4
Depository Institutions	1,971	2,436	2,016	-17.2
Financial/Insurance/Real Estate	6,234	10,776	12,458	15.6
Services	636	513	660	28.7
Others	3,344	3,803	4,026	5.9
TOTAL	20,092	26,621	29,389	10.4

Note 1: The U.S. Department of Commerce estimates the total U.S. direct investment position in Hong Kong at historical cost (the book value of U.S. direct investors' equity in, and net outstanding loans to, their foreign affiliates).

Note 2: U.S. Department of Commerce statistics differ from HKG statistics. Per Table 1 above, the latter indicates total U.S. investments of US$20.7 billion at year-end 2000.

Note 3: Preliminary figures for 2001.

Source: U.S. Department of Commerce, Bureau of Economic Analysis, U.S. Direct Investment Position Abroad on a Historical Cost Basis.

Table 6: Japanese Investment in Hong Kong in Yearly Flows for 1997-2001 in US$ Millions.

Year	Amount
1997	705
1998	588
1999	951
2000	960
2001	305

Source: Japan Ministry of Finance. Figures are direct investment flows per Japanese
Fiscal Year (April 1 to March 31).

Exchange rate:
1997 (average): 120.99 Yen/US$
1998 (average): 130.91 Yen/US$
1999 (average): 113.91 Yen/US$
2000 (average): 107.77 Yen/US$
2001 (average): 121.53 Yen/US$

Table 7: Japanese Investment in Hong Kong Sectors Breakdown for 1998/1999/2000/2001 in US$ Millions.

SECTORS	1998	1999	2000	2001
Manufacturing	105.42	132.56	101.14	65.83
Finance	188.68	261.61	228.26	66.65
Trade	245.97	419.63	494.57	146.47
Service	38.96	52.67	58.46	9.87
Real Estate	0	25.46	2.78	1.65
Transport	0	50.04	74.23	13.99
Others	9.93	8.78	0	0
TOTAL	588.19	950.75	959.45	304.45

Source: Japanese Ministry of Finance.

Exchange rate:
1998 (average): 130.91 Yen/US$
1999 (average): 113.91 Yen/US$
2000 (average): 107.77 Yen/US$
2001 (average): 121.53 Yen/US$

Table 8: Hong Kong's Pledged and Actual Direct Investment in China in US$ Billions and Percent Share of Total Investment in China.

Year	Amount Pledged	Actually Invested	Share of Total Investment
1990	3.8	1.9	58.0
1991	7.2	2.4	60.0
1992	40.0	2.5	69.0
1993	74.0	17.2	66.0
1994	49.0	20.0	60.0
1995	42.1	20.4	54.4
1996	28.4	20.9	50.1
1997	18.5	21.7	47.9
1998	17.6	18.5	42.6
1999	13.3	16.4	40.6
2000	17.4	16.2	39.8
1978-2000	328.4	171.0	49.0

Source: PRC Ministry of Foreign Trade and Economic Cooperation (MOFTEC).

Table 9: Major Foreign Investor Firms.

United States: American International Group, AT&T, Bank of America, Caltex, Citibank, Coca-Cola, Compaq Computer, CSX, Disney, Exxon, Federal Express, Goldman Sachs, IBM, JP Morgan Chase, Kodak, Merrill Lynch, Mobil, Morgan Stanley Dean Witter, Motorola, Pacific Waste Management, Pepsi.

Japan: C. Itoh, Citizen Watches, Daido Concrete, Hitachi, Jusco, Mitsubishi, NEC, Nishimatsu, Nomura, Olympus, Uny.

United Kingdom: HSBC, Inchcape Pacific, Jardine Matheson, Lloyds, P & O Shipping, Standard Chartered Bank, Swire Pacific Group.

West Europe: Carlsberg (Denmark), Hong Kong Petrochemicals (Italian/Korean/Chinese joint venture), Siemens, Heraeus (Germany), Philips (Netherlands); Bouygues/Dragages, Bachy-Soletanches, Banque National de Paris, Banque Indosuez, Chanel, Cartier, Christian Dior, Remy (France), Ericsson, Asea Brown Boveri, Tetrapak, Electrolux (Sweden).

China: Bank of China (Hong Kong), Beijing Enterprises, China Everbright, China Investment and Trust Corporation (CITIC), China Merchants, China Mobile, China National Offshore Oil Corporation (CNOOC), China National Petroleum Corporation, China Ocean Shipping Co (COSCO), China Overseas Construction, China Resources, China Travel Services, China Unicom, Guangdong Enterprises, Legend Holdings, Petro China, Shanghai Industrial, Yue Xiu Enterprises.

Asia: San Miguel Brewery (Philippines), News Corp., Pioneer (Australia), Sime Darby, Shangri-la/Kerry Trading (Malaysia), Park View Properties (Taiwan), Lippo Group (Indonesia), C.P. Pokphand (Thailand), LG Semicon (South Korea), First Pacific Group (Indonesia)

CHAPTER 8 TRADE AND PROJECT FINANCING

A. Banking System

Hong Kong has an open financial system, with no controls on currency movement. A more complete description is contained in Chapter 7 Section I above.

B. Foreign Exchange Controls Affecting Trading

The local currency, the Hong Kong Dollar (HK$), is freely convertible and there are no foreign exchange controls.

C. General Availability of Financing

Commercial trade financing is available in Hong Kong for qualified customers. All licensed banks are authorized to provide loans to residents and non-residents in the currency of their choice. Letters of credit and other financial instruments are widely used to protect participants in trade arrangements. All banks maintain close working relationships with correspondent banking institutions. The financial system is highly developed and efficient.

D How to Finance Exports/Methods of Payment

The preferred method of quoting is "CIF" or "C and F" in HK$. The U.S. dollar and other freely convertible currencies may be accepted for bids and pro forma invoicing. Terms of payment depend on the relative negotiating strength of the buyers and sellers. U.S. suppliers should seek to obtain letters of credit or sight draft terms when dealing with buyers who are not well known to them. Asking for a letter of credit is a standard business practice, and your potential customer will not generally interpret this as a sign of mistrust.

The importance of trade finance to Hong Kong has resulted in a high level of bank efficiency in providing import payment services. Letters of Credit, document collection and international remittance are widely available. The risk of financing receivables can be readily evaluated via locally available credit information. Prospective exporters should make use of banking relationships to determine credit risk.

E. Types of Available Export Financing and Insurance

The U.S. EX-IM Bank offers both trade financing and insurance for U.S. exports (see below). Commercial vendors are also readily available.

Export Credits: The U.S. Exports-Import Bank, an independent agency of the U.S. government, seeks to increase the competitive position of U.S.-based exporters in overseas markets. By providing export insurance, loan guarantees, direct loans and other types of financing support EX-IM Bank supports the sales of U.S. exports and thereby creates U.S. jobs. The terms and conditions of standard financing are governed by the OECD Arrangement on export credits. Direct lending rates are set monthly and are called Commercial Interest Reference Rates (CIRRs).

For more information concerning EX-IM Bank programs and application procedures contact EX-IM Bank in Washington, D.C. at (800) 565-EXIM or (202) 565-3545. In China, contact the EX-IM Bank Representative, Mr. Douglas C. Lee, at the Commerce Department's Foreign Commercial Service Beijing Office – Tel: (8610) 8529-6655, Fax: (8610) 8529-6558. Fee calculations and applications can be found on-line at the web site www.exim.gov.

F. Availability of Project Finance/OPIC and Eximbank Project Finance/Lending from Multilateral Institutions

Hong Kong and Macau are not recipients of official development assistance (i.e. OPIC, AID). Projects are financed on commercial terms. Hong Kong is also a major center for commercial project financing for China. The U.S. Trade and Development Agency programs are available for Hong Kong and Macau.

U.S. Trade & Development Agency funds feasibility studies, orientation visits, specialized training grants, business workshops and technical assistance worldwide. TDA is active in more than 60 countries and has recently opened its programs in China after a 12-year break. In order to be eligible for assistance, projects must have a procurement process open to U.S. firms, represent an opportunity for sales of U.S. goods and services and be a development priority of the country where the project is located. Contact Mr. Geoff Jackson, Regional Director for Asia/Pacific, at TDA's Arlington, VA office. Tel: (703) 875-4357, Fax: (703) 875-4009. Web site: www.tda.gov.

G. List of Banks with Correspondent U.S. Banking Arrangements

The list of Hong Kong based banks with correspondent U.S. banking arrangements is too large to include here. Chapter 11 Section F provides a list of U.S. banks licensed in Hong Kong. Hong Kong's five largest local banks are indicated in Chapter 7 Section I, above.

H. The Asian Development Bank

Asia's premier non-profit financial institution, the Asian Development Bank (ADB), is headquartered in Manila, Philippines. ADB was founded in 1966 and is owned by 60 member countries. The United States and Japan are the largest shareholders. The Bank's regional membership extends from the Far East to South Asia, through the Pacific Islands up to Central Asia. The newest member, Portugal, joined in 2001.

ADB's total lending in 2001 totaled $5.4 billion. In addition, the bank provided $146.4 million in technical assistance to its member countries. For the second straight year, India was the largest borrower (28.1 percent of total, or $1.5 billion). The PRC, traditionally the largest borrower, came in second (18.7 percent or $997 million). Third largest was Pakistan (17.9 percent or $956.8 million), followed by Indonesia (9.4 percent or $500 million), Bangladesh (5.6 percent or 297.9 million), and Vietnam (4.9 percent or $260.6 million).

