Why Hong Kong Is Still One of the Best Gateways to Asia for American Companies
- Kristina Coluccia
- Jan 7
- 3 min read
In a world reshaped by global health crises, shifting political tides, and evolving trade dynamics, it's fair to ask: is Hong Kong still the right place for American businesses looking to expand in Asia? For many firms weighing their next move, the answer is increasingly clear—yes, and perhaps now more than ever.
Hong Kong’s value as a regional gateway has always been grounded in geography, but its strategic location is only part of the story. Sitting at the heart of Asia, within five hours' flight of half the world's population, Hong Kong offers unrivalled access to Mainland China, Southeast Asia, Japan, and beyond. Its world-class infrastructure—including one of the world’s busiest cargo airports, an advanced port network, and seamless cross-border transport links into the Greater Bay Area—makes it a logistical powerhouse. For American companies operating regional supply chains, Hong Kong continues to offer unmatched efficiency and reliability.
Beyond physical infrastructure, what sets Hong Kong apart is its operating environment. It remains one of the few places in Asia where business is conducted predominantly in English, with contracts, courts, and government services all available in the language most familiar to American executives. This accessibility is reinforced by its adherence to the common law legal system, a legacy of its British history that ensures clarity, consistency, and fairness—particularly in areas like contract enforcement, intellectual property protection, and corporate governance.
Taxation is another key area where Hong Kong outperforms regional rivals. The city maintains a simple and low-tax regime: corporate profits are taxed at a flat rate of 16.5%, and there’s no VAT, no capital gains tax, and no withholding tax on dividends or interest. Compared to Singapore, where tax incentives are often tailored toward very specific sectors, Hong Kong offers a more universally business-friendly environment. Compared to Mainland China, the contrast is even sharper, with lower effective rates, lighter compliance burdens, and fewer bureaucratic layers.
Then there’s the people factor. Hong Kong’s workforce is young, highly educated, and international in outlook. Its universities consistently rank among the best in Asia, producing talent in areas from finance and law to engineering and data science. For American companies looking to scale regionally, Hong Kong also provides a deep pool of bilingual professionals who can bridge markets and cultures. Moreover, the city remains a magnet for global talent, with liberal visa policies and a lifestyle that continues to attract expatriates and executives from around the world.
Importantly, this is not just theory—real companies are proving it every day. Citi and Morgan Stanley continue to run major operations from Hong Kong, using it as a base for their Asia-Pacific strategies. Tech companies such as Amazon Web Services and Google have scaled regional services from Hong Kong’s cloud and data infrastructure. Logistics giants like UPS and FedEx have integrated the city into their regional distribution networks, while smaller American firms in sectors like fintech, food & beverage, and healthtech have found a supportive ecosystem of accelerators, government funding, and cross-border opportunity.
Despite the noise of recent years—whether related to COVID-19 lockdowns or political transitions—Hong Kong has remained open for business, resilient, and internationally connected. It continues to rank as one of the world’s freest economies and easiest places to do business. For American companies looking not just to enter Asia, but to thrive in it, Hong Kong offers a rare combination: the speed and dynamism of an Asian hub, with the legal clarity, tax advantages, and global mindset that US businesses value.
In short, if your business is looking at Asia, look at Hong Kong not as a risk—but as a strategic edge.
Woodburn Accountants & Advisors is one of China’s most trusted business setup advisory firms.
Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.