The change of sovereignty has not affected Hong Kong's economy which remains in the world's Top Ten.
The secret to the HKSAR's success is obviously not its size -- rather its
traditional entrepot, low tax status which has encouraged foreign investment.
Approximately, a quarter of all foreign investments come from he former colonial power Great Britain, one-fifth from China, 18% from the United States and 4% from Japan.
China is the HKSAR's single biggest trading partner, with imports and total exports (including re-exports) totaling HK$1.04 trillion (US$134.98 bn.) in 1998, according to the Hong Kong Census & Statistics Dept.
The US is second, with trade totaling HK$421.2 bn. (US$54 bn.) and Japan at HK$244.1 bn. (US$31.29) although the EU, as a group of countries, accounts for HK$363.6 bn. (US$46.62) of total trade.
Establishing a business in Hong Kong is remarkably easy. Business is subject to less government regulation and interference here than perhaps anywhere else in the world. In fact, the government takes a very benign attitude toward business and does as much as possible to encourage it. Numerous organizations exist to advise and assist new business
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