Hong Kong hopesto lure Hub firms

Written By Unknown on Senin, 22 Oktober 2012 | 18.38

Hong Kong officials are ramping up efforts to attract Bay State companies to set up operations in the Asian city to combat tepid economic growth and provide ample access to the state's wealth of academic, biotech and financial services resources.

"We welcome Boston investment, but to be very honest, I'm most interested in seeing more Boston companies in Hong Kong, which would help to foster exports further," Donald Tong, Hong Kong Commissioner for U.S. Economic and Trade Affairs, told the Herald. "We do know that biotech in Boston is very strong and also green technology. We are hoping to foster academic exchanges and have some of them turn into business propositions."

The region of seven million saw its real gross domestic product grow by only 0.9 percent in the first six months of 2012, compared with a year earlier, Tong said. The city has also lowered its GDP forecast for the year to 1 to 2 percent.

Tong, who visited Boston last week, said Massachusetts companies and firms should consider opening offices and manufacturing their goods in Hong Kong so they could export goods to China tariff-free under a free trade pact between the regions. China is currently the state's third largest export destination, with $2 billion worth of goods exported there last year, Tong added.

"It would not have the same benefits if they manufacture in Singapore, Malaysia, Indonesia," Tong said. "The only place that enjoys such benefits is Hong Kong."

Switching to bank accounts in Hong Kong also would help offset depreciation against the U.S. dollar, Tong added.

Bay State companies already with a Hong Kong presence include Liberty Mutual Insurance Group, Massachusetts Mutual Life Insurance, TJX Cos., EMC Corp., State Street Corp., Fidelity Investments and Boston Scientific, Tong said.

Michael Goodman, a public policy professor at the University of Massachusetts Dartmouth, said he wasn't surprised Hong Kong was trying to make an economic pitch to Massachusetts, but the state may not be easily swayed.

"If you're in Hong Kong and you look at a map of the U.S. to try to target economic opportunities, Massachusetts would be a very logical state to put on that list," he said. "It may end up making good sense for business firms, but the commonwealth has an interest in retaining jobs and as much of the firm's economic operations here in Massachusetts as possible."


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