Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the market for this country.
National Security Law and U.S. Sanctions: The imposition of the National Security Law by Beijing in July of 2020 has created a level of uncertainty regarding the business and investment climate that could affect Hong Kong’s long-term attractiveness as an international business hub.
Foreign firms are bypassing Hong Kong: The trend of foreign firms heading directly to the mainland was accelerated by China’s 2001 admission to the WTO. However, companies that go directly to China without sufficient due diligence may face higher costs and longer delays than if they had first engaged a Hong Kong-based intermediary.
Gaming and tourism eclipse other sectors. In 2019, Macau’s gross gaming revenue reached US$36.6 billion, significantly exceeding the combined revenues of Nevada and Atlantic City. However, many U.S. firms are overlooking opportunities in other sectors. Finding local talent can be challenging, as Macau’s explosive growth has typically led to stiff competition among firms in identifying and retaining high-caliber local managers and staff. This challenge will endure due to Macau’s relatively small local population, and as the territory recovers from the effects of the Covid-19 pandemic.