Hong Kong

Occupied by the UK in 1841, Hong Kong was formally ceded by China the following year; various adjacent lands were added later in the 19th century. Pursuant to an agreement signed by China and the UK on 19 December 1984, Hong Kong became the Hong Kong Special Administrative Region (SAR) of the People's Republic of China on 1 July 1997.

Under the principle of  “one country, two systems”, Hong Kong has a different political system from mainland China. Hong Kong's independent judiciary functions under the common law framework. The basic law of Hong Kong, its constitutional document, which stipulates that Hong Kong shall have a "high degree of autonomy" in all matters except foreign relations and military defence, governs its political system. Although it has a burgeoning multi-party system, a small-circle electorate controls half of its legislature. An 800-person Election Committee selects the Chief Executive of Hong Kong, , the head of government.

Hong Kong's economy is characterised by free trade, low taxation and minimum government intervention. It is the world's 11th largest trading economy, with the mainland of China as its most significant trading partner. Hong Kong is also a major service economy, with particularly strong links to mainland China and the rest of the Asia-Pacific region.

Pearl River Delta

Hong Kong is the key city on China’s southern coast and adjacent to China’s biggest and most productive manufacturing region – the Pearl River Delta, known as the factory of the world. The Pearl River Delta is the main base for China’s low-cost manufacturing and has emerged as a manufacturing platform of global importance. The Pearl River Delta accounts for 10 per cent of China’s gross domestic product and about 30 per cent of China’s exports. It is the world leader in the production of electronic goods, electrical products, electrical and electronic components, watches and clocks, toys, garments and textiles, plastic products and a range of other goods.

Recognising the importance of the Greater Pearl River Delta, the Chinese government has announced an ambitious 12 year plan to move the Pearl River Delta up the value chain and forge even closer links and co-operation with Hong Kong and Macau. The plan sets out how the region will transform to focus on innovation, encompassing high-end manufacturing and high-technology industries such as automotive, steel, petrochemical and shipbuilding as well as modern services and finance. By 2020, 100 state laboratories for engineering innovation and research and development will be established and at least 10 China-based multinationals with annual sales of US$20 billion will be developed.

Closer Economic Partnership Agreement (CEPA)

The Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) is a free trade agreement which grants easier access to Mainland China markets for Hong Kong-made products and Hong Kong-based service companies.

CEPA is a win-win agreement, bringing new business opportunities to the Mainland, Hong Kong and all foreign investors. For Hong Kong, CEPA provides a window of opportunity for Hong Kong businesses to gain greater access to the Mainland market. CEPA also benefits the Mainland as Hong Kong serves as a perfect "springboard" for Mainland enterprises to reach out to the global market and accelerating the Mainland's full integration with the world economy. Foreign investors are also welcome to establish businesses in Hong Kong to leverage on the CEPA benefits and join hands in tapping the vast opportunities of the Mainland market.

Finland-Hong Kong Trade Association