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China's Entry into the WTO and the Impact on Hong Kong Business

18 January 2000

Opportunities for Hong Kong

• Information technology.

  - Help establish telecommunications infrastructure in china.

  - Chinese software.

  • Center for IT development throughout china.
  • China interest in Linux.

  - E-commerce and e-services.

  - Support services for china companies.

  • Consulting in IT development.
• Entertainment and Education.

- Relaxed restrictions on film import.

- Foreign ownership of distribution and theaters.

• Only 3000 theaters in China vs. 31,000 in the US.

- Digital entertainment.

• Broadband services.

- Education.

• Less than 10% of population go to University vs. 50% in US.

Hong Kong Challenges

• Diminishing of the "middle man" role.

- SME slow to adapt.

• Lack of technology professionals in HK.

• Structural constraints to E-business on the mainland.

- Poor infrastructure, protectionism, lack of penetration of machines.

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