what are the opportunities and potentials for hk businesses in the mainland?
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What are the opportunities and potentials for HK businesses in the mainland?. The economic growth in China. Continuous growth in real GDP Also, there is an obvious growth in GDP per capita Increasing in purchasing power Enlarging the potential market in China. - PowerPoint PPT PresentationTRANSCRIPT
What are the opportunities and potentials for HK businesses in
the mainland?
The economic growth in China
• Continuous growth in real GDP
• Also, there is an obvious growth in GDP per capita Increasing in purchasing power
• Enlarging the potential market in China
China’s Average Annual Real GDP Growth Rate
Year GDP growth rate
2004 10.1%
2005 9.9%
2006 9.5%
2007(forecast) About 9.25%
3800 36004600 5000
5600
7198 7600
0
2000
4000
6000
8000
1999 2000 2002 2003 2004 2005 2006
China - GDP percapita ($)
Globalization• becoming a single-world society
• Stages of production finished in different countries
• Customers are no longer concern about the origin of products (low regional preference)
Minimizing the possible risksReinforcing global development
The development of e-commerce
• General use of computer and internet
• People do business through internet (e.g. e-mail, e-conference )
• Easy to manage business and operations oversea
• Cross broad business become possible
The development of e-commerce (continued)
• E-commerce is well-developed in HKPossess the necessary skills and talentsA potential to enlarging the business in
China
Information Technology (Example)
• one of the focus for HK firms
- Telecom market;
- e-commerce;
- and software industries
What are the strengths and weaknesses of HK businesses
vis-a-vis mainland firms and multinationals?
Strengths
• Developed a good image in China
• High quality products and services
• Good infrastructure and business system
• Adequate talents and business experience
• Similar culture and language with China
• Market sensitive
• CEPA—zero tariff
Weaknesses
• Less innovative ideas
• Not enough famous and local brands
• High costs
• Lack high-tech professionals