China

Economic relations

Hong Kong is France’s third largest trade surplus (€5.1 billion in 2023). The aviation industry is traditionally our leading export sector and Cathay Pacific shared its intention at the end of 2023 to purchase new Airbus aircraft. The other major export sectors are agri-industry (French wine and food are appreciated) and luxury goods (textile, jewellery). To counter the investigation opened in mainland China on cognac imports, on 16 October 2024, the Chief Executive of Hong Kong announced a dramatic reduction in the spirts tax (from 100% to 10% on the portion of the prices per litre exceeding HKD200, or €23.6) to the benefit of our exports: a portion devoted to China could transit through Hong Kong. The territory is a very significant source of capital that is more open than in the past to investing in France in the context of Brexit and China-United States tensions.

Our major finance players are well established in Hong Kong, and recognized in the area of green finance. The opportunities in the sustainable city sector (big contracts for infrastructures and waste recycling) are significant for our companies, given the large-scale city projects as part of the Greater Bay Area in development in the decades ahead. Innovation (fintech, biotech, etc.) also has a trade potential to keep an eye on given the means mobilized by the authorities. In early 2016, France established a French Tech Hub in Hong Kong, aimed at fostering the integration of French start-ups into the local environment and promoting the attractiveness of the French ecosystem for Hong Kong’s start-ups. This hub has since transformed into a French Tech Hong Kong-Shenzhen community.

Hong Kong is a very significant source of capital, and more open than in the past to investing in France in the context of Brexit and China-United States tensions. According to the Hong Kong authorities, in 2022, France ranked 2^nd among European investors in Hong Kong (€12.1 billion in stock) after the United Kingdom, and 12^th globally. Hong Kong is the 33^th destination for French investments abroad, and ranks 6^th in Asia. Our economic attractiveness strategy is currently focused on the high-end hospitality sector. Tourists from Hong Kong have high purchasing power (410,000 millionaires). During the 2024 Paris Olympic Games, they spent more than any other Asian tourists ( €20 million).

According to the local institute of statistics, France had 346 subsidiaries in Hong Kong in 2023, including 81 active regional headquarters (89 in 2021), 100 regional officers (with more limited regional activity) and 165 subsidiaries focusing only on the local market. With these statistics, France ranks 8^th among all subsidiaries in Hong Kong (behind the United Kingdom and Germany).