Journalist Takabumi Suzuoki came to Hong Kong in 1999 as a columnist for leading Japanese business daily newspaper, The Nihon Keizai Shimbun (Nikkei). He is constantly impressed by the level of business knowledge in Hong Kong and the SARˇ¦s continuing strength in the manufacturing sector. Mr Suzuoki explains why Japanese SMEs should partner Hong Kong companies to access the Chinese mainland market.
ˇ§Many people regard Hong Kong as the trade and finance centre of Asia, but since coming here, I have also found it to be the best manufacturing city in the world ˇV only without factories.
Guangdong province had become one of the biggest manufacturing areas in the world, and I realised Hong Kong could be the gateway. Having previously lived in the US and South Korea, I perceived Hong Kong to be vital, and saw my future here.
Many Japanese small to medium-sized enterprises are relocating in Hong Kong and I see this trend continuing because of the tax advantages. In Hong Kong a company pays 16 per cent tax or sometimes as little as 8 per cent. In Japan, the tax rate is near 50 per cent.
Apart from a tax that is both low and fair, Hong Kong has a government that does not interfere in business. Hong Kong workers are among the most willing and able in the world, and their level of English is good.
As Japanese firms increasingly shift production offshore, they could learn from Hong Kong and Taiwanˇ¦s business people who know how to find solutions in a business environment no longer based on industrialisation. Ten years ago both faced up to the challenges Japan is facing now.
Japanese manufacturers have two choices: to re-open new factories in the mainland, or to change from a manufacturing company to an importer. In both cases they are better off getting help from Hong Kong companies, which have language and geographical advantages as well as an understanding of the Chinese business culture.
Japanese entrepreneurs could also learn the "business spirit" from Hong Kongˇ¦s business community, making them more independent, modern and effective as managers, and benefit from its IT advantage.
On a personal level, my wife and I enjoy Hong Kong, the convenience of our city lifestyle, the feeling of security and the quality of medical facilities available. Hong Kong is extremely fair to foreigners and we have not experienced discrimination.
The Hong Kong community is educated and the service industry is attentive and professional. My wife and I now aim to get our permanent residentsˇ¦ visas ˇV we want to live here forever.ˇ¨
