Re:China surpasses US as world's largest trading nation
by monsterix on Saturday January 11, 2014 @03:25PM
(#7043622)
That's a very interesting observation.
It's important to note that China does have a dual system of Governance within itself: Democracy (Hong Kong) + Communist control (Mainland). Thus it can, and does, leverage best of both worlds to doing business efficiently.
This also means that Hong Kong, for a city, is in a very strong position to grow up into a cutting edge city of future given the volumes it has to handle for mainland China.
The one point I'd like to add is that China incentivizes their companies to export through tax rebates and then incentivizes imports from HK through the absence of tariffs. The makes it profitable for companies to artificially boost exports. I have not seen similar mechanisms available in the US.