ADB's lending portfolio generates commercial opportunities in borrowing countries for consultants, equipment suppliers, contractors, banks and project sponsors from the bank's member countries. In 2001, American companies won $309 million worth of contracts under ADB projects for a wide range of equipment and services. The United States maintained its number one ranking in total procurement awards for the year among donor countries. Cumulatively, U.S. companies have won $4.8 billion worth of contracts since the bank began its operations.

Sectorally, transport and communications received the largest share of bank lending in 2001, garnering 26.7 percent of total lending. As ADB focused on cross-cutting issues, "multisector" projects ranked second with 14.2 percent, followed by "others", 14 percent. Energy follows with 12.4 percent; agriculture and natural resources – 11.3 percent; finance –10.6 percent; social infrastructure – 9.2 percent; and industry and non-fuel minerals – 1.6 percent. (Detailed plans for each borrowing member country and project information can be found on the ADB website: www.adb.org.)

Aside from its public sector operations, ADB also lends directly to the private sector where its participation serves to mobilize further investments for projects that have a high developmental impact. In 2001, ADB's loan/equity assistance to the private sector totaled $67.8 million for 6 projects, including two pioneering projects in the social sector; pilot projects in healthcare and education in Vietnam. ADB also invested in a private equity fund in Thailand and a new housing bank in Sri Lanka.

ADB maintains resident offices in Bangladesh, Cambodia, China, India, Indonesia, Laos, Kyrgyz Republic, Nepal, Pakistan, Philippines, Sri Lanka, Vietnam, Vanuatu (for the South Pacific), Uzbekistan, Kazakhstan and Mongolia; a field office in Gujarat, India, and a country office in the Philippines. The bank also maintains three representative offices in Tokyo, Washington, D.C. and Frankfurt.

The U.S. Department of Commerce maintains a Congressionally mandated Commercial Liaison Office for the ADB (CS ADB). The Office's mission is to help American firms access, enter and expand in Asian markets that benefit from ADB assistance. For example, the office provides counseling, advocacy, project information and conducts outreach programs in the region as well as in the United States to help U.S. firms take advantage of commercial opportunities in countries borrowing from the ADB. In 2001, CS ADB brought ADB consulting/procurement officials to Honolulu, Phoenix, Boston and Birmingham, and organized a U.S. Global Pavilion during the ADB's 34th Annual Meeting in Honolulu, Hawaii.

To perform its mandate, the office cooperates with the U.S. Director's Office at ADB and works closely with Commercial Service posts in the region. CS ADB's cooperation with CS Hong Kong has resulted in a number of project development efforts to help U.S. consortia and their affiliates better access ADB's private sector window. An American Senior Commercial Officer, Stewart Ballard, heads the office, assisted by two Commercial Specialists. One, a Commercial Environmental Specialist, is funded by the US-Asia Environmental Partnership (US-AEP) and focuses exclusively on environment projects in South and Southeast Asia, including Hong Kong and Taipei. CS/ADB invites American firms to work with it in pursuing ADB commercial and infrastructure project development opportunities. The office's contact information:

Address:
The U.S. Commercial Liaison Office for ADB (CS/ADB)
American Business Center
25th Floor, Ayala Life-FGU Building
6811 Ayala Avenue
Makati City, Philippines 1226

U.S. mailing address:
PSC 500 Box 33
FPO AP 96515-1000

E-mail: manila.adb.office.box@mail.doc.gov
Telephones: (632) 887-1345(-7)
Fax: (632) 887-1164

CHAPTER 9 BUSINESS TRAVEL

A. Business Customs

Over the years, Hong Kong has developed as a unique society based on a blend of Chinese tradition and western technology. Most people who are familiar with Hong Kong know that Hong Kong means business. Above all, it is a society that emphasizes hard work and success.

Americans encounter few if any cultural problems when conducting business in Hong Kong. Americans should be aware that Hong Kong people tend to be more formal than many Americans. Business acquaintances are addressed as Mr. or Ms. unless they state that their first name should be used. Business cards are exchanged frequently and the exchange should be fairly formal: the card should be accepted with both hands and a moment taken to read it carefully. "Face" is very important, and problems or areas of disagreement are handled indirectly to avoid loss of "face." While a study of local customs and practices may be helpful, most people in Hong Kong are sufficiently familiar with Western customs that they are tolerant of cultural differences. Business contacts should be treated the same as a formal business relationship in the United States. Western business attire (suit and tie for men, business suits for women) is appropriate.

B. Travel Advisory and Visas

Visas allowing residence and local employment for expatriates are granted on the basis of simple, comprehensible procedures, are handled in a timely manner and managed in a way that is consistent with the interests of employees. There are no quotas, bonds, or guarantees required. All residents are equal under the law, enjoy freedom of movement, access to public education, and basic civil freedoms.

Visiting Americans generally fit in well. Most Hong Kong business executives speak English, and are accustomed to dealing with Westerners.

C. Holidays

2002

October 1		National Day
October 14		Chung Yeung Festival
December 25		Christmas Day
December 26		First week-day after Christmas Day

2003

January 1		New Year's Day
January 31		* see note
February 1		Lunar New Year's Day
February 2		Second day of the Lunar New Year
February 3		Third day of the Lunar New Year
April 5		Ching Ming Festival
April 18		Good Friday
April 19		Day following Good Friday
April 21		Easter Monday
May 1		Labor Day
May 8		Buddha's Birthday
June 4		Tuen Ng Festival
July 1		Hong Kong Special Administrative Region Establishment Day
September 12		Day following Chinese Mid-Autumn Festival
October 1		National Day
October 4		Chung Yeung Festival
December 25		Christmas Day
December 26		First week-day after Christmas Day

* As the second day of the Lunar New Year falls on a Sunday, the day preceding the Lunar New Year's Day will be designated as an additional general holiday.

D. Business Infrastructure (e.g. transportation, language, communications, housing, health, food)

Housing, food, telecommunications, transportation and healthcare are all available at levels comparable to major American cities. Most people live in apartments in high-rise buildings. Rents for housing are very high. Hong Kong has many different types of restaurants, offering a wide variety of international foods. Grocery stores are also stocked with an international selection of items. Communications facilities are excellent. Long distance telephone and facsimile services can be easily arranged with telecommunications companies, and are available in hotels and business centers. Hong Kong also has a very good public transportation system. Major modes of transportation include buses, the Mass Transit Railway (underground subway system), trams, ferries, the Kowloon-Canton Railway and taxis. In addition, almost all major airlines service Hong Kong. Healthcare facilities are also excellent, and Hong Kong's private hospitals and private physicians are of international standards.

Your business partners will often speak English, and will negotiate on a very business-like basis. It should be noted however, that as companies from China continue to expand their business activities in Hong Kong, more business is being conducted in Mandarin. When conducting business with these companies, U.S. business people may be well advised to bring along a Mandarin-English interpreter to avoid any misunderstandings.

E. Temporary Entry of Goods (e.g. laptop computers, software, exhibit materials)

Hong Kong Customs does not restrict the temporary import of goods into Hong Kong, such as laptop computers, software and general exhibit materials, for business purposes so long as the goods are not restricted items which normally require an import license. The temporary import of supercomputers, which is a controlled item, or of any exhibit materials which are also controlled items, would require a license even if the commodity is being shipped in only for exhibit purposes.

U.S. business travelers are encouraged to obtain a copy of the "Key Officers of Foreign Service Posts: Guide for Business Representatives" available for sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402; tel.: (202) 512-1800; fax: (202) 512-2250. General and country-specific travel information can be retrieved from the Department of State's web site at http://travel.state.gov. Business travelers to Hong Kong seeking appointments with U.S. Consulate General Hong Kong officials should contact the Commercial Section in advance. The Commercial Section can be reached by telephone at (852) 2521-1467, fax at (852) 2845-9800, or email at Hong.Kong.Office.Box@mail.doc.gov or visit our web site at: www.usconsulate.org.hk.

CHAPTER 10 ECONOMIC AND TRADE STATISTICS

APPENDIX A -- COUNTRY DATA

a. Population 6.8 million (End-2001)
b. Population Growth Rate 0.7%
c. Religion(s) Buddhism, Taoism, Christianity (all denominations), Confucianism, small numbers of Moslems, Hindus, Jews, and Sikhs.
d. Government System Reverted to Chinese sovereignty and became a Special Administrative Region of China on July 1, 1997 with a high degree of autonomy until 2047.
e. Language(s) English and Cantonese are the languages of administration and commerce. Mandarin Chinese is becoming more common.
f. Workweek Business hours are 9 to 5, Monday through Friday. Many companies now have a 5-day workweek.

APPENDIX B -- DOMESTIC ECONOMY

(US$ Millions, unless otherwise noted)

	2000	2001	2002 (forecast)
a. GDP (current prices)	162,280	161,818	169,909
b. Real GDP Growth (%)	10.5	0.1	1.0
c. GDP Per Capita (US$) (current prices)	24,348	24,070	24,544
d. Government Spending as % of GDP (FY)	21.4	19.0	20.2
e. Inflation (%)	-3.8	-1.6	-2.8
f. Unemployment (%)	4.9	5.1	7.5
g. Foreign Exchange Reserves	107,583	111,174	116,733
h. Average Exchange Rate for US$1.00	7.791	7.799	7.792
i. Debt Service Ratio *	N/A	N/A	N/A
j. U.S. Military/Economic Assistance	N/A	N/A	N/A

Sources: Hong Kong Government; forecasts for 2002, except for real GDP growth, nominal GDP, inflation and unemployment are U.S. Consulate General estimates.

