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FY 1999: Hong Kong |
CHAPTER IX. BUSINESS TRAVELA. Business Customs
Over the years, Hong Kong has developed as a unique society based on Chinese tradition and western technology. It is a society which practices religious and racial tolerance. Above all, it is a society that emphasizes hard work and success.
Americans encounter few if any cultural problems when conducting business in Hong Kong. Americans should be aware that Hong Kong people tend to be more formal than many Americans. Business acquaintances are addressed as Mr. or Ms. unless they state that their first name should be used. Business cards are exchanged frequently and the exchange should be fairly formal: the card should be accepted with both hands and a moment taken to read it carefully. "Face" is very important, and problems or areas of disagreement are handled indirectly to avoid loss of "face." While a study of local customs and practices may be helpful, most people in Hong Kong are sufficiently familiar with Western customs that they are tolerant of cultural differences. Business contacts should be treated the same as a formal business relationship in the U.S. Western business attire (suit and tie for men, business suits for women) is appropriate.
B. Travel Advisory and Visas
Visas allowing residence and local employment for expatriates are granted on the basis of simple, comprehensible procedures, are handled in a timely manner and managed in a way that is consistent with the interests of employees. There are no quotas, bonds, or guarantees required. All residents are equal under the law, enjoy freedom of movement, access to public education, and basic civil freedoms.
Visiting Americans generally fit in well. Most Hong Kong business executives speak excellent English, and are accustomed to dealing with Westerners.
C. Holidays
1998 August 17--Sino Japanese War Victory Memorial Day October 1--National Day October 2--The day following National Day October 6--The day following the Mid-Autumn Festival October 28--Chung Yeung Festival December 25--Christmas Day December 26--The first week-day after Christmas Day
1999 January 1--New Year's Day February 16--Lunar New Year's Day February 17--The second day of Lunar New Year February 18--The third day of Lunar New Year April 2--Good Friday April 3--The day following Good Friday April 5--Easter Monday April 6--The day following the Ching Ming Festival May 1--Labor Day May 22--The Buddha's Birthday June 18--Tuen Ng Festival July 1--Special Administrative Region Establishment Day September 25--The day following the Mid-Autumn Festival October 1--National Day October 18--The day following the Chung Yeung Festival December 25--Christmas Day December 27--The first week-day after Christmas Day
Note: The official holiday schedule for 1999 will not be promulgated until later in 1998.
D. Business Infrastructure (eg. transportation, language, communications, housing, health, food)
Housing, food, telecommunications, transportation and healthcare are all available at levels comparable to major American cities. Most people live in apartments in high-rise buildings. Rents for housing are usually very high. Hong Kong has many different types of restaurants, offering a wide array of international food. Grocery stores are also stocked with an international selection of items. Communications facilities are excellent. Long distance telephone and facsimile services can be easily arranged with telecommunications companies, and are available in hotels and business centers. Hong Kong also has a very good public trans- portation system. Major modes of transportation include buses, the Mass Transit Railway (underground subway system), trams, ferries, the Kowloon-Canton Railway, taxis, etc. In addition, almost all major airlines service Hong Kong. Healthcare facilities are also excellent. Private hospitals and private physicians are of international standards.
Your business partners will often speak English, and will negotiate on a very business-like basis. It should be noted, however, that as companies from China continue to expand their business activities in Hong Kong, more business is being con- ducted in Mandarin. When conducting business with these companies, U.S. business people may be well advised to bring along a Mandarin-English interpreter.
E. Temporary Entry of Goods (e.g. laptop computers, software, exhibit materials)
Hong Kong Customs does not restrict the temporary import of goods into Hong Kong, such as laptop computers, software and general exhibit materials, for business purposes so long as the goods are not restricted items which normally require an import license.
The temporary import of supercomputers, which is a controlled item, or of any exhibit materials which are also controlled items, would require a license even if the commodity is being shipped in only for exhibit purposes.
F. Information on Typical Product Pricing Structures (e.g. percent mark-up for products)
Hong Kong is a very open and competitive market. The actual markup varies depending on the product and the industry. Govern- ment contracts, for example, tend to be highly competitive with very thin margins or markups. Consumer goods, on the other hand, have higher markups due to the high local costs, particularly for retail space.
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Note* International Copyright, United States Government, 1998 (or other year of first publication). All rights under foreign copyright laws are reserved. All portions of this publication are protected against any type or form of reproduction, communications to the public and the preparation of adaptations, arrangement and alterations outside the United States. U. S. copyright is not asserted under the U.S. Copyright Law, Title 17, United States Code.