Hong Kong-Macau - Market ChallengesHong Kong - Macau-Market Challenges
Hong Kong
Increasing competition from the mainland: Even as integration has given Hong Kong greater market access and growth opportunities, higher costs in Hong Kong have led to a hollowing out of its manufacturing sector. Mainland rivals are becoming more competitive, even in sectors where Hong Kong has long been dominant, like container port operations, logistics, and related trade and financial services.
Foreign firms are bypassing Hong Kong: The trend of foreign firms heading directly to the mainland was accelerated by China’s 2001 admission to the WTO. Companies that go directly to China without sufficient due diligence, however, may face higher costs and longer delays than if they had first engaged a Hong Kong-based intermediary.
Increasing competition from the mainland: Even as integration has given Hong Kong greater market access and growth opportunities, higher costs in Hong Kong have led to a hollowing out of its manufacturing sector. Mainland rivals are becoming more competitive, even in sectors where Hong Kong has long been dominant, like container port operations, logistics, and related trade and financial services.
Foreign firms are bypassing Hong Kong: The trend of foreign firms heading directly to the mainland was accelerated by China’s 2001 admission to the WTO. Companies that go directly to China without sufficient due diligence, however, may face higher costs and longer delays than if they had first engaged a Hong Kong-based intermediary.
Macau
Gaming and tourism eclipse other sectors. In 2016, Macau’s gross gaming revenue reached US$27.9 billion, significantly exceeding the combined revenues of Nevada and Atlantic City combined. However, many U.S. firms are overlooking opportunities in other sectors. Finding local talent can be challenging: Macau’s explosive growth has led to stiff competition among firms in identifying and retaining high-caliber local managers and staff. This challenge will endure due to Macau’s relatively small local population.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.