Chinese and Asian markets can offer major opportunities for Western Australian businesses, but navigating new regulations, business environments and market dynamics can be complex.
“Hong Kong provides Western Australian businesses with a trusted and internationally-connected platform to expand into mainland China and across Asia,” said Andy Wong, Head of Innovation & Technology and Life & Health Sciences at Invest Hong Kong (InvestHK) – the Hong Kong Government’s investment promotion agency.
“Our role is to help businesses establish, scale and connect with opportunities throughout the region.”
Hong Kong’s appeal as a regional base lies in its global connectivity, investment incentives and ease of doing business.
Setting up a company can take just two days, while the city maintains a simple tax structure, low corporate tax rates and no GST or capital gains tax.
The city is also home to more than 11,000 overseas companies, with about 1,500 using Hong Kong as regional headquarters.
“Hong Kong combines international business standards with direct access to Asian markets,” Wong said.
“We often describe Hong Kong as where East meets West.
“It’s a place where international businesses can operate comfortably while building connections across mainland China and the broader Asian region.”
Systems to support international business
A major part of Hong Kong’s pitch to international businesses is its connection to the Greater Bay Area – an economic region combining Hong Kong, Macau and nine mainland Chinese cities including Shenzhen and Guangzhou.
The Greater Bay Area is a major innovation and manufacturing hub with a population of about 86 million people and an economy valued around US$2 trillion.
For international companies, Hong Kong offers a base to manage finance, contracts and operations while gradually expanding into mainland China and surrounding Asian markets.
“Hong Kong allows businesses to manage finance, legal arrangements and regional operations in one internationally-familiar environment,” Wong said.
He said the city’s common law system, international banking sector and unrestricted capital flows are attractive for businesses managing operations across multiple jurisdictions.
Opportunities across innovation and technology
Hong Kong is also investing heavily into becoming a regional innovation and technology hub, with opportunities emerging across sectors including life sciences, AI, advanced manufacturing and clean technology, as well as research and university education.
“We see strong alignment between Western Australia’s strengths and Hong Kong’s push into innovation-led industries,” Wong said.
“There are opportunities not only to export products and services, but to collaborate on technology, investment and commercialisation.”
Renewable energy and clean technology were also identified as key growth areas, with opportunities linked to WA’s mining expertise, and engineering and manufacturing capability.
“I think WA’s engineering expertise developed through mining can be applied into many other technology sectors,” Wong said.
Government incentives encourage international businesses to establish operations, including R&D tax concessions, salary subsidies for researchers and matching grants for manufacturing projects.
“We want to diversify beyond financial services and continue building Hong Kong as a global innovation and technology centre,” Wong said.
“That’s why the Government is investing heavily into research, talent and business growth.”
Support for WA businesses entering the market
- Market-entry advice
- Sector-specific guidance
- Introductions to investors and industry networks
- Assistance with company setup and visas
- Connections into Hong Kong’s innovation ecosystem
InvestHK has 34 overseas offices, including five offices in mainland China.
“We support businesses through the entire expansion journey – from understanding the market through to establishing operations and scaling internationally,” Wong said.
“Our role is to make expansion into Asia easier and more connected.”
Before investing, consider market complexities
While Hong Kong is a “very accessible market” with a similar business environment to Australia, mainland China and Asia can differ significantly.
“Businesses should invest time into understanding where the right opportunities exist across Asia and mainland China for their product or service,” he says.
“Provinces can have their own economic structure and unique cultures.
“That’s where local guidance and partnerships become important.”
FIND OUT MORE: Businesses interested in exploring opportunities can engage with InvestHK – a one-stop shop for establishing operations in Hong Kong and expanding into mainland China and broader Asia.
If you are looking for support or advice in business, investment or trade, contact our experienced International Trade Services team at [email protected].
