Investors hesitated mostly when starting a business in China, including lots of companies that are setup Hong Kong . In general, they don’t have enough and all rounded information about the policies and regulations about businesses in China. In the past few years, Hong Kong Government is setting up the Hong Kong Economic and Trade Office in Guangdong (GDETO) in China. On the whole, acting as a bridge setting up businesses, connecting China and Hong Kong helping entrepreneurs to establish and expand their businesses.
Hong Kong Government established the first GDETO in July 2002. Since then, there are total of five offices set up to foster closer links between Hong Kong and China. GDETO’s cover Fujian, Guangdong, Guangxi, Hainan and Yunnan. With a view to strengthening and deepening the liaison and co-operation with Shenzhen, Fujian and Guangxi. The HK Government subsequently set up the Shenzhen Liaison Unit, Fujian Liaison Unit and Guangxi Liaison Unit in order to enhance better and quicker services to cross boarder business entrepreneurs.
The GDETO is responsible for handling economic and trade matters between Hong Kong and the five provinces/region. In fact, GDETO serves to promote Hong Kong’s economic and trade interests. While GDETO seeks to attract direct investments into Hong Kong. The Office performs the following functions –
1/ Economic and Trade Liaison
GDETO to further develop and promote the economic and trade relations between Hong Kong and the five provinces/region. By enhancing communication and co-operation with the provincial government and the relevant local authorities
2/ Enhancing Understanding between the Five provinces/region and the Hong Kong Governments
GDETO acts as a platform to enhancing information exchange on economics and trade development.
3/ Support to Hong Kong Enterprises
GDETO to strengthen communication with the Hong Kong businessmen operating in the five provinces/region. And provide better support by obtaining and disseminating information on provinces’ policy and legislation. The information is relating to commerce and trade and their latest economic developments. The commerce and trade-related issues of common concern among Hong Kong businessmen. GDETO will refer them to the relevant authorities and follow up with discussions. However, it is not in a position to arbitrate on individual commercial and legal disputes;
4/ Investment Promotion
GDETO to provide information and services aimed at promoting investment from the five provinces/region to Hong Kong;
5/ Promoting Hong Kong
GDETO to project a positive image of Hong Kong as a good business partner.
6/ Assisting Hong Kong Residents in distress
GDETO to provide practical assistance to Hong Kong residents in distress in the five provinces/region;
7/ Passport Replacement Service
GDETO to provide SAR passport replacement service for eligible applicants with a valid HKSAR permanent identity card.
Hong Kong is the major source of foreign capital in Guangdong Province. In 2018, Guangdong Province newly established 31,018 Hong Kong-funded enterprises, accounting for 86.7% of the province, and actually absorbed $99.52 billion of Hong Kong capital.
Number of Guangdong enterprise invested in Hong Kong: 6827 Enterprises, valued at USD95.151 Billion
Number of Guangdong enterprise listed in Hong Kong: 238 Enterprises, valued USD772.7 Billion
Hong Kong is also the major source of foreign capital in Guangxi Province. Up to 2018 year ended, the total number of approved Hong Kong-funded enterprises in Guangxi District reached 6,884, accounting for 60.7% of the total number of foreign-funded enterprises in the region. And then the direct investment of Hong Kong companies to nearly US$27.205 billion, accounting for 58.7% of the total area.
Hong Kong is the major source of foreign capital in Hainan Province as well. Up to 2018 year ended, the total number of approved Hong Kong-funded enterprises in Hainan District reached 6,438, accounting for 59.9% of the total number of foreign-funded enterprises in the region. The direct investment of Hong Kong companies via contract to nearly US$39 billion, accounting for 59.8% of the total area. In fact, the direct investment is US$6.69 billion, accounting for 65.6% of the total area.
