HK economic growth in privatization model

Under the British government leadership, HK fulfilled its laissez-fair private-sector economic growth.

Many refugees fled from the mainland to HK due to the civil war, HK fortunately received the influx of a large number of talents, capital etc.

HK business started to boom with textile industry in 1950’s, and then manufacturing, clothing, electronics, plastics and other labor-intensive industries also boomed and export volume increased accordingly in 1960’s.

At that time, SMEs has contributed a lot to HK economic growth and according to statistics SMEs still employ more than 48 per cent of the city's work force as of the end of 2011.

The mainland opened up in the late 1970’s, HK businessmen were all sensitive and recognized the potentiality, which drove them to move labor-intensive industries to Guangdong province. The move helped those HK SMEs to reduce labor cost greatly.

Hong Kong dramatically transformed into a service-based economy dominated by commercial and financial services as we can see that HK is the international commercial and financial service center.

At the end of 2010, the services sector accounted for almost 93 per cent of Hong Kong's GDP and employed over 70 per cent of its workforce.

Now HK economy was diversified into different sectors with some emerging industries.

We can see SMEs contributed a lot to HK economic development. Mainland SMEs are still growing under the current macro-economic conditions of EU debt crisis and American economic uncertainties.

SMEs are struggling for survival and SMEs urged the government to issue favorable policies such as lowering taxes etc.