U.S. Consulate General, Hong Kong

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U.S. Consulate General, Hong Kong
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Hong Kong Basic Facts

• Seven million people
• Top business infrastructure (e.g. airport, local
  transport, MTR), First world freedoms
• Unique blend of East and West
• Educated, cosmopolitan population
• Trilingual replacing bilingual
• Open market, services oriented economy
• Focused on China and the West / Macau
• Worlds largest port key finance center

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U.S. Interests in Hong Kong

• 55,000 American residents in HK and Macau
• Over 1,200 U.S. companies here
• 12.3b in imports from US in the first three
  quarters of 2005. We have a 6b trade surplus
  (for city of 7m, thats exceptional)
• U.S. direct investment totals 43.7 billion USD

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U.S. Consulate in Hong Kong

• One of the biggest (after Frankfurt)
• Size of a larger mid-sized embassy
• 13 agencies, about half are law enforcement
• About 150 American staff
• About 200 local staff
• Responsible for Hong Kong and Macau
• Reports to Washington directly under One
  Country, Two Systems formula

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Major Areas of Emphasis

• Anti-terrorism and law enforcement cooperation
• Public Health/Avian Influenza
• Our views on HKs autonomy civil liberties
• Trade
• American Citizen Services

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Hong Kong and Mainland China

• Chinese city most exposed to the West
• Good example for rule of law, free flow of
  information and human rights
• English common law enforceable contracts
  neutral courts for some mainland contracts
• Strong market economy
• Picture of what China could be
• China looks to Hong Kong as an economic example

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Hong Kong Economics

• Highly developed urban center
• 24,000 USD per capita GDP
• First world infrastructure
• Service-based economy the services sector
  constitutes 90 share of HKs GDP and accounts
  for 86 of total employment historic multiple
  reinventions
• Worlds busiest port
• Two recessions since 1997, but HK has bounced
  back soundly since SARS. Reflected in property
  prices.

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Hong Kong Politics

• One Country, Two Systems model
• High degree of autonomy from PRC in all areas,
  except foreign policy and defense
• Able to remain a capitalist economy after
  handover
• System for 50 years until 2047
• Operates under Basic Law
• Some in Beijing would like HK more sinified

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Hong Kong Politics (continued)

• Lively press
• Some questions on press freedom, self-censorship
• Mixed bag on journalistic ethics and quality
• Active political parties and civic organizations
• July 1 demonstrations
• New party and policy group formed in 2006 Civic
  Party, Savantas Policy Institute
• Other recent changes

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Hong Kongs Role in China

• Hong Kong money and expertise fuels Chinas
  development
• Investment
• Half of Chinas foreign investment comes from HK
• Trade
• Half of Chinas trade goes through HK
• Pearl River Delta/Southern China
• 65,000 HK companies employ 11 million mainland
  Chinese

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Chinas Role in Hong Kong

• China looks to HK for experience in international
  business
• HK is a capital-raising center for PRC business
• In 2004, HK raised more equity funds than such
  traditional financial markets as London and Tokyo
  second only to New York.
• One Country, Two Systems model
• Small official presence
• Beijings Liaison Office
• Mainland companies in HK
• Linked in defense and foreign affairs

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Hong Kong and U.S. Partnerships

• Fight against terrorism
• Aggressive bank screening
• Implementation of UN resolutions and legislation
• Law enforcement
• Excellent cooperation with extradition, prison
  transfers and legal assistance
• Education and exchanges

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Educational Exchange

• About 7,000 HK students in the U.S.
• Strong ties already established through
  educational exchange / university faculty and
  administration
• Wed like to see more