Hong Kong is either the major source of foreign capital in Yunnan Province. Up to 2018 year ended, the total number of approved Hong Kong-funded enterprises in Yunnan District reached 1,877, accounting for 38.2% of the total number of foreign-funded enterprises in the region. And the direct investment of Hong Kong companies via contract to nearly US$22.53 billion, accounting for 63.8% of the total area. In fact, the direct investment is US$12.4 billion, accounting for 61% of the total area.
Hong Kong is also the major source of foreign capital in Fujian Province. Up to 2018 year ended, Hong Kong investors set up more than 27,400 enterprises. The direct investment is CNY62.07 billion. The total amount of export from Fujian to Hong Kong is CNY50.29 billion.
Since the establishment of GDETO, it has been committed to providing a wide variety of services to assist investors including:
Organize exhibitions and other promotional activities to introduce the latest situation of Hong Kong to mainland residents. Aims to deepen the overall knowledge and understanding of Hong Kong. GDETO actively encourages mainland enterprises to use Hong Kong as a springboard to enter the international market. As Hong Kong’s positive international image is well popular.
GDETO publishes the “GDETO Newsletter” every Friday. The Newsletter contains the latest information on commerce and trade-related policies / regulations and the economic developments in the provinces/region. As well as on major economic and trade activities held in the five provinces/region.
GDETO produces and regularly updates various publications / leaflets. The publication helps Hong Kong businessmen obtain the latest economic and trade-related information. In addition, the publications together with reference materials are sent to major chambers of commerce, semi-government organizations in Hong Kong and related departments in Mainland.
The GDETO organises “Gatherings with Heads of Hong Kong’s Trade and Industry Associations”. To have a view to maintaining direct communication with chairmen/presidents of major trade and industry associations in Hong Kong. Expects to get a better understanding of the problems encountered by their members when investing in the region. Also gauging the associations’ views on the investment and business environment of the five provinces/region. The gatherings also aim to seek trade associations’ comments and suggestions. So as to facilitate our provision of services to Hong Kong businessmen in a more effective and efficient manner.
GDETO has been actively monitoring the implementation of policies and regulations. And then GDETO will take appropriate follow up actions. Including referring issues of common concern to Hong Kong businessmen to the relevant authorities of the five provinces/region.
The study missions aim to update participants on the latest economic / trade developments and investment environment. As well as to help them establish contacts with the local governments and business communities in order to facilitate their investments and explore business opportunities.
In order to enhance Hong Kong investors’ understanding of the economic and trade-related policies / regulations and investment environment. GDETO organises seminars conducive to the business development of Hong Kong enterprises and invites representatives of local authorities or experts from various sectors to elaborate on the policies or issues of concern to Hong Kong businessmen. These seminars help Hong Kong businessmen better understand the latest operation situation of the five provinces/region.
GDETO has set up an Invest Hong Kong Service Centre providing free consultation service relating to investing in Hong Kong for enterprises from the five provinces/region.
The GDETO organises trade study missions to enable potential investors from the five provinces/region to know more about the latest trade environment, exchange information with government officials, professional bodies, members of trade and industry organisations and to enhance their confidence in investing in Hong Kong.
GDETO organises from time to time various types of investment promotion activities. For instance, individual consultation, roundtable meeting, seminar, exchange forum, CEO luncheon/dinner etc. The topics covered include investment environment for various sectors, visa application, financing and listing and so on. These activities aim to provide an exchange platform for Mainland enterprises which intend to invest or have already invested or set up companies in Hong Kong. Let them discuss with experts/professionals of relevant industrial and service sectors. So as to enhance their understanding of Hong Kong’s investment environment.
The GDETO has set up a resource centre with a collection of the latest trade-related information regarding the five provinces/region and Hong Kong.
GDETO has established hyperlinks with the websites of the five provincial governments and their major municipal cities to enable members of the public to know the latest trade and economic situation.
For further information, please contact us.
You may want to read: CHINA SIMPLIFIED ITS INCORPORATION PROCESS SINCE 2016