Originally Posted by TheRoadAhead:
Because it is not the same. As of today Hong Kong enforces the rule of law. Why do you think most shipping contracts are based on HK law? Why is HK the 7th largest port in the world, in a tiny city that has less than 8M people?
Why do foreign investors open subsidiaries here in HK and not China? They certainly do not want to deal with Chinese courts, and the wider Chinese law. Chinese banks are also a pain to deal with, especially if you are a foreign entity. Chinese law was made to put their own interests first.
As I said analyze the factors that have made HK so successful today and you will realize why there is so much potential for HK to remain prosperous in the long term. However China will open up in the next 15-20 years and I can rationally envision MNCs bypassing HK completely.