ABSTRACT
This chapter studies Hong Kong’s China-invested companies (the CICs) with special reference to their reverse investment in China. Following a brief review of the history of the CICs, the chapter examines their characteristics based on field survey results. We suggest that, by playing the role of intermediaries between mainland China and the international market, the CICs possess a double-counted advantage due to their close relationships with higher PRC authorities and their current identification as ‘foreign investors’, providing them with a relatively strong strategic position in conducting China business. However, some key organizational aspects, such as technology and marketing, remain underdeveloped for the CICs. Contextual remarks concerning the implications of the CICs’ operations for China’s ‘reform and open door’ process and the evolution of China-Hong Kong connections are also provided.
