Date: June 22-24, 2004

Organiser: Hong Kong Economic & Trade Office ( Canada) - Edmonton, Winnipeg, Canada

Event: Chinese Business Conference 2004 Canada - Trade Road to China

Topic: 2004 Chinese Business Conference ~ Should you Consider Production in China

Hong Kong and Offshore Centres, How to Use Them When Producing in PRC

Hong Kong: Your “Risk Manager” for China Business

Synopsis

HONG KONG – China has clearly emerged as the world’s most exciting trade and investment destination, and Hong Kong is the essential expressway for Canadian companies, especially small and medium-sized enterprises, looking to do business on the Mainland.

This was the message to the Greater Toronto Area that Ms Thomson delivered when she spoke about how companies could manage their “ China risk” at a four-city conference entitled, “ Trade Road to China”.

“In all the rush to do business in China, the business and professional world seems to have forgotten the important role Hong Kong can and should play in this process,” she remarks.

“Thus, we need to go back to basics and explain to everyone looking at China why Hong Kong is so important on all levels – its mature service sectors, excellent legal system, tax advantages, developed banking and commercial sector. It is still the leading gateway to the rest of the world for sale of products produced in China.”

Hong Kong’s territorial tax system is especially significant, Ms. Thomson adds, as a Hong Kong company’s profits from China operations are generally not taxable in Hong Kong. The company’s owners thus have more after-tax income to re-invest in their Asian business, putting more money in their corporate pockets.

“ Hong Kong is increasingly emerging as an essential partner for multinational companies’ PRC operations,” Ms. Thomson explains. “Their factories are in China, but Hong Kong acts as the commercial centre – serving as the financial and banking hub and marketing the factories’ products worldwide.”

Ms. Thomson, a McGill-trained lawyer qualified to practice in Hong Kong, the UK and Australia as well as Canada, founded ICS TRUST in 1980. The company is now entering its 25th year in Hong Kong, where it has been a pioneer in helping international corporations and entrepreneurs to do business in Asia.