Hong Kong's Economic Competitiveness

　　Investments between Hong Kong and the Mainland

　　Hong Kong companies are the largest external investors in the Mainland, with cumulative investments of more than US$260 billion accounting for about half of the total value of inward direct investment. Hong Kong's closest economic links are with Guangdong Province. Some 10 million workers in Guangdong are employed by industrial ventures with Hong Kong interests. Implementation of the Closer Economic Partnership Arrangement (CEPA) in 2004 and various policy initiatives to enhance economic cooperation between Guangdong and Hong Kong serve to expand business opportunities.

　　The Mainland is also a major investor in Hong Kong's economy. There are more than 2,000 Mainland-related enterprises operating in Hong Kong. Total direct investment from the Mainland amounted to US$131 billion, making it one of the largest sources of external direct investment.

　　China's Accession to the WTO

　　With continuing reform and liberalization of the Mainland economy, particularly after China's entry into the WTO, Hong Kong's service hub role for the Mainland will continue to strengthen. Hong Kong possesses a strong niche in partnering with and providing business support services for foreign enterprises seeking to enter the Mainland market. In the other direction, as more Mainland-related enterprises seek to extend their business outward, Hong Kong can help them gain access to overseas markets.

　　Gateway to the Mainland

　　Hong Kong is a key gateway to the Mainland for both business and tourism. In 2005, some 62.7 million trips were made by Hong Kong residents to the Mainland. The number of trips made by foreign visitors to the Mainland through Hong Kong totaled 4 million. Every day there are 128 sailings, about 100 flights, more than 400 train connections and 40,200 vehicle crossings between Hong Kong and the Mainland.