The U.S. trade surplus with Hong Kong is the single largest with a U.S. trading partner, with a surplus in 2017 of $32.6 billion. U.S. goods and services trade with Hong Kong totaled an estimated $69.0 billion in 2017. Exports were $51.9 billion; imports were $17.2 billion. The U.S. goods and services trade surplus with Hong Kong was $34.7 billion in 2017.
Hong Kong is currently our 19th largest goods trading partner with $47.3 billion in total (two way) goods trade during 2017. Goods exports totaled $39.9 billion; goods imports totaled $7.4 billion. The U.S. goods trade surplus with Hong Kong was $32.6 billion in 2017.
There are more than 1,300 U.S. firms U.S. firms, including 726 regional operations, and approximately 85,000 American residents in Hong Kong.
Dominant and sustained drivers of economic growth include private consumption (retail), logistics and business services, financial services, real estate development (bolstered by ongoing public infrastructure works), and tourism. Hong Kong has benefited from continued economic integration with mainland China’s growing economy. In particular, Beijing’s policy of opening its service sector and gradually expanding the scope of the offshore renminbi (RMB – the PRC’s currency) market in Hong Kong and the sustained high numbers of mainland Chinese visitors have strengthened Hong Kong’s economy.
Hong Kong is a free port that does not levy any customs tariff and has limited excise duties. Its strong rule of law and respect for property rights make it a strategic platform for U.S. companies, especially small- and medium-sized firms, seeking to do business in Asia.
The large trade surplus is owed to Hong Kong imports of American aircraft and spacecraft, electric machinery, pearls, gold, diamonds, works of art, meat, fruit and nuts.
The United States remains one of the largest sources of foreign direct investment in Hong Kong
MISC INVESTMENT FACTS
Hong Kong’s key characteristics are its openness, tourism, trade and investment
U.S. foreign direct investment in Hong Kong was $81.2 billion in 2017, a 17.8% increase from 2016. U.S. direct investment in Hong Kong is led by nonbank holding companies, wholesale trade, and finance and insurance.
Sales of services in Hong Kong by majority U.S.-owned affiliates were $29.3 billion in 2015 (latest data available), while sales of services in the United States by majority Hong Kong-owned firms were $5.7 billion.
The top export categories in 2017 were: electrical machinery ($12 billion), precious metal and stone (diamonds) ($12 billion), machinery ($1.9 billion), meat (beef) ($1.7 billion), and art and antiques ($1.6 billion)
U.S. total exports of agricultural products to Hong Kong totaled $4.3 billion in 2017, our 6th largest agricultural export market. Leading domestic export categories include: tree nuts ($1.3 billion), beef & beef products ($884 million), poultry meat & prods. (ex. eggs) ($468 million), pork & pork products ($415 million), and fresh fruit ($291 million).
U.S. exports of services to Hong Kong were an estimated $11.9 billion in 2017, 19.2% ($1.9 billion) more than 2016, and 114% greater than 2007 levels. Leading services exports from the U.S. to Hong Kong were in the intellectual property (trademarks), transport, and financial services sectors.
Treaties and Agreements
Hong Kong, independently of China, participates as a full member of several international economic organizations. The United States and Hong Kong both belong to the World Trade Organization, Asia-Pacific Economic Cooperation forum, and Financial Action Task Force.
U.S. policy toward Hong Kong is stated in the U.S.-Hong Kong Policy Act of 1992 and grounded in the determination to promote Hong Kong's prosperity, autonomy, and way of life.
Pacific Bridge Initiative, the first such agreement with a foreign government affiliate to explicitly supports the U.S. National Export Initiative (NEI). Hong Kong’s businesses enjoy close links to mainland China and the rest of Asia. According to Hong Kong Government statistics, there are 1,313 subsidiaries of U.S. parent companies in Hong Kong, making the United States the second largest source of subsidiaries in Hong Kong. Among those U.S. subsidiaries, 726 are regional headquarters or regional offices.