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Hong Kong is one of the top- ten economies of the world. It is the Asia-Pacific¶s premier import/export
hub for intra-Asian trade, as well as trade between East and the West. The Hong Kong Special
Administrative Region of the People's Republic of China (HKSAR) is committed to an open market
policy. This policy applies to all trade, as well as to all investments in the HKSAR.

Hong Kong has become a Special Administrative Region of the People's Republic of China since 1
July 1997. The "One Country, Two Systems" principle provides the HKSAR with a high degree of
autonomy in economic, trade, financial and monetary matters. This is guaranteed by the Basic Law,
the mini-constitution of the HKSAR, which ensures that the important elements making Hong Kong a
regional business and financial centre will extend well beyond 1997, including continuation of
capitalist economic and trade systems, free movement of goods and capital, and status as a free port
and separate customs territory. Tariff preferences and other similar arrangements obtained by the
HKSAR will be enjoyed exclusively by the HKSAR. The Basic Law also provides that the HKSAR may
participate in relevant international organizations and international trade agreements under the name
"Hong Kong, China".c

In 1986, Hong Kong became a separate contracting party to the General Agreement on Tariffs and
Trade (GATT). Hong Kong was one of the original members of the World Trade Organization (WTO)
when it was established on 1 January 1995. Hong Kong also became a member of the Customs
Cooperation Council (subsequently renamed as the World Customs Organization) in 1987 and the
Asia-Pacific Economic Cooperation (APEC) in 1991. The status of the HKSAR in these and other
international organizations remains unchanged except participation is now under the name "Hong
Kong, China".c


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• India is a significant trading partner of Hong Kong. Bilateral trade between Hong Kong and
India increased 33.5% from HK$82.6 billion in 2007 to HK$110.2 billion in 2008. In 2008,
th th
India was Hong Kong's 9 largest trading partner; 17 largest market for domestic exports
th th
and 7 largest market for re-exports; and 9 largest source of imports.c

• Hong Kong is also an important entrepot for trade between the Mainland of China and India.
Re-export of goods of Mainland origin through Hong Kong to India increased by 32% from
HK$12.7 billion in 2007 to HK$16.8 billion in 2008.c

• Hong Kong's domestic export of goods to India totalled about HK$933 million in 2008. The top
three export categories to India in 2008 were:c

å Telecommunications and sound recording and reproducing apparatus and equipmentc

å Electrical machinery, apparatus and appliances and electrical parts thereofc

å Printed matter & apparel products.c

• Hong Kong's import of goods from India totalled about HK$58.0 billion in 2008. The top three
import categories from India in 2008 were:c

å Non-metallic mineral manufacturesc

å Jewellery, goldsmiths' and silversmiths' wares, and other articles of precious or semi-
precious materialsc

å Leather, leather manufactures and dressed fur skinsc

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