Note: Beginning July 1, 1997, the Land Fund, estimated to be US$19.2 billion, has been included in the Foreign Exchange Reserves.

* Hong Kong has no foreign debt.

APPENDIX C -- TRADE STATISTICS

(US$ Millions, unless otherwise noted)

	2000	2001	2002 (forecast)
a. Total Hong Kong Exports
-- Total Exports (including re-exports)	201,627	189,870	191,389
-- Of which: Domestic Exports	23,201	19,682	18,895
b. Total Hong Kong Imports
-- Total Imports	212,559	201,051	201,553
-- Total Imports	63,871
c. U.S. Exports
-- U.S. Exports to Hong Kong	14,380	13,461	13,706
d. U.S. Imports
-- Hong Kong Exports to the U.S.
(domestic exports)	6,979	6,101	5,857
(re-exports)	39,878	36,178	37,490

Note: The above statistics are based on Hong Kong Government trade statistics. U.S. Department of Commerce statistics show U.S. exports to Hong Kong in 2001 of $14.1 billion, and imports from Hong Kong of $9.7 billion.

The 2002 number is based on U.S. Consulate General unofficial projections.

Sources: Hong Kong Government

CHAPTER 11 U.S. AND HONG KONG CONTACTS

A. U.S. Consulate General Trade-Related Contacts

Commercial Service -- Hong Kong

Senior Commercial Officer: Barry Friedman
Deputy Senior Commercial Officer: David Murphy
Commercial Officer: Dien Ly
U.S. Consulate General
26 Garden Road
Hong Kong
Tel: (852) 2521-1467
Fax: (852) 2845-9800
E-mail: Hong.Kong.Office.Box@mail.doc.gov
Web site: www.usconsulate.org.hk

Economic/Political Section -- Hong Kong

Chief: Lisa Kubiske
U.S. Consulate General
26 Garden Road
Hong Kong
Tel: (852) 2841-2101
Fax: (852) 2526-7382

Foreign Agricultural Service -- Hong Kong

Agricultural Trade Officer: Lloyd Harbert
Asst. Agricultural Trade Officer: George Ferris
U.S. Consulate General
26 Garden Road
Hong Kong
Tel: (852) 2841-2350
Fax: (852) 2845-0943
E-mail: ATOHongKong@fas.usda.gov

Department of Commerce -- International Trade Administration

Office of PRC and Hong Kong, Director: Cheryl McQueen
Country Desk Officer: Zarema Arutyunova
U.S. Department of Commerce
Room 2317, Office of China, Hong Kong and Mongolia
14th & Constitution Ave, NW
Washington, D.C. 20230
Tel: (202) 482-3932
Fax: (202) 482-1576

US&FCS Office of International Operations, Regional Director: Ann Bacher
U.S. Department of Commerce
Room 1229, Office of International Operations
14th & Constitution Ave, NW
Washington, D.C. 20230
Tel: (202) 482-2422
Fax: (202) 501-6165

Department of State

Country Desk Officer: Demetria Scott
U.S. Department of State
Office of Chinese and Mongolian Affairs
Room 4318, Washington, D.C. 20520
Tel: (202) 647-9141
Fax: (202) 647-6820

U.S. Commercial Service Offices in China:

Beijing
U.S. Commercial Service
31st Floor, North Tower
Beijing Kerry Center, No. 1 Guanghua Lu
Beijing 100020, China
Tel: (86-10) 8529-6655
Fax: (86-10) 8529-6558/9
E-mail: Beijing.Office.Box@mail.doc.gov

Chengdu
U.S. Commercial Service
4 Lingshiguan Lu, Renmin Nanlu Section 4
Chengdu
Sichuan 610041, China
Tel: (86-28) 558-3992/9642
Fax: (86-28) 558-9221/3520
E-mail: Chengdu.Office.Box@mail.doc.gov

Guangzhou
U.S. Commercial Service
14/F, China Hotel Office Tower, Room 1461
Liu Hua Road
Guangzhou 510015, China
Tel: (86-20) 8667-4011
Fax: (86-20) 8666-6409
E-mail: Guangzhou.Office.Box@mail.doc.gov

Shanghai
U.S. Commercial Service
Shanghai Centre, Suite 631
1376 Nanjing West Road
Shanghai 200040, China
Tel: (86-21) 6279-7630
Fax: (86-21) 6279-7639
E-mail: Shanghai.Office.Box@mail.doc.gov

Shenyang
U.S. Commercial Service
52 Shi Si Wei Lu
Shenyang
Liaoning Province 110003, China
Tel: (86-24) 2322-1198 ext. 189
Fax: (86-24) 2322-2206

B. American Chamber of Commerce and U.S. China Business Council

American Chamber of Commerce in Hong Kong
Frank G. Martin, President
1904 Bank of America Tower
12 Harcourt Road
Central, Hong Kong
Tel: (852) 2526-0165
Fax: (852) 2810-1289
E-mail: amcham@amcham.org.hk
Web site: http://www.amcham.org.hk

U.S. China Business Council
Suite 200, 1818 N. St., NW
Washington, D.C. 20036-2470
Tel: (202) 429-0340
Fax: (202) 775-2476
Web site: http://www.uschina.org

C. Hong Kong Trade or Industry Associations in Key Sectors

Chinese General Chamber of Commerce, Hong Kong
Dr. Robin Chan Yau-hing, Chairman
4th Floor, 24-25 Connaught Road
Central, Hong Kong
Tel: (852) 2525-6385
Fax: (852) 2845-2610
E-mail: cgcc@cgcc.org.hk
Web site: http://www.cgcc.org.hk

Chinese Manufacturers' Association of Hong Kong
Mr. Chan Wing Kee, President
CMA Building
64-66 Connaught Road
Central, Hong Kong
Tel: (852) 2542-8600
Fax: (852) 2541-4541
E-mail: info@cma.org.hk
Web site: www.cma.org.hk

The Cosmetic & Perfumery Association of Hong Kong Ltd.
Mr. Jacky Ho Sang Choi, President
Room 308, Winning Commercial Building
46-48 Hillwood Road
Tsimshatsui, Kowloon
Hong Kong
Tel: (852) 2366-8801
Fax: (852) 2312-0348
E-mail: cosasso@netvigator.com
Web site: www.cosmetic-perfume.com

Federation of Hong Kong Industries
Mr. Victor Lo Chung-wing, Chairman
4th Floor, Hankow Center
5-15 Hankow Road, Tsimshatsui
Kowloon, Hong Kong
Tel: (852) 2732-3188
Fax: (852) 2721-3494
E-mail: fhki@fhki.org.hk
Web site: http://www.fhki.org.hk

Graphic Arts Association of Hong Kong Ltd.
Mr. Derek Yip, Chairman
Room 2307, Billion Trade Centre
31 Hung To Road, Kwun Tong
Kowloon, Hong Kong
Tel: (852) 2856-9760
Fax: (852) 2856-9765
E-mail: gaahk@iawhk.com
Web site: http://www.gaahk.org.hk

Hong Kong Air Traffic Control Association
Mr. Patrick Yam Kwok Ming, President
Air Traffic Management Division
Civil Aviation Department
1 Control Tower Road
Hong Kong International Airport
Lantau, Hong Kong
Tel: (852) 2910-6461
Fax: (852) 2910-1177

Hong Kong Association for the Advancement of Science & Technology
Dr. Lui Sun Wing, President
Flat A, 2/F, Tak Lee Commercial Building
113-117 Wanchai Road
Wanchai, Hong Kong
Tel: (852) 2891-3388
Fax: (852) 2838-1823
E-mail: info@hkaast.org.hk

Hong Kong Association of Certification Laboratories Ltd.
Mr. Nigel Cheung, Chairman
1/F, CMA Building
64-66 Connaught Road
Central, Hong Kong
Tel: (852) 2542-8620
Fax: (852) 2541-4541
E-mail: acl@cma.org.hk
Web site: www.hkacl.org

Hong Kong Association of the Pharmaceutical Industry
Mr. Stephen Leung, President
Room A, 13/F, Trust Tower
68 Johnston Road
Wan Chai, Hong Kong
Tel: (852) 2528-3061
Fax: (852) 2865-6283
E-mail: hkapi@netvigator.com

Hong Kong Aviation Club Ltd.
Mr. Alex T. C. Yan, President
31 Sung Wong Toi Road
Kowloon, Hong Kong
Tel: (852) 2713-5171
Fax: (852) 2761-9511
E-mail: hkac@netvigator.com
Web site: www.hkaviationclub.com.hk

Hong Kong/United States Business Council
c/o Hong Kong Trade Development Council
Miss Jenny Koo, Secretary
38th Floor, Office Tower, Convention Plaza
1 Harbour Road
Wanchai, Hong Kong
Tel: (852) 2584-4333
Fax: (852) 2583-9275
E-mail: hktdc@tdc.org.hk
Web site: www.tdctrade.com

Hong Kong Chinese Enterprises Association
Mr. Liu Jin Bao, Chairman
Room 2104-6, Harbour Centre
25 Harbour Road
Wanchai, Hong Kong
Tel: (852) 2827-2831
Fax: (852) 2827-2606
E-mail: info@hkcea.com
Web site: www.hkcea.com

