While China still maintains severe capital controls and frequently intervenes in its financial markets and banking system, Hong Kong is one of the world’s most open economies and one of the world’s largest equities and debt financing markets.
Hong Kong’s GDP is now only 2.7 percent of mainland China’s, down from 18.4 percent when it reverted to Chinese administration in 1997, yet the territory punches above its weight because to its world-class financial and judicial institutions.
Hong Kong accounts for what proportion of China’s GDP?
Hong Kong’s economy is oriented toward the outside world and is heavily reliant on international trade. Hong Kong’s overall goods trade value reached HK$8,197.3 billion (US$1,056.8 billion) in 2020, accounting for about 302 percent of the country’s GDP. Imports totaled HK$4,269.8 billion (US$550.4 billion), accounting for about 158 percent of GDP. Exports totaled HK$3,927.5 billion (US$506.3 billion), accounting for over 145 percent of GDP. In 2020, Hong Kong was the world’s sixth largest goods trade entity (Note 1), with the eighth largest importer and sixth largest exporter.
Hong Kong’s economy relies heavily on the services industry. In 2019, it contributed 93 percent of GDP, and in 2020, it will account for 89 percent of total employment. In terms of Hong Kong’s services trade, total trade in services amounted to HK$1,411.1 billion (US$180.1 billion) in 2019, or almost 49% of GDP. In the international league of commercial services trading firms, Hong Kong was rated 21st in 2020, with the 22nd largest importer and the 21st largest exporter.
What is Hong Kong’s GDP percentage?
From 1980 to 2020, Hong Kong’s current account to GDP averaged 4.78 percent, with a high of 15 percent in 2008 and a low of -6.30 percent in 1995. Actual numbers, historical data, forecast, chart, statistics, economic calendar, and news are provided on this page for Hong Kong Current Account to GDP.
What accounts for the majority of China’s GDP?
The manufacturing sector contributed around 32.6 percent of China’s GDP in 2021. It was by far the largest contributor, followed by the wholesale and retail sector, which contributed 9.7%, and the financial sector, which contributed 8.0 percent to the country’s GDP.
What is the most important aspect of China’s economy?
China was not among the world’s top eight economies forty years ago, following a long period of economic stagnation. China is on track to overtake the United States as the world’s largest economy within a few decades, if not sooner, thanks to a stunning social and economic upheaval that began in the late 1970s. It has already done so in several ways. We are currently living in what is being dubbed “The Chinese Century” by many.
China’s economy is the world’s second-largest, after only that of the United States. However, after three decades of phenomenal growth, China is now entering a slower growth phase, which is an unavoidable consequence of the country’s transition from a developing to a more mature, developed economy. China’s annual GDP growth routinely topped 10% in the 1980s, 1990s, and early 2000s, with an expected 2019 growth of 6.3 percent, though this is likely to be closer to 6% due to the impact of the US-China trade war.
China is expected to grow at a rate of 6.3 percent in 2019 and 2020, and 6 percent in 2021, according to the International Monetary Fund (IMF). These projections nevertheless put it considerably ahead of the growth rates of most other major economies, putting it on course to eventually overtake the US as the world’s largest economy. Manufacturing, services, and agriculture are the three largest economic sectors in China, employing the bulk of the population and contributing the most to GDP. The Chinese government has been in charge of planning and directing the national economy since 1949. But it wasn’t until 1978, when Deng Xiaoping started market-based reforms, that growth really took off, averaging 10% per year for the next 30 years. The Chinese economy rose by nearly 48 times over that time, from USD 168.367 billion (current prices) in 1981 to USD 11.01 trillion in 2015.
China has had what economists refer to as a socialist market economy since Deng Xiaoping’s economic reforms, in which a major state-owned enterprises sector coexists with market capitalism and private ownership. China was able to kick-start the long expansionary boom that continues now thanks to aggressive encouragement of private enterprise beginning in 1978. China’s private sector currently accounts for more than half of the country’s GDP and the majority of its exports. They also generate the majority of new jobs.
On so many levels, China’s unstoppable rise has ramifications and repercussions for us all, and it all boils down to one word: opportunity. Has there ever been an opportunity like China for Australia, and particularly Australian businesses?
