To reduce the negative impact brought about by the weakening traditional expor t market , many Hong Kong enterprises have quickened their pace in developing the Mainland domestic market. According to a survey we conducted in 2011 on the business strategies of our members operating in the Pearl River Delta (PRD), the Mainland domestic market has gained increasing importance with every Hong Kong enterprise expressing a desire to gain a foothold there. The survey also shows that almost 60 percent of the responding companies are selling their products to the Mainland market while another 20 percent are planning to do so. Moreover, Central China, North China and Northeast China have replaced South China and East China to become the most significant destinations for Hong Kong products.
Following the signing of the “Closer Economic Partnership Arrangement” (CEPA) between Mainland China and Hong Kong, this Association has taken the initiative to organize the Hong Kong Brands and Products Expo (HKBPE) in various Mainland cities including Shanghai, Qingdao, Chengdu, Harbin, Shenzhen and Nanning. We have one objective in mind: to help Hong Kong enterprises explore the vast Mainland market. In a further attempt to assist Hong Kong enterprises in developing the relatively untapped Central China market, we have just launched the “2012 Hong Kong Trendy Products Expo, Wuhan” at Wuhan International Convention and Exhibition Centre from 28 April to 2 May. Featuring 240 booths in six thematic zones, this Expo is designed to raise the popularity of Hong Kong brands and products in the Mainland, especially in Hubei.
We are greatly encouraged that the “2012 Hong Kong Trendy Products Expo, Wuhan” has received tremendous support from the HKSAR Government. Indeed, the Expo is one of the signature programmes of the “2012 Hubei Wuhan Hong Kong Week” mounted by the HKSAR Government concurrently in Wuhan. Additionally, the CMA and the Hong Kong Brand Development Council are able to benefit from the SME Development Fund of the Hong Kong Trade and Industry Department in carrying out a series of activities under the theme of “Wuhan Hong Kong Brand Week”. This project covers a diverse range of activities aiming to promote the collective image of Hong Kong brands and products. The highlight of the project is a gallery set at the centre of the Expo, showcasing over 160 quality products of 70 selected Hong Kong brands. Other core activities include a questionnaire survey on visitors to find out the buying behaviour of local consumers, and a business networking meeting to facilitate business matching between Hong Kong brands and Mainland distributors.
Our experience in Wuhan indicates that government support plays a key role in unlocking the door to the vast Mainland domestic market. To eliminate barriers for Hong Kong products in entering the Mainland market, both the Central and HKSAR Governments are well advised to extend all necessary assistance to Hong Kong enterprises to develop the Mainland market under the umbrella of CEPA’s “Trade and Investment Facilitation”.
In our opinion, other measures worthy of consideration include allowing deferred payments of import-related value-added tax on goods of Hong Kong origin; lowering the requirements of the CEPA origin rules; simplifying the clearance and certification procedures; relaxing restrictions on the domestic sales of processing trade goods; enhancing the “sale before taxation” arrangements, as well as speeding up mutual recognition of product-testing between Mainland China and Hong Kong.