The Hong Kong Chinese Importers' & Exporters' Association
Mr. Hui Cheung Ching, President
7-8th Floors, Champion Building
287-291 Des Voeux Road
Central, Hong Kong
Tel: (852) 2544-8474
Fax: (852) 2544-4677/2581-4979
E-mail: info@hkciea.org.hk
Web site: www.hkciea.org.hk

Hong Kong Computer Society
Mr. Daniel Lai, President
Room 1915, China Merchants Tower
Shun Tak Centre
168 Connaught Road Central
Hong Kong
Tel: (852) 2834-2228
Fax: (852) 2834-3003
E-mail: hkcs@hkcs.org.hk
Web site: www.hkcs.org.hk

Hong Kong Construction Association
Mr. Billy Wong, President
3/F, 180-182 Hennessy Road
Wanchai, Hong Kong
Tel: (852) 2572-4414
Fax: (852) 2572-7104
E-mail: admin@hkca.com.hk
Web site: www.hkca.com.hk

The Hong Kong Electronics Industries Association Ltd.
Mr. Samson Tam, Chairman
Room 1201, 12/F, Harbour Crystal Centre
100 Granville Road
Tsimshatsui East, Kowloon
Hong Kong
Tel: (852) 2778-8328
Fax: (852) 2788-2200
E-mail: hkeia@hkeia.org
Web site: www.hkeia.com

The Hong Kong Federation of Insurers
Mr. K. P. Cheng, Chairman
29/F, Sunshine Plaza
353 Lockhart Road
Wanchai, Hong Kong
Tel: (852) 2520-1868
Fax: (852) 2520-1967
E-mail: hkfi@hkfi.org.hk
Web site: www.hkfi.org.hk

Hong Kong Franchise Association
Ms. Charlotte Chow, General Manager
c/o Hong Kong General Chamber of Commerce
22/F, Unit A, United Centre
95 Queensway, Admiralty
Hong Kong
Tel: (852) 2529-9229
Fax: (852) 2527-9843
E-mail: hkfa@franchise.org.hk
Web site: www.franchise.org.hk

The Hong Kong General Chamber of Commerce
Mr. Christopher Cheng, Chairman
22nd Floor, United Center
95 Queensway
Hong Kong
Tel: (852) 2529-9229
Fax: (852) 2527-9843
E-mail: chamber@chamber.org.hk
Web site: www.chamber.org.hk

Hong Kong Institution of Engineers
Mr. John Luk, President
9/F, Island Beverley
No. 1 Great George Street
Causeway Bay, Hong Kong
Tel: (852) 2895-4446
Fax: (852) 2577-7791

The Hong Kong Medical Association
Dr. Lo Wing Lok, President
5/F, Duke of Windsor Social Service Building
15 Hennessy Road
Wanchai, Hong Kong
Tel: (852) 2527-8285
Fax: (852) 2865-0943
E-mail: hkma@hkma.org
Web site: http://www.hkma.org

Hong Kong PATA (Pacific Asia Travel Association) Chapter
Mr. Edmund Tsang, Chairman
Room 1003, Tung Ming Building
40 Des Voeux Road
Central, Hong Kong
Tel: (852) 2869-8600
Fax: (852) 2869-8632
E-mail: adminassoc@ctimail3.com

Hong Kong Plastic Material Suppliers Association Ltd.
Mr. Sho-Yung Chu, Chairman
12/F, Eader Center
39-41 Hankow Road
Tsimshatsui, Kowloon
Hong Kong
Tel: (852) 2375-2686
Fax: (852) 2317-1129

Hong Kong Printers Association
Mr. Ho Ka Hun, Chairman
1/F, 48-50 Johnston Road
Wanchai, Hong Kong
Tel: (852) 2527-5050
Fax: (852) 2861-0463
E-mail: printers@hkprinters.org
Web site: www.hkprinter.org

Internet & Telecom Association of Hong Kong
Mr. Tony Hau, Chairman
G.P.O. Box 13461
Hong Kong
Tel: (852) 2504-2732
Fax: (852) 2504-2752
E-mail: info@itahk.org.hk
Web site: www.itahk.org.hk

Plastic Technology Center
Mr. Samson Suen, Consultant
LG/2, HKPC Building
78 Tat Chee Avenue
Kowloon Tong, Kowloon
Hong Kong
Tel: (852) 2788-6168
Fax: (852) 2788-6169
E-mail: ptc@hkpc.org
Web site: www.hkpc.org/ptc

Society of Builders Hong Kong
Mr. Tong Yat Chu, President
Rooms 801-802, On Lok Yuen Building
25 Des Voeux Road Central
Central, Hong Kong
Tel: (852) 2523-2081
Fax: (852) 2845-4749

Travel Industry Council of Hong Kong
Mr. Ronnie Yuen, Chairman
Rooms 1706-1709, Fortress Tower
250 King's Road
North Point, Hong Kong
Tel: (852) 2807-1199
Fax: (852) 2510-9907
E-mail: office@tichk.org
Web site: www.tichk.org

D. Hong Kong Government Offices Relating to Key Sectors and/or Significant Trade Related Activities

Agriculture, Fisheries and Conservation Department
Mrs. Lessie Wei, Director
5/F, Cheung Sha Wan Government Offices
303 Cheung Sha Wan Road
Kowloon, Hong Kong
Tel: (852) 2708-8885, 2150-6666
Fax: (852) 2311-3731
E-mail: afcdenq@afcd.gov.hk
Web site: http://www.info.gov.hk/afcd

Airport Authority Hong Kong
Dr. Victor Kwok-king Fung, Chairman
Airport Authority Building
1 Cheong Yip Road
Hong Kong International Airport
Lantau, Hong Kong
Tel: (852) 2188-7111
Fax: (852) 2824-0717
Web site: www.hkairport.com

Buildings Department
Mr. Leung Chin-Man, Director
18/F, Pioneer Centre
750 Nathan Road, Mongkok
Kowloon, Hong Kong
Tel: (852) 2626-1616
Fax: (852) 2840-0451
E-mail: bdenq@bd.gov.hk
Web site: http://www.info.gov.hk/bd/

Census and Statistics Department
Mr. Frederick Ho, Commissioner for Census and Statistics
21st Floor, Wanchai Tower
12 Harbour Road
Wanchai, Hong Kong
Tel: (852) 2582-4807
Fax: (852) 2824-1003
E-mail: genenq@censtatd.gov.hk
Web site: http://www.info.gov.hk/censtatd/

Civil Aviation Department
Mr. Albert Lam, Director-General
46th Floor, Queensway Government Offices
66 Queensway, Hong Kong
Tel: (852) 2867-4332
Fax: (852) 2869-0093
E-mail: enquiry@cad.gov.hk
Web site: http://www.info.gov.hk/cad

Consumer Council
Mrs. Pamela Chan, Chief Executive
22nd Floor, K. Wah Center
191 Java Road
North Point, Hong Kong
Tel: (852) 2856-3113
Fax: (852) 2856-3611
E-mail: cc@consumer.org.hk
Web site: www.consumer.org.hk

Customs and Excise Department
Mr. Raymond Hung-Chiu Wong, Commissioner
9th Floor, Harbour Building
38 Pier Road
Central, Hong Kong
Tel: (852) 2815-7711
Fax: (852) 2542-3334
E-mail: customsenquiry@customs.gov.hk
Web site: www.info.gov.hk/customs

Department of Health
Dr. Margaret Chan, Director
17th & 21st Floors, Wu Chung House
213 Queen's Road East
Wanchai, Hong Kong
Tel: (852) 2961-8989
Fax: (852) 2836-0071
E-mail: dhenq@dh.gcn.gov.hk
Web site: http://www.info.gov.hk/dh

Drainage Services Department
Mr. John Collier, Director
43rd Floor, Revenue Tower
5 Gloucester Road
Wanchai, Hong Kong
Tel: (852) 2877-0660
Fax: (852) 2827-8605
E-mail: enquiry@dsd.gov.hk
Web site: www.info.gov.hk/dsd

Electrical and Mechanical Services Department
Mr. Roger S. H. Lai, Director
98 Caroline Hill Road
Causeway Bay, Hong Kong
Tel: (852) 2882-8011
Fax: (852) 2890-7493
E-mail: info@emsd.gov.hk
Web site: www.emsd.gov.hk

Environmental Protection Department
Mr. Robert J.S. Law, Director
24th-28th Floors, Southorn Centre
130 Hennessy Road
Wanchai, Hong Kong
Tel: (852) 2835-1018
Fax: (852) 2838-2155
E-mail: enquiry@epd.gov.hk
Web site: www.info.gov.hk/epd

Government Supplies Department
Mr. Gregory W. L. Leung, Director
10/F, North Point Government Offices
333 Java Road
North Point, Hong Kong
Tel: (852) 2231-5105
Fax: (852) 2887-6591
E-mail: info@gsd.gcn.gov.hk
Web site: www.info.gov.hk/gsd

Hong Kong Productivity Council
Mr. Kenneth Fang, Chairman
HKPC Building
78 Tat Chee Avenue
Yau Yat Chuen, Kowloon Tong
Kowloon, Hong Kong
Tel: (852) 2788-5678
Fax: (852) 2788-5900
E-mail: hkpcenq@hkpc.org
Web site: www.hkpc.org

