'Dual-circulation strategy offers HK opportunities'

The Trade Development Council (TDC) has highlighted that Beijing's dual-circulation strategy, aimed at boosting consumer demand and strengthening global trade, presents substantial opportunities for Hong Kong businesses. In line with the 15th Five-Year Plan, the Chinese government is shifting its growth model towards one primarily driven by consumption rather than exports.

This transition is facilitated by the dual-circulation model, which emphasizes stimulating domestic demand to facilitate products circulating within domestic markets and ensuring internal circulation. Concurrently, the country seeks to further integrate with global markets and investments to bolster what they term external circulation.

Sophia Chong, the executive director of the TDC, speaking on RTHK's Vision 15: Hong Kong's Chapter, noted that Hong Kong businesses should seize the chance to tap into the mainland market, as consumers are increasingly favoring quality products and rejecting the blind pursuit of major global brands. Chong emphasized that the growing consumer interest in the stories behind brands can create growth potential for independent and emerging brands.

Hong Kong's reputation for stringent product safety and adherence to international standards offers a significant business advantage, as local companies can assure mainland consumers of product quality and safety, thereby fostering trust in the market.

The TDC highlighted that the mainland's online market has consistently been the world's largest for 13 consecutive years, with a total scale reaching 23.8 trillion yuan over the past five years. Chong urged local online retailers to be thoroughly prepared to enter this fiercely competitive market, underscoring the TDC's E-Commerce Express programme as a resource for local small and medium-sized enterprises to expand their online sales across the border.

In terms of enhancing global trade, Chong pointed out that while many mainland companies are venturing into global markets, they often face challenges in aligning with overseas legal and admission standards. The TDRC can provide professional services to assist these companies in navigating issues related to finance, accounting, legal differences, and infrastructure development overseas.

To further expand its connections, a new office is set to open in Egypt to strengthen ties with North African markets. Chong advised local businesses to develop comprehensive plans before expanding into overseas markets to mitigate risks and ensure smooth management and implementation phases.