The financial services hub of Asia is located at the south of mainland China: Hong Kong. This Asian Tiger that became one of the fastest growing economies in the world, flourished well under the “One Country, Two Systems” policy proposed by China’s President Deng Xiaoping. Although the socialist economic system in mainland China is not practiced in Hong Kong, its previous capitalist systems and lifestyle will remain unchanged for at least 50 years until the year 2047.
This arrangement works well for Hong Kong as it continues to draw resources, economic stability, and growth from mainland China. After all, Hong Kong’s GDP had at one time been one of the world’s most impressive growth rates in the world. Its strategy to adopt an outward-looking policy with export-oriented industrialization paid off. In fact, Hong Kong led the path for the other Asian Tigers to follow with similar successes and achievement.
For multinational companies that have businesses in mainland China, Hong Kong remains a haven for skills and talent. Rubbing off from China’s economic growth, Hong Kong remains a popular destination for westerners, both from cultural and economic perspectives. After China opened its trade doors to the world, job seekers who were looking for global exposures and foreign assignments from Hong Kong started to flock to China when huge job opportunities were created, especially by multinational companies. Many of these job seekers were sent on such foreign assignments to China to start the China operations in major cities, smaller cities, or towns with lucrative compensation packages.
If China remains economically stable and continues to drive positive growth, Hong Kong will almost be secured of a seat at China’s table if Hong Kong maintains its competitive advantage as the talent hub. China’s success will surely rub off on Hong Kong as Hong Kong’s economy largely relies on the services sector for higher labor earnings, and employment prospects and opportunities.