Through its five-year plans, which outline goals, strategies, and targets, the Chinese government plays an active role in directing the economy under the socialist-market model. The 1980s and 1990s five-year plans emphasized market-oriented changes, whereas the last two five-year plans have emphasized more balanced growth, increased wealth distribution, and improved environmental protection. The current five-year plan aims to boost China’s competitiveness by promoting more efficient and innovative manufacturing on the east coast, as well as bringing labor-intensive industry to the central provinces and raising domestic demand.
Economic growth has been fueled by export-led industry in previous decades, but it is increasingly becoming more reliant on local demand. The surge in consumption expenditure that has resulted represents a significant opportunity for Australian businesses who can successfully market their products and services to an increasingly affluent Chinese population. Foreign enterprises are also encouraged to engage in important areas such innovative manufacturing, energy conservation, environmental protection, and modern services. Australian firms can benefit from tightened regulations on energy efficiency and environmental protection.
China’s image as a low-cost manufacturing powerhouse since the 1980s, where it efficiently acted as an inexpensive producer for global brands, is shifting as the economy grows. Manufacturers’ profit margins have been steadily declining due to rising labor expenses and an aging workforce. As a result, while cost reduction remains an attractive characteristic of the Chinese market, global and local businesses are beginning to shift their strategy in order to leverage China as a development engine. Currently, China is ranked among the top three regions for producing growth in the coming year by around one-third of global business leaders.
Businesses considering establishing operations in China should be aware that, contrary to popular belief, China’s average wages have been steadily rising in tandem with the country’s economic development, to the point where it is no longer a low-cost hub but rather a dynamic and sophisticated economy. According to the International Labour Organization, the current slowing of the Chinese economy has dampened the wage boom after a double-digit growth in 2009. Nonetheless, average real salaries at state-owned and other urban-based firms increased by 9% in 2016, while private-sector workers’ earnings increased by 8%. The average yearly salary of municipal workers more than tripled from RMB 14,000 in 2003 to RMB 74,000 in 2017, reflecting the Chinese ‘boom.’ However, this new affluence was accompanied by a significant increase in living costs.
Opportunities in China have bloomed across a vast some might say baffling range of industries, market sectors, and geographic locations for Australian enterprises. Rapidly expanding income levels in China, along with widespread migration from rural to urban regions, have resulted in an influx of urban consumers wanting better housing, a cleaner environment, international travel, better education, a higher protein diet, and a wider range of financial services. The newly industrialised China is a fascinating smorgasbord of possibilities, from the sophisticated consumers of developed cities such as Beijing, Guangzhou, and Shanghai to the burgeoning middle classes in lesser-known hinterland cities.
This isn’t to argue that doing business in China isn’t fraught with its own set of difficulties. Foreign enterprises must handle obstacles ranging from complex bureaucracy, challenges in intellectual property (IP) law enforcement, quality control, and the sheer, overwhelming size and variety of the country, in addition to linguistic and cultural barriers, which can be significant. There’s also the overarching challenge of understanding and selling to the Chinese customer, which differs from that of other countries. There’s also the large and highly competitive market for both domestic and foreign businesses, as well as the difficulty of understanding and selling to the Chinese customer.
For Australian businesses prepared to put in the necessary preparation and hard effort to handle these hurdles and successfully establish in China, the benefits can be enormous. The Chinese government has continued to implement measures aimed at strengthening standards and promoting more inbound and outbound trade and investment.
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How did Hong Kong get so wealthy?
Hong Kong’s economy is a well-developed free-market economy. Low taxation, nearly free port trade, and a well-established international financial sector distinguish it. The Hong Kong dollar, which is tied to the US dollar, is lawfully issued by three major international commercial banks. Individual banks in Hong Kong set interest rates in order to ensure that they are market-driven. Although the Hong Kong Monetary Authority serves as a financial regulatory authority, there is no officially recognized central banking system.
Its economy is guided by positive non-interventionism and is heavily reliant on global trade and finance. As a result, it is recognized as one of the best areas to start a business. According to a recent survey, Hong Kong has grown from 998 registered start-ups in 2014 to over 2800 in 2018, with eCommerce (22%) companies, Fintech (12%), Software (12%), and Advertising (11%) accounting for the majority. In 2015, Hong Kong was ranked first in the Economic Freedom of the World Index, with a score of 8.97.