Hong Kong Tourism Board
Miss Clara Ming-Wah Chong, Executive Director
9-11/F, Citicorp Centre
18 Whitfield Road
North Point, Hong Kong
Tel: (852) 2807-6543
Fax: (852) 2806-0303
E-mail: info@discoverhongkong.com
Web site: www.discoverhongkong.com

Hong Kong Trade Development Council
Mr. Michael Sze, Executive Director
38th Floor, Office Tower
Convention Plaza
1 Harbour Road
Wanchai, Hong Kong
Tel: (852) 2584-4333
Fax: (852) 2824-0249
E-mail: hktdc@tdc.org.hk
Web site: www.tdctrade.com

Hospital Authority
Dr. Lo Ka Shui, Chairman
Hospital Authority Building
147B Argyle Street
Kowloon, Hong Kong
Tel: (852) 2300-6555
Fax: (852) 2881-8058
E-mail: webmaster@ha.org.hk
Web site: www.ha.org.hk

Innovation and Technology Commission
Mr. Francis Ho, Commissioner
14th Floor, Ocean Center
5 Canton Road, Tsimshatsui
Kowloon, Hong Kong
Tel: (852) 2737-2208
Fax: (852) 2730-4633
E-mail: enquiry@itc.gov.hk
Web site: www.info.gov.hk/itc

Intellectual Property Department
Mr. Stephen Selby, Director
24th & 25th Floor, Wu Chung House
213 Queen's Road East
Wanchai, Hong Kong
Tel: (852) 2803-5860/2961-6901
Fax: (852) 2838-6276
E-mail: enquiry@ipd.gov.hk
Web site: www.info.gov.hk/ipd

Office of the Commissioner of Insurance
Mr. Benjamin Tang, Commissioner
21st Floor, Queensway Government Offices
66 Queensway
Central, Hong Kong
Tel: (852) 2867-2565
Fax: (852) 2869-0252
E-mail: iamail@oci.gov.hk
Web site: www.info.gov.hk/oci

Office of the Telecommunications Authority
Mr. Anthony Wong, Director General
29th Floor, Wu Chung House
213 Queen's Road East
Wanchai, Hong Kong
Tel: (852) 2961-6333
Fax: (852) 2803-5110
E-mail: webmaster@ofta.gov.hk
Web site: www.ofta.gov.hk

Trade and Industry Department
Mr. Joshua Law, Director-General
Ground Floor, Trade and Industry Department Tower
700 Nathan Road, Mong Kok
Kowloon, Hong Kong
Tel: (852) 2398-5333
Fax: (852) 2789-2491, (825) 2789-2435
E-mail: tidenq@tid.gcn.gov.hk
Web site: www.info.gov.hk/tid

E. Hong Kong Market Research Firms

AC Nielsen
2/F, Warwick House
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
Tel: (852) 2563-9688
Fax: (852) 2516-6856
E-mail: info@acnielsen.com.hk
Web site: www.acnielsen.com.hk

Arthur Andersen & Co.
21/F, Edinburgh Tower
Landmark, 15 Queen's Road
Central, Hong Kong
Tel: (852) 2852-0222
Fax: (852) 2815-0548
Web site: www.arthurandersen.com

Boston Consulting Group, The
34th Floor, Times Square
Shell Tower, 1 Matheson Street
Causeway Bay, Hong Kong
Tel: (852) 2506-2111
Fax: (852) 2506-9084
Web site: www.bcg.com

Gartner Group Hong Kong Ltd.
Suite 6808, 68/F., Central Plaza
18 Harbour Road
Wanchai, Hong Kong
Tel: (852) 3402-0402
Fax: (852) 2824-6138
Web site: www.gartner.com

Hong Kong Productivity Council
Marketing Group
HKPC Building
78 Tat Chee Avenue
Yau Yat Chuen, Kowloon Tong
Kowloon, Hong Kong
Tel: (852) 2788-5678
Fax: (852) 2788-5042
E-mail: hkpcenq@hkpc.org
Web site: www.hkpc.org

Industrial Market Research (HK) Ltd.
Room 2903, Admiralty Centre, Tower 1
18 Harcourt Road
Central, Hong Kong
Tel: (852) 2157-1711
Fax: (852) 2865-4177

International Data Corporation Asia Pacific Ltd.
12/F, St. John's Building
33 Garden Road
Central, Hong Kong
Tel: (852) 2530-3831
Fax: (852) 2537-7347
Web site: www.idc.com

Marketing & Management Solutions
16/F, New Hennessy Tower
263 Hennessy Road
Wanchai, Hong Kong
Tel: (852) 2511-2021
Fax: (852) 2598-7378
E-mail: mandms@netvigator.com

Nomura Research Institute (HK) Ltd.
20/F, Citibank Tower
3 Garden Road
Central, Hong Kong
Tel: (852) 2536-1800
Fax: (852) 2536-1888

Ogilvy & Mather (Asia) Pte. Ltd.
23/F, The Center
99 Queen's Road Central
Hong Kong
Tel: (852) 2568-0161
Fax: (852) 2885-3215
Web site: ogilvy@com

Pacific Rim Group Ltd.
Suite 1901, Ruttonjee House
11 Duddell Street
Central, Hong Kong
Tel: (852) 2524-6078
Fax: (852) 2810-6265
E-mail: HongKong@PacificRimGroup.com
Web site: www.pacificrimgroup.com

Research International Asia Ltd.
Unit 3503, 35/F, Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
Tel: (852) 2591-2591
Fax: (852) 2591-2599
Web site: www.research-int.com

Ringe Marketing Services Ltd.
1306 Hermes Commercial Centre
4 Hillwood Road, Tsimshatsui
Kowloon, Hong Kong
Tel: (852) 2366-3089
Fax: (852) 2722-6300
E-mail: ringe@netvigator.com

F. Licensed U.S. Commercial Banks in Hong Kong

American Express Bank Ltd.
36th Floor, One Pacific Place
88 Queensway, Hong Kong
Tel: (852) 2844-0688
Fax: (852) 2845-3637
Web site: www.americanexpress.com/hk/

Bank of America NT & SA
1st Floor, Bank of America Tower
12 Harcourt Road
Central, Hong Kong
Tel: (852) 2847-5333
Fax: (852) 2847-5410

Bank of California, The
15th Floor, Asia Pacific Finance Tower
Citibank Plaza, 3 Garden Road
Central, Hong Kong
Tel: (852) 2826-0600
Fax: (852) 2877-2666

Bank of New York (HK Branch)
6th Floor, New Henry House
10 Ice House Street
Central, Hong Kong
Tel: (852) 2840-9888
Fax: (852) 2810-5279

Bank One
13th Floor, Jardine House
1 Connaught Place
Central, Hong Kong
Tel: (852) 2844-9222
Fax: (852) 2844-9318
Web site: www.bankone.com

Citibank NA
40/F, Citibank Tower
Citibank Plaza, 3 Garden Road
Central, Hong Kong
Tel: (852) 2868-8888
Fax: (852) 2306-8111
Web site: www.citibank.com.hk

Fleet National Bank
33/F, Jardine House
1 Connaught Place
Central, Hong Kong
Tel: (852) 2526-4361
Fax: (852) 2845-9222

J P Morgan & Chase Co.
35/F, Tower I, Exchange Square
8 Connaught Place
Central, Hong Kong
Tel: (852) 2841-4321
Fax: (852) 2841-4396

NBD Bank, NA
Room 804, Tower 1, Lippo Center
89 Queensway, Hong Kong
Tel: (852) 2523-1816
Fax: (852) 2810-6582

Wells Fargo Bank NA
27/F, Edinburgh Tower
Landmark, 15 Queen's Road Central
Central, Hong Kong
Tel: (852) 2315-9500
Fax: (852) 2721-0033
Web site: www.wellsfargo.com

Note: This list does not include U.S. restricted license banks, deposit taking companies, and representative offices.

G. TPCC Trade Information Center in Washington

Trade Information Center (TIC)
International Trade Administration
U.S. Department of Commerce
Tel: 1-800-USA-TRADE (1-800-872-2723)
Fax: (202) 482-4473
http://www.export.gov/tic
E-mail: TIC@tradeinfo.doc.gov

TIC specialists provide basic export counseling and information on export services and programs offered by 20 federal agencies of the Trade Promotion Coordinating Committee (TPCC). The annual report of the TPCC, "The National Export Strategy", designates "the Trade Information Center, situated in the U.S. Department of Commerce, as the single TPCC-wide information office that will coordinate specialized non-agricultural export information offices."

H. U.S. Department of Agriculture

Trade Assistance and Planning Officer (TAPO)
Mr. Leslie Burkett
USDA/FAS/TAPO
Room 4939, South Building
1400 Independence Ave SW
Washington, D.C. 20250
Tel: (202) 720-6343
Fax: (202) 690-4374
Home Page: http://www.fas.usda.gov

CHAPTER 12 MARKET RESEARCH

A. Industry Sector Analyses

Commercial Service Hong Kong prepares a number of Industry Sector Analyses (ISA) every year. These reports are on subsectors of our Best Prospects or other market segments, which offer good opportunities for US exports. These reports are available on the National Trade Data Bank (NTDB) and the following web sites: www.export.gov, www.usatrade.gov, and www.stat-usa.gov.

