Hong Kong has plenty to offer Rhode Island businesses

DONALD C.K. TONG said his office has spoken with EDC about expanding a student-exchange program. /
DONALD C.K. TONG said his office has spoken with EDC about expanding a student-exchange program. /

Donald C.K. Tong, Hong Kong commissioner for economic and trade affairs in the U.S., recently visited Providence to discuss international trade with students at Brown University. The U.S. is one of the largest of Hong Kong’s international trading partners, second only to China. Rhode Island exported more than $35 million worth of goods to Hong Kong in 2008, including 9 million computers and electronic-equipment pieces [from as many as five companies, according to the state] as well as 11 million units of miscellaneous goods.

PBN: What are the responsibilities of the commissioner?
TONG: Our key job is to promote ties between the U.S. and Hong Kong on economic, trade and certainly cultural fronts. … We also have a special unit that offers one-stop, free service to companies in the U.S. which are interested in doing business in Hong Kong or through Hong Kong with the mainland [China]. …
One promotion, our latest one, which we are working on with the [U.S.] Department of Commerce, is we would like to step up our promotion of U.S. wine in Hong Kong. … We’ve been working with [New York] and Napa Valley [Calif.] people. … We used to have a 40 percent duty on wine, that’s a lot. We waived that last year. So, as a result of that, the wine business has shot up quickly and indeed, just for the past 12 months, the value of wine imported into Hong Kong has gone up to $370 million, an increase of 18 percent over the same period last year.

PBN: What kind of products is Hong Kong looking for from Rhode Island?
TONG: Generally speaking, our imports from the U.S. are in the areas of electronic goods, consumer products, electric goods, information technology products, office machines and, of course, agricultural products as well. These are the key areas.
One particular area we find in Rhode Island is your jewelry business. Hong Kong is a major jewelry exporter and each year we conduct two internationally acclaimed jewelry fairs. Indeed, Rhode Island [and] New York state have sent delegations to Hong Kong [for the fairs.] I’m glad to say your [R.I. Economic Development Corporation] has already been working with our U.S.-Hong Kong people, so they work together and help out Rhode Island businessmen to explore business opportunities in Hong Kong. Of course, Hong Kong is an important market in itself, but there’s also another bigger market right next door and that’s China. They have a 1.3 billion population. …You are not just selling to the 7 million people in Hong Kong, you’re talking about the big market up north. Indeed, quite a fair share of U.S. products and products from all over the world go through Hong Kong and reach China. … FM Global [Rhode Island’s largest private company] has an office in Hong Kong. [Providence Equity Partners also has an office there.]

PBN: If I were a businessperson here in Rhode Island, how would I go about trading with Hong Kong?
TONG: You can certainly call us or e-mail us, and then the next step is our U.S.-Hong Kong colleagues will then possibly call the businessman concerned or most likely pay them a visit here in Rhode Island. …
We would be the matchmaker, depending on what you want to do. Sometimes you just want an agent in Hong Kong, sometimes you want to establish your own company in Hong Kong, or sometimes you want to find a partner [on] the mainland. … Hong Kong businessmen have 60,000 enterprises in south China alone, that’s a lot. They employ close to 10 million people. In Hong Kong, we only have a working population of less than 3.7 million, so you can see that we are actually employing many more people [on] the mainland. There is one very important factor when it comes to exploring the China market or the Hong Kong market. Certainly, I think for American businessmen, they can go directly to the mainland. … But many American companies have chosen to go through Hong Kong. … We have 1,300-plus American companies in Hong Kong, about 21 percent of the overall number of 6,600-plus overseas companies, the largest contingent of overseas companies in Hong Kong. The American chamber of commerce in Hong Kong is the biggest outside the U.S.
The [Hong Kong] rule of law, the legal system, is similar [to that of the U.S.]. We do not practice mainland law, there’s still a common-law legal system so I think Americans get more used to it. Most of the Hong Kong people are fluent in both Chinese and English. And, of course, we respect intellectual property very much. We have very strong intellectual property protection law. … Our government people do not know China best in terms of doing business, but our business community [has] have built up all sorts of networks. … We have the connections, and connections are extremely important.

- Advertisement -

PBN: Any plans for closer ties between Rhode Island and Hong Kong in the future?
TONG: Absolutely. We just talked to your EDC on [expanding] a student exchange program, not just confining it to [the program that now exists between] Brown University and the Chinese University of Hong Kong.
Tourism is very important to Hong Kong. Last year, we had a record high of 29.5 million tourists, including approximately 57 percent coming from the mainland. That’s approximately 17 million from the mainland. They are heavy shoppers. … We are going to build a cruise terminal in Hong Kong, and the first berth will be ready in 2013. … We will also be building a new cultural district featuring museums and art venues, this will be another major attraction. •

INTERVIEW
Donald C.K. Tong
POSITION: Hong Kong commissioner for economic and trade affairs in Washington, D.C.
BACKGROUND: Tong became the most senior representative of the Hong Kong government in North America in October 2008, overseeing the work of the three Hong Kong trade offices in Washington, D.C., New York and San Francisco. He previously was deputy secretary for home affairs and has worked in various government departments and bureaus in Hong Kong.
EDUCATION: B.A. in economics from the Chinese University of Hong Kong, 1983
FIRST JOB: As a summer intern at the age of 16, he packed cookies for a Hong Kong company.
RESIDENCE: Bethesda, Md.
AGE: 48

No posts to display