What does Hong Kong’s economy rely on to develop?

Hong Kong’s economy mainly relies on three development methods: re-export trade, tourism and shopping:

——1. Re-export trade is also called transit trade. Re-export trade refers to the business of importing and exporting goods in international trade. It is not conducted directly between the producing country and the consuming country, but is carried out through a third country (or region).

——This kind of trade is re-export trade to the transit place. Traded goods can be transported from the exporting country to a third country (or region), and then sold to the consumer country without processing in the third country (conversion of packaging, classification, selection, packing, etc. are not considered processing); they can also be directly sold without going through a third country. It is shipped from the producing country to the consuming country, but there is no trade connection between the producing country and the consuming country. Instead, the transit country trades with the producing country and the consuming country respectively. Since China is the country that has encountered the most anti-dumping in the world, this form of trade has almost become one of the exclusive ways to avoid trade sanctions.

——Because Hong Kong is a free port, also known as a "free port", it is a port where all or most foreign goods can enter and exit duty-free. This kind of port is classified outside a country's customs territory (i.e., customs territory). Foreign goods are exempt from paying tariffs when entering and leaving the port, and they can be freely modified, processed, long-term stored or sold in the port. Tariffs are only required when goods are transferred to domestic consumers where the free port is located. Therefore, Hong Kong can gain huge commercial benefits by using its unique location advantage to engage in re-export trade; on the other hand, it can help Chinese goods open up new foreign trade channels. , to circumvent other countries’ trade sanctions;

——2. Tourism is a bright business card of Hong Kong. Hong Kong is located in the Pearl River Delta region of South China, with a warm and pleasant climate and a cultural landscape where Chinese and Western cultures blend. Therefore, Chinese and foreign people can not only find symbols of their own culture but also appreciate exotic landscapes here. Chinese and foreign tourists enjoy it;

——3. Shopping is also another major feature of Hong Kong’s economic landscape. Because Hong Kong is a free port, there are no tariffs on goods, so all kinds of luxury goods are relatively cheap, so it is called a shopping paradise. .