A stable banking system, virtually no public debt, a robust legal system, sufficient foreign exchange reserves (approximately US $408 billion as of mid-2017), strict anti-corruption measures, and close relations with mainland China are among Hong Kong’s economic strengths. Because of Hong Kong’s highly internationalised and modernised financial industry, the Hong Kong Stock Exchange is a popular choice for international and mainland Chinese companies to list. The city’s capital market in Asia, as well as its size, laws, and financial tools, are equivalent to those of London and New York City.
Between 1961 and 1997, Hong Kong’s gross domestic output increased 180-fold. In the same time period, the GDP per capita increased by 87 times. Its economy is slightly larger than Israel’s or Ireland’s, and its GDP per capita was the sixth highest in the world at purchasing power parity in 2011. Its GDP per capita was somewhat higher than that of the United States and the Netherlands, but significantly lower than that of Brunei. As a result of the Great Recession, Hong Kong’s real economic growth declined by 2.8 percent in 2009.
Hong Kong was the world’s seventh largest port by the late twentieth century, second only to New York City and Rotterdam in terms of container traffic. The World Trade Organization recognizes Hong Kong as a full member. The Kwai Chung container complex was Asia’s largest, and Hong Kong’s shipping owners were second only to Greece’s in terms of overall tonnage holdings. With a market capitalization of around US$3.732 trillion, the Hong Kong Stock Exchange is the world’s sixth largest.
What is Hong Kong’s GDP position in the world?
Economic indicators in Hong Kong In 2020, the global gross domestic product per capita was estimated to be at 10.915 US dollars. In contrast, Hong Kong’s GDP per capita was 46.324 US dollars, or 346.59 billion US dollars for the entire country. As a result, Hong Kong is currently rated 35th among the major economies.
Is Hong Kong a wealthy nation?
Hong Kong is the world’s tenth richest country. This former British colony has now become the administrative area of China.
Because Hong Kong is still part of China, questions have been raised about its independence. Although Hong Kong is under the sovereignty of the People’s Republic of China, it operates as a Special Administrative Region with limited autonomy.
Hong Kong is ranked 3 out of 190 international economies in the World Bank’s 2018 Ease of Doing Business index report. Hong Kong is one of Asia’s financial capitals and is one of the world’s top ten wealthiest countries.
Hong Kong’s GDP per capita was at $46,200 in 2018, according to Forbes, and it was ranked third on the list of Best Countries for Business in 2018. As of the end of 2020, the country’s stock market was ranked fifth largest in the world.
Hong Kong has a free market economy that relies heavily on foreign trade and finance to survive. The country is focused on providing services. In 2019, the services sector accounted for over 93.4 percent of the country’s GDP.
For the past decade, Hong Kong has been the busiest international airport for air cargo. Hong Kong, which has one of the busiest ports in the world, was ranked ninth in the world in terms of container throughput.
Hong Kong’s economy has continued to recover from the COVID-19 pandemic, with the country’s GDP increasing by 7.6% over the past year, according to the latest progress report.
In Hong Kong, you have 100 percent ownership of your firm even if you are a non-citizen. Imported items are not subject to tariffs in the country. It has the highest concentration of high-net-worth individuals.
Is China a wealthy or impoverished country?
China is the world’s wealthiest country. Since 2015, China has had the world’s largest middle class population, which rose to 400 million by 2018 and is expected to reach 1.2 billion by 2027, accounting for one-fourth of the global total. China ranked first in the world in total number of billionaires and second in total number of millionaires in 2018, with 658 billionaires and 3.5 million millionaires. According to Credit Suisse’s global wealth report, China surpassed the United States as the country with the most wealthy people. In other words, a hundred million Chinese people are among the top ten percent of the world’s wealthiest people, with a net personal fortune of at least $110,000, as of 2019. In 2020, China will have more billionaires than the United States and India combined, and by March 2021, China will have 1,058 billionaires with a collective worth of US$4.5 trillion.
What is China’s debt to the United States?
Over the previous few decades, China has steadily increased its holdings of US Treasury securities. The Asian nation owns $1.065 trillion, or 3.68 percent, of the $28.9 trillion US national debt, more than any other foreign entity save Japan as of October 2021.