Hong Kong General Trade Policy

The Hong Kong Special Administrative Region of the People's Republic of China (HKSAR) is firmly committed to an open market policy. This policy applies to all trade, as well as to all investments in the HKSAR.

Hong Kong has become a Special Administrative Region of the People's Republic of China since 1 July 1997. The "One Country, Two Systems" principle provides the HKSAR with a high degree of autonomy in economic, trade, financial and monetary matters. This is guaranteed by the Basic Law, the mini-constitution of the HKSAR, which ensures that the important elements making Hong Kong a regional business and financial centre will extend well beyond 1997, including continuation of capitalist economic and trade systems, free movement of goods and capital, and status as a free port and separate customs territory. Tariff preferences and other similar arrangements obtained by the HKSAR will be enjoyed exclusively by the HKSAR. The Basic Law also provides that the HKSAR may participate in relevant international organizations and international trade agreements under the name "Hong Kong, China".

In 1986, Hong Kong became a separate contracting party to the General Agreement on Tariffs and Trade (GATT). Hong Kong was one of the original members of the World Trade Organization (WTO) when it was established on 1 January 1995. Hong Kong also became a member of the Customs Cooperation Council (subsequently renamed as the World Customs Organization) in 1987 and the Asia Pacific Economic Cooperation (APEC) in 1991. The status of the HKSAR in these and other international organizations remains unchanged except that our participation is now under the name "Hong Kong, China".

Trade Relations with Asia-Pacific

• The trade relationship between Hong Kong and Asia-Pacific is flourishing. Trade between Hong Kong and Asia-Pacific increased 10% from HK$4,245 billion in 2006 to HK$4,652 billion in 2007.
  
  
• Hong Kong is also an important entrepot for trade between the Mainland of China and Asia-Pacific. Re-export of goods of Mainland origin through Hong Kong to Asia-Pacific increased by 9% from HK$1077 billion in 2006 to HK$1,176 billion in 2007.
  
  
• Hong Kong's domestic export of goods to Asia-Pacific totalled about HK$85 billion in 2007. The top three domestic export categories to Asia-Pacific in 2007 were:
  

• Articles of apparel and clothing accessories
  
  
• Electrical machinery, apparatus and appliances, and electrical parts 
  thereof 
  
  
• Plastics in primary forms
  

• Hong Kong's re-export of goods to Asia-Pacific totalled about HK$2,065 billion in 2007. The top three re-export categories to Asia-Pacific in 2007 were:

• Electrical machinery, apparatus and appliances, and electrical parts 
  thereof
  
  
• Telecommunications and sound recording and reproducing apparatus 
  and equipment
  
  
• Office machines and automatic data processing machines
  

• Hong Kong's import of goods from Asia-Pacific totalled about HK$2,503 billion in 2007. The top three import categories from Asia-Pacific in 2007 were:

• Electrical machinery, apparatus and appliances, and electrical parts 
  thereof
  
  
• Telecommunications and sound recording and reproducing apparatus 
  and equipment
  
  
• Office machines and automatic data processing machines
  

1. Asia-Pacific in this fact sheet includes 21 economies, i.e. Australia, Brunei Darussalam, Canada, Chile, the Mainland of China, Chinese Taipei, Hong Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, the Republic of Korea, Thailand, the United States, and Vietnam.

RC Division
Trade and Industry Department
August 2008