In FY 2002 we have submitted (or will be submitting) the following reports:

Industry Code	ISA Topics FY 2001
DRG	Pharmaceutical
POL	Waste Reduction & Recycling Equipment
SPT	Sports Equipment
CPT	Video Conferencing Equipment
ACE	Construction and Engineering Services
TRA	Hong Kong Outbound Travel Industry
INV	Hong Kong Venture Capital Industry
BLD	Waterproofing Materials
TEL	Telecommunications Equipment
HTL	Hotel/Restaurant Equipment
CSV	E-Learning
APP	Clothing and Clothing Accessories

For FY 2003, we plan to complete ISAs on the following topics:

Industry Code	Proposed ISA Topics FY 2003	Due Date
PMR	The Mold Making Industry in Hong Kong	November 29, 2002
BLD	Solar Panel	December 31, 2002
CSF	Information Security Solutions	December 31, 2002
TXM	Laundry Equipment	January 30, 2003
WRE	Water Treatment Equipment	February 28, 2003
INS	Hong Kong's Insurance Industry	March 31, 2003
ACR/BLD	Indoor Air Quality Products	March 31, 2003
CSF	Storage Area Network (SAN)	April 15, 2003
JLR	Jewelry	April 30, 3003
DRG	Diagnostic Test (Medical)	May 30, 2003
FLM	Hong Kong's Film Industry	July 30, 2003
LAB	Laboratory & Scientific Equipment	September 1, 2003

B. Reports Prepared by FAS

1. Market Overviews

The Agricultural Trade Office (ATO) Hong Kong prepares a broad range of market overviews which are available to the public by contacting the Foreign Agricultural Service, through the mail at: PSC 464, Box 17, FPO AP 96521-0006; fax (852) 2845-0943, or by E-mail at: ATOHongKong@fas.usda.gov. Market overviews are updated as often as possible and new overviews are added according to market trends. The current list of overviews is as follows:

Beer (Jan 98)
Bourbon (Apr 98)
Cakes, Cookies and Crackers (Sep 98)
Canned Food· (Sep 98)
Cheese (Mar 98)
Chocolate· & Sugar Confectionery (Mar 98)
Cooking Oils and Fats (Apr 98)
Dairy Products (Mar 98)
Dried Fruits and Tree Nuts (Apr 98)
Fast Food (Apr 98)
Food Retailing (Apr· 98)
Fresh Fruit & Vegetables (Apr 98)
Frozen Fruit & Vegetables (Apr 98)
Frozen Desserts (Jan 98)
Fruit Juice (Mar· 98)
Herbs, Spices and Ginseng (Jun 98)
Hong Kong's Food Service (Dec· 98)
Meat (Jun 98)
Microwaveable Foods (Jan 98)
Poultry & Eggs (Apr 98)
Pet Foods (Jan 98)
Seafood (Apr 98)
Snack Foods (Nov 98)
Sauces, Relishes and Condiments (Jun 98)
Soft Drinks (May 98)
Wine (Jan 98)
Hong Kong Increases Its Duties on Wine (02)

2. Hong Kong Market Reports

Annual Report of Poultry
Annual Report of Cotton
Annual Report of Livestock
Annual Report of· Tobacco
Semi-Annual Report of Poultry
Semi-Annual Report of Livestock
Exporter Guide
Retail Food Sector Report
Food & Agricultural Import Regulations & Standards

3. U.S. Market Development Cooperator Organizations Represented in Hong Kong

USA Poultry & Egg Export Council
Ms. Sarah Li
Director of Market Development
Room 2010, Hang Lung Center
2-20 Paterson Street
Causeway Bay
Hong Kong
Tel: (852) 2890-2908
Fax: (852) 2895-5546
E-mail: usapeec-hk@psinet.com.hk

Sunkist Growers, Inc.
Ms. Maria Kwok
Sunkist (Far East) Promotion Limited
Room 1303, Bank of America
12 Harcourt Road
Central
Hong Kong
Tel: (852) 2524-9219
Fax: (852) 2845-3454
E-mail: sunfe@netvigator.com

U.S. Potato Board (Fresh)
California Tree Fruit Agreement
Mr. Michael Wong
Michael Wong & Co.
7C Queen's Centre
58-64 Queen's Road East
Wanchai
Hong Kong
Tel: (852) 2891-3889
Fax: (852) 2891-3702
E-mail: agrichin@netvigator.com
E-mail: michaelcfwong@hotmail.com

U.S. Meat Export Federation
Mr. Joel Haggard
8th Floor, Zoroastrain Building
101 Leighton Road
Causeway Bay
Hong Kong
Tel: (852) 2890-7408
Fax: (852) 2576-7345
Internet Homepage: http://usmef.org
E-mail: hongkong@usmef.org

American Forest & Paper Association, Inc.
Mr. John Chan
Director
Room 528, New World Office Building
AIA Tower, 20 Salisbury Road
Kowloon
Hong Kong
Tel: (852) 2724-0228
Fax: (852) 2366-8931
E-mail: afpa@netvigator.com

Cotton Council International
Mr. Jeff Coey
Director, China & South East Asia
20/F, Zoroastrian Building
101 Leighton Road
Causeway Bay
Hong Kong
Tel: (852) 2890-2755
Fax: (852) 2882-5463
E-mail: ccihkg@attglobal.net

Almond Board of California
California Cherry Advisory Board
California Pears Growers Advisory Board
U.S. Dairy Export Council
USA Dry Pea & Lentil Council
U.S. Potato Board (Frozen/Dehydrated)
Washington State Potato Commission (Dehydrated Potato)
Mr. Daniel Chan
PR Consultants Ltd.
Unit D, 14/F., Vulcan House
21-23 Leighton Road
Hong Kong
Tel: (852) 2833-5977
Fax: (852) 2893-7538
E-mail: hkg@prcon.com

National Renderers Association, Inc.
Dr. Yu Yu
Asia Regional Director
Unit A, 22/F, Circle Tower
28 Tang Lung Street
Causeway Bay
Hong Kong
Tel: (852) 2890-2529
Fax: (852) 2576-8045
E-mail: nrahkg@nrahongkong.com

Washington State Department of Agriculture
Washington Apple Commission
Northwest Cherry Growers
Mr. Philander Fan
Marketing Plus
Room 2102, Kingsfield Center
18-20 Shell Street
North Point
Hong Kong
Tel: (852) 2815-6773, 2802-6527
Fax: (852) 2544-7858
E-mail: philfan@navigator.com

U.S. Wheat Associates
Mr. Matt Weimar
Far East Director
12/F, Zoroastrian Building
101 Leighton Road
Causeway Bay
Hong Kong
Tel: (852) 2890-2815
Fax: (852) 2576-2676
E-mail: mweimar@uswheat.org

California Strawberry Commission (Hong Kong)
California Kiwi Fruit Commission (Hong Kong)
California Pistachio Commission (China)
California Table Grape Commission (China & Hong Kong)
Florida Department of Citrus (China)
Pear Bureau Northwest (Hong Kong)
Raisin Administrative Committee (China & Hong Kong)
Mr. Louis Ng
Louis Ng & Associates Ltd.
Suite B, 3/F, Luen Wai Commercial Building
93-97 Des Voeux Road West
Hong Kong
Tel: (852) 2858-2230
Fax: (852) 2559-5896
E-mail: lnahk@netvigator.com

Alaska Seafood Marketing Institute
California Prune Board China Office
Trade Liaison China & Hong Kong
Mr. Robin Wang
7B Yi Cui Court, Crest Garden
97 Song Lin Road, Pudong
Shanghai 200120
P.R. China
Tel: (8621) 6875-9971
Fax: (8621) 6875-9961
E-mail: shengming@sh163.net

CHAPTER 13 TRADE EVENT SCHEDULE

A. FY 2002 and FY 2003 Events with Commercial Service involvement:

FY 2002 Events:

Event Name: Medical Trade Mission to China
Date of Event: September 2002
Industry Theme: MED
Type of Event: Trade Mission
Event Location: Hong Kong

Event Name: New Products USA 2002
Date of Event: September 12-13, 2002
Industry Theme: GIE
Type of Event: Multi-State Catalog Exhibition
Event Location: Hong Kong

FY 2003 Events:

Event Name: ElectronicAsia 2002
Date of Event: October 11-14, 2002
Industry Theme: ELC
Type of Event: Trade Fair Certification, Catalog Show
Event Location: Hong Kong

Event Name: Hong Kong International Hardware & Home Improvement Fair
Date of Event: October 24-26, 2002
Industry Theme: BLD, FUR, GIE, HCG
Type of Event: Trade Fair Certification, Catalog Show
Event Location: Hong Kong

Event Name: Cosmoprof Asia 2002
Date of Event: November 13-15, 2002
Industry Theme: COS
Type of Event: Trade Fair Certification
Event Location: Hong Kong

Event Name: IT Trade Mission to Hong Kong, Taiwan and Korea
Date of Event: December 2-13, 2002
Industry Theme: CPT, CSF, CSV
Type of Event: Trade Mission
Event Location: Hong Kong

Event Name: ITU Telecom Asia 2002
Date of Event: December 2-7, 2002
Industry Theme: TEL, TES
Type of Event: Trade Fair Certification, Catalog Show
Event Location: Hong Kong

Event Name: US Environmental Technology Trade Mission
Date of Event: January, 2003
Industry Theme: POL, WRE
Type of Event: Trade Mission
Event Location: Hong Kong

Event Name: World Boutique
Date of Event: January 14-17, 2002
Industry Theme: APP, FRA, GFT, JLR
Type of Event: Trade Fair
Event Location: Hong Kong

Event Name: Expo 2003
Date of Event: January 27-29, 2003
Industry Theme: ACR
Type of Event: Trade Fair
Event Location: Hong Kong

