There was a time when big businesses in big cities engaged in international trade. But today's market globalization has opened opportunities for even the smallest business owner interested in international profits.
China is one massive market that is expected to be wide open soon, depending on the vote in the U.S. Senate on whether it gets preferred trading partner status with the United States. Expectations are it also will be permitted to join the World Trade Organization.
With its gigantic population and move toward international trade, China is a new frontier for companies that want to gain a foothold into what could be an enormously profitable enterprise — and Hong Kong is positioning itself to serve as trade partner, middleman and business "matchmaker."
Utah business leaders had the chance to hear about these opportunities Wednesday at a seminar co-sponsored by the Salt Lake Area Chamber of Commerce and the Hong Kong Trade Development Council. The event was designed to acquaint local businesses with the trade environment in Hong Kong and provide networking situations with Hong Kong business people.
One Hong Kong enthusiast is Jim Thompson, chairman of Crown Worldwide Holdings, a business he started there in 1970. Things started small but evolved quickly. Crown Worldwide now is one of the largest privately owned moving firms in the world, operating in 124 locations — moving everything from entire factories and power plants to aircraft parts. It also does a substantial amount of document and business information management and buys and builds warehouses.
Thompson, an American citizen, lives in Hong Kong and now employs 3,000 full-time employees, as well as contracting with many more.
"Hong Kong is the freest market in the world and there are so many advantages to operating out of Hong Kong," Thompson said, citing low taxes, a hard-working population and a geographic location that lends itself to trade with all of Asia — but especially with China.
He noted that Hong Kong has the busiest port in the world, one of the most modern airports and quite modern roadways. "A lot of people don't have the perception that it's as advanced as it is, it's very European," he said. Additionally, many business people and virtually all government employees speak English, which is required in Hong Kong schools.
Americans would be wise to partner with Hong Kong business people because China still has a great deal of bureaucracy involving business. "It's improving, but we believe Hong Kong, by cutting through that red tape, can get each manufacturer or person selling a product to a place where he can sell it without a lot of additional costs or heartache or headache," Thompson said.
Dennis Yau, deputy executive director of the Hong Kong Trade Development Council, agrees. "We went through the learning curve the painful way, so we can share our experiences with our American partners," Yau said.
Although there is poverty in the isolated and rural areas of China, there is wealth in the cities, especially major cities, which would be a boon to retail trade, Yau said. And China needs other things that Western countries can provide easily: power plants, factories, roads, sewers, tunnels, bridges and telecommunications networks.
"Once China becomes a member of the World Trade Organization, taking into account this timetable of marketing opening, China's external trade will double in five years, with a lot of imports and exports," he predicts.
China, too, is more modern than many Americans would think. Yau lives in Hong Kong, but as an avid golfer, finds the greens fees high there. "I go to China every weekend to play golf. Within two hours' commuting time, there are 70 golf courses," he said.
Utah would be a natural trade partner since China is keenly interested in high-tech industries, health foods and food supplements, biotechnology, the Internet and e-commerce and other goods and services that are plentiful here.
"We want to reach out to the small- and medium-sized businesses," Yau said. "For small businesses, working with Hong Kong and capitalizing on the experience and expertise we have built over the years working with China, can facilitate and enhance the chances of early success in China."
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