ABSTRACT
This chapter describes the People’s Republic of China (PRC’s) enterprise groups in Hong Kong, and reviews business activities and operations with an analysis of the motivations behind business venture development for China. The PRC government did not have any state-owned enterprise in Hong Kong before 1949. The motivations behind the increasing influx of China-based business establishments are not difficult to identify. The PRC business entities in Hong Kong have diversified their lines of business. Traditionally, the PRC’s established enterprises in Hong Kong were agency operations, distribution, and retailing. The involvement in industrial production indicates China Resources’ new-venture direction. Business entities and organizations in the mainland seeking funds from abroad usually operate through their affiliates in Hong Kong, in order to bypass the application for permission from the Foreign Exchange Commission as normally required. Employing foreign capital without losing sovereignty is only one face of the coin.