Event Name: Education & Careers Expo
Date of Event: February, 2003
Industry Theme: EDS
Type of Event: Business Information Office
Event Location: Hong Kong

Event Name: Hong Kong Information Infrastructure Show 2003
Date of Event: March, 2003
Industry Theme: CPT, SCF, CSV
Type of Event: Trade Fair Certification
Event Location: Hong Kong

Event Name: Safety & Security Equipment Matchmaker
Date of Event: March, 2003
Industry Theme: SEC
Type of Event: Matchmaker
Event Location: Hong Kong

Event Name: Hong Kong International Jewellery Show
Date of Event: March 4-7, 2003
Industry Theme: JLR
Type of Event: Trade Fair Certification
Event Location: Hong Kong

Event Name: Natural Products Trade Mission to China and Hong Kong
Date of Event: May, 2003
Industry Theme: DRG
Type of Event: Trade Mission
Event Location: Hong Kong

Event Name: HOFEX 2003
Date of Event: May 6-9, 2003
Industry Theme: FOD, FPP, HTL
Type of Event: Product Literature Center
Event Location: Hong Kong

Event Name: Hong Kong International Film and TV Market (Filmart)
Date of Event: June 26-28, 2003
Industry Theme: FLM
Type of Event: Trade Fair Certification, Catalog Show
Event Location: Hong Kong

Event Name: The 19th International Building Exposition (IBEX)
Date of Event: June, 2003
Industry Theme: ACE, BLD, CON
Type of Event: Trade Fair Certification, Catalog Show
Event Location: Hong Kong

Event Name: Processed Food, Food Processing & Packaging Equipment
Matchmaker
Date of Event: August, 2003
Industry Theme: FOD, FPP, HTL
Type of Event: Matchmaker
Event Location: Hong Kong

Event Name: Autoparts 2003
Date of Event: August 28-31, 2003
Industry Theme: APS
Type of Event: Catalog Show
Event Location: Hong Kong

(Note: Changes may occur after this listing goes into print. Readers are advised to check with our office if they wish to participate in or attend a particular event.)

B. Trade Events Schedule (July, 2002 – September, 2003)

The following major trade shows are also scheduled for Hong Kong, although the U.S. Commercial Service Hong Kong is not directly involved with them.

August 8-11, 2002
The 2nd International Graphic Arts Technology Exhibition for Asia – Graphic Arts 2002
Hong Kong Convention & Exhibition Centre
Organized by: Business & Industrial Trade Fairs Ltd.

August 8-11, 2002
The 3rd Asian Sign Technology and Materials Exhibition – SignEx 2002
Hong Kong Convention & Exhibition Centre
Organized by: Business & Industrial Trade Fairs Ltd.

August 8-11, 2002
The Business Expo for Asia – Business Expo 2002
Hong Kong Convention & Exhibition Centre
Organized by: Business & Industrial Trade Fairs Ltd.

August 8-11, 2002
The 16th International Printing & Packaging Machinery & Materials Exhibition for Asia – Print + Pack Expo 2002
Hong Kong Convention & Exhibition Centre
Organized by: Business & Industrial Trade Fairs Ltd.

August 15-19, 2002
Food Expo 2002
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

August 24-26, 2002
28th Wedding Fashion Expo 2002
Hong Kong Convention & Exhibition Centre
Organized by: Hong Kong (Asia) Exhibition Co. Ltd.

August 28-31, 2002
Asian Industrial Expo 2002
Hong Kong Convention & Exhibition Centre
Organized by: Business & Industrial Trade Fairs Ltd.

August 28-31, 2002
The 2nd International Auto Parts, accessories, Maintenance and Inspection Equipment Exhibition – AutoParts & Accessories 2002
Hong Kong Convention & Exhibition Centre
Organized by: Business & Industrial Trade Fairs Ltd.

August 28-31, 2002
The 2nd International Mould & Die Making and Manufacturing Technology Exhibition for Asia – Mould & Die Asia 2002
Hong Kong Convention & Exhibition Centre
Organized by: Business & Industrial Trade Fairs Ltd.

September 10-14, 2002
Hong Kong Watch & Clock Fair 2002
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

September 17-20, 2002
The 21st International Air Cargo Forum and Exposition (ACF2002)
Hong Kong Convention & Exhibition Centre
Organized by: The International Air Cargo Association (TIACA)

September 18-21, 2002
Asian IT Expo 2002 – The 13th Asian Information Technology Exhibition
Hong Kong Convention & Exhibition Centre
Organized by: Adsale Exhibition Services Ltd.

September 19-20, 2002
Hong Kong International Computer Conference 2002
Hong Kong Convention & Exhibition Centre
Organized by: Hong Kong Computer Society

September 25-29, 2002
September Hong Kong Jewellery & Watch Fair 2002
Hong Kong Convention & Exhibition Centre
Organized by: CMP Asia Ltd.

October 4-6, 2002
Asia Pacific Leather Fair 2002 – Fashion & Finished Products – October Show
Hong Kong Convention & Exhibition Centre
Organized by: Asia Pacific Leather Fair Ltd.

October 11-14, 2002
Hong Kong Electronics Fair 2002
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

October 11-14, 2002
Hong Kong International Lighting Fair 2002
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

October 11-14, 2002
electronicAsia 2002
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

October 18-21, 2002
11th Hong Kong International Toys & Gifts Show 2002
Hong Kong Convention & Exhibition Centre
Organized by: Kenfair International Limited

October 18-21, 2002
10th Asian Gifts, Premium & Household Products Show 2002
Hong Kong Convention & Exhibition Centre
Organized by: Kenfair International Limited

October 24-26, 2002
Hong Kong International Hardware & Home Improvement Fair 2002
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

November 1-3, 2002
Hong Kong Wedding & Banquet Expo 2002
Hong Kong Convention & Exhibition Centre
Organized by: Audace International Fairs Ltd.

November 6-8, 2002
Hong Kong Optical Fair 2002
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

November 7-10, 2002
The 10th Hong Kong International Jewelry Manufacturers Exhibition 2002
Hong Kong Convention & Exhibition Centre
Organized by: Hong Kong Jewelry Manufacturers' Association

November 13-15, 2002
The Natural Health Fair
Hong Kong Convention & Exhibition Centre
Organized by: Cosmoprof Asia Ltd.

November 13-15, 2002
Cosmoprof Asia 2002
Hong Kong Convention & Exhibition Centre
Organized by: Cosmoprof Asia Ltd.

December 2-7, 2002
ITU Telecom Asia 2002
Hong Kong Convention & Exhibition Centre
Organized by: International Telecommunication Union (ITU)

December 14-16, 2002
Beauty & Health Expo 2002
Hong Kong Convention & Exhibition Centre
Organized by: Hong Kong (Asia) Exhibition Co. Ltd.

December 14-16, 2002
29th Christmas Wedding Expo 2002
Hong Kong Convention & Exhibition Centre
Organized by: Hong Kong (Asia) Exhibition Co. Ltd.

December 16-19, 2002
Software Exhibition 2002
Hong Kong Convention & Exhibition Centre
Organized by: Hong Kong Productivity Council

January 7-10, 2003
Hong Kong Toys & Games Fair 2003
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

January 7-10, 2003
Hong Kong International Stationery Fair 2003
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

January 14-17, 2003
Hong Kong Fashion Week for Fall/Winter 2003
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

January 14-17, 2003
World Boutique, Hong Kong
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

February 20-23, 2003
Education & Careers Expo 2003
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC and Labour Department

February 20-23, 2003
Hong Kong Information Infrastructure Expo 2003
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

February 28 – March 3, 2003
2003 Hong Kong International Fur and Fashion Fair
Hong Kong Convention & Exhibition Centre
Organized by: Hong Kong Fur Federation

March 4-7, 2003
Hong Kong International Jewellery Show 2003
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

March 14-17, 2003
11th Hong Kong International Plastics Exhibition 2003
Hong Kong Convention & Exhibition Centre
Organized by: Paper Communication Exhibition Services

March 14-17, 2003
15th Hong Kong International Machine Tool – Linkage Industry Exhibition 2003
Hong Kong Convention & Exhibition Centre
Organized by: Paper Communication Exhibition Services

March 14-17, 2003
10th Hong Kong International Packaging Exhibition 2003
Hong Kong Convention & Exhibition Centre
Organized by: Paper Communication Exhibition Services

March 18-20, 2003
Safety + Health Expo 2003
Hong Kong Convention & Exhibition Centre
Organized by: Occupational Safety and Health Council

March, 2003
Interstoff Asia Spring 2003 International Fabric Show
Hong Kong Convention & Exhibition Centre
Organized by: Messe Frankfurt (H.K.) Ltd.

April 14-17, 2003
Hong Kong Houseware Fair 2003
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

April 22-25, 2003
Hong Kong Gifts & Premium Fair 2003
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

April, 2003
Asia Pacific Leather Fair 2003
Hong Kong Convention & Exhibition Centre
Organized by: Asia Pacific Leather Fair Ltd.

April, 2003
31st Easter Wedding Expo 2003
Hong Kong Convention & Exhibition Centre
Organized by: Hong Kong (Asia) Exhibition Co. Ltd.

May 6-9, 2003
HOFEX 2003 – The 10th Asian International Exhibition of Hospitality Equipment, Supplies & Technology, Food & Drink
Hong Kong Convention & Exhibition Centre
Organized by: Hong Kong Exhibition Services Ltd.

May, 2003
The 19th International Computer Expo 2003
Hong Kong Convention & Exhibition Centre
Organized by: CMP Asia Ltd.

June, 2003
Hong Kong International Film & TV Market (FILMART) 2003
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

June, 2003
IBEX – The 19th International Building Exposition 2003
Hong Kong Convention & Exhibition Centre
Organized by: Reed Exhibitions Limited

June, 2003
ITE Hong Kong 2003 – The 17th International Travel Expo Hong Kong
Hong Kong Convention & Exhibition Centre
Organized by: Adsale Exhibition Services Ltd.

June, 2003
3rd Beauty & Fitness Expo 2003
Hong Kong Convention & exhibition Centre
Organized by: Hong Kong (Asia) Exhibition Co. Ltd.

June, 2003
June Hong Kong Jewellery & Watch Fair 2003
Hong Kong Convention & Exhibition Centre
Organized by: CMP Asia Ltd.

June, 2003
Asia's Fashion Jewellery & Accessories Fair 2003
Hong Kong Convention & Exhibition Centre
Organized by: CMP Asia Ltd.

July 23-28, 2003
Hong Kong Book Fair 2003
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

July, 2003
Hong Kong Fashion Week for Spring/Summer 2004
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

August, 2003
The 3rd International Graphic Arts Technology Exhibition for Asia – Graphic Arts 2003
Hong Kong Convention & Exhibition Centre
Organized by: Business & Industrial Trade Fairs Ltd.

August, 2003
32nd Wedding Fashion Expo 2003
Hong Kong Convention & Exhibition Centre
Organized by: Hong Kong (Asia) Exhibition Co. Ltd.

August, 2003
Food Expo 2003
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

August, 2003
The 3rd International Auto Parts, Accessories, Maintenance and Inspection Equipment Exhibition – AutoParts & Accessories 2003
Hong Kong Convention & Exhibition Centre
Organized by: Business & Industrial Trade Fairs Ltd.

August, 2003
The 3rd International Mould & Die Making and Manufacturing Technology Exhibition for Asia – Mould & Die Asia 2003
Hong Kong Convention & Exhibition Centre
Organized by: Business & Industrial Trade Fairs Ltd.

August, 2003
Asian Industrial Expo 2003
Hong Kong Convention & Exhibition Centre
Organized by: Business & Industrial Trade Fairs Ltd.

August, 2003
The 17th International Printing & Packaging Machinery & Materials Exhibition for Asia -Print + Pack Expo 2003
Hong Kong Convention & Exhibition Centre
Organized by: Business & Industrial Trade Fairs Ltd.

August, 2003
The 4th Asian Sign Technology and Materials Exhibition – SignEx 2003
Hong Kong Convention & Exhibition Centre
Organized by: Business & Industrial Trade Fairs Ltd.

September, 2003
Asian IT Expo 2003 – The 14th Information Technology Exhibition
Hong Kong Convention & Exhibition Centre
Organized by: Adsale Exhibition Services Ltd.

September, 2003
Hong Kong Watch & Clock Fair 2003
Hong Kong Convention & Exhibition Centre
Organized by: HKTDC

September, 2003
September Hong Kong Jewellery & Watch Fair 2003
Hong Kong Convention & Exhibition Centre
Organized by: CMP Asia Ltd.

(NOTE: Changes may occur after this listing goes into print. Readers are advised to check with the organizers directly if they wish to participate in or attend a particular event. More up-to-date information on trade events can also be retrieved from the Hong Kong Trade Development Council homepage at http://www.tdctrade.com)

Contact Address for Organizers:

Adsale Exhibition Services Ltd.
4/F, Stanhope House
734 King's Road, North Point
Hong Kong
Tel: (852) 2811-8897
Fax: (852) 2516-5024
E-mail: exhibition@adsale.com.hk
Web site: www.adsaleexh.com

Asia Pacific Leather Fair Ltd.
17/F, China Resources Building
26 Harbour Road, Wanchai
Hong Kong
Tel: (852) 2827-6211
Fax: (852) 2827-7831
E-mail: info@aplf.com
Web site: www.aplf.com

Audace International Fair Ltd.
30/F, 8 Hart Avenue
Tsimshatsui, Kowloon
Hong Kong
Tel: (852) 2367-8385
Fax: (852) 2367-8488
E-mail: info@expo.com.hk
Web site: www.expo.com.hk

Business & Industrial Trade Fairs Ltd.
Unit 1223, 12/F, Hong Kong International Trade & Exhibition Centre
1 Trademart Drive, Kowloon Bay
Hong Kong
Tel: (852) 2865-2633
Fax: (852) 2866-1770
E-mail: enquiry@bitf.com.hk
Web site: www.bitf.com.hk

CMP Asia Ltd.
17/F, China Resurouces Building
26 Harbour Road, Wanchai
Hong Kong
Tel: (852) 2827-6211
Fax: (852) 2827-7831
E-mail: info@cmpasia.com
Web site: www.cmpasia.com

Cosmoprof Asia Ltd.
17/F, China Resources Building
26 Harbour Road, Wanchai
Hong Kong
Tel: (862) 2827-6211
Fax: (852) 2827-7831
E-mail: cosmasia@cmpasia.com
Web site: www.cosmoprof-asia.com

Hong Kong (Asia) Exhibition Co. Ltd.
2705 Sino Plaza
255-257 Gloucester Road, Causeway Bay
Hong Kong
Tel: (852) 2591-9823
Fax: (852) 2573-3311
E-mail: hkexhi@hka.com.hk
Web site: www.hka.com.hk

Hong Kong Computer Society
Room 1915, China Merchants Tower
Shun Tak Centre
168 Connaught Road Central, Central
Hong Kong
Tel: (852) 2834-2228
Fax: (852) 2834-3003
E-mail: hkcs@hkcs.org.hk
Web site: www.hkcs.org.hk

Hong Kong Exhibition Services Ltd.
Unit 2010, 20/F, China Resources Building
26 Harbour Road, Wanchai
Hong Kong
Tel: (852) 2804-1500
Fax: (852) 2528-3103
E-mail: exhibit@hkesmontnet.com.hk
Web site: www.hkesmontnet.com.hk

Hong Kong Fur Federation
Room 603, 6/F, Chevalier House
45-51 Chatham Road South
Tsimshatsui, Kowloon
Hong Kong
Tel: (852) 2367-4646
Fax: (852) 2739-0799
E-mail: furs@hkfurfed.com.hk
Web site: www.hkfurfed.com.hk

Hong Kong Jewelry Manufacturers' Association
Unit G, 2/F, Kaiser Estate Phase II
51 Man Yue Street, Hung Hom
Kowloon, Hong Kong
Tel: (852) 2766-3002
Fax: (852) 2362-3647
E-mail: hkjma@jewelry.org.hk
Web site: www.jewelry.org.hk

Hong Kong Productivity Council
HKPC Building, 78 Tat Chee Avenue
Kowloon Tong, Kowloon
Hong Kong
Tel: (852) 2788-5678
Fax: (852) 2788-5900
E-mail: kevin@hkpc.org
Web site: www.hkpc.org

Hong Kong Trade Development Council (HKTDC)
38/F, Office Tower, Convention Plaza
1 Harbour Road, Wanchai
Hong Kong
Tel: (852) 2584-4333
Fax: (852) 2824-0249
E-mail: hktdc@tdc.org.hk
Web site: www.tdctrade.com

International Telecommunication Union (ITU)
Place des Nations, CH-1211
Geneva 20, Switzerland
Tel: 41-22-730-6161
Fax: 41-22-730-6444
E-mail: telecominf@itu.int
Web site: www.itu.int/TELECOM

Kenfair International Limited
Suite 2803, 28/F, Tower 6
The Gateway, Harbour City
9 Canton Road, Tsimshatsui
Kowloon, Hong Kong
Tel: (852) 2311-8216
Fax: (852) 2311-6629
E-mail: info@kenfair.com
Web site: www.kenfair.com

Messe Frankfurt (HK) Ltd.
1608 China Resources Building
26 Harbour Road, Wanchai
Hong Kong
Tel: (852) 2802-7728
Fax: (852) 2511-3466
E-mail: info@hongkong.messefrankfurt.com
Web site: www.messefrankfurt.com

Occupational Safety and Health Council
19/F, China United Centre
28 Marble Road, North Point
Hong Kong
Tel: (852) 2739-9377
Fax: (852) 2739-9779
E-mail: oshc@oshc.org.hk
Web site: www.oshc.org.hk

Paper Communication Exhibition Services
Room 15, 5/F, Wah Shing Centre
11 Shing Yip Street, Kwun Tong
Kowloon, Hong Kong
Tel: (852) 2763-9011
Fax: (852) 2341-0379
E-mail: shirleylok@paper-com.com.hk
Web site: www.paper-com.com.hk

Reed Exhibition Limited
11/F, East Wing, Hennessy Centre
500 Hennessy Road, Causeway Bay
Hong Kong
Tel: (852) 2824-0330
Fax: (852) 2824-0246
E-mail: ask@reedexpo.com.hk
Web site: www.reedexpo.com

The International Air Cargo Association (TIACA)
5600 N.W. 36th Street, Suite 620
Miami, FL 33159
USA
Tel: 786-265-7011
Fax: 786-265-7012
E-mail: secgen@tiaca.org
Web site: http://www.tiaca.org/

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