Hello, Super Students! The Economy of Hong Kong
Have you ever wondered why Hong Kong has so many shiny skyscrapers, cool MTR trains, and fun places to visit? It's all because of something called the economy! Don't worry, it's not a scary word. The economy is just about how a city makes and spends money.
In these notes, we'll become detectives and find out the secrets behind Hong Kong's busy and successful economy. Let's begin our adventure!
Section 1: What Makes Hong Kong's Economy So Strong?
Think of an economy like a superhero. What gives it its superpowers? For Hong Kong, there are two main things!
Superpower 1: A Perfect Location!
Hong Kong has a very special spot on the world map. This is its geographical location.
• It's right on the coast of our country, China.
• It has a deep, natural harbour where big ships can easily come and go.
• It's like the main gate between the Mainland of China and the rest of the world!
Analogy Time! Imagine you have the best lemonade stand on the busiest street corner where everyone walks by. You'd get lots of customers, right? That's what Hong Kong's location is like for businesses and ships!
Superpower 2: Smart Rules and Good Systems!
Having a good location isn't enough. You also need good rules to help everyone succeed. Hong Kong has them!
• Low Tax Rates: A tax is a little bit of money that people and businesses give to the government. In Hong Kong, the tax is very low. This is like getting to keep most of your pocket money! It encourages people and companies from all over the world to come here to work and do business.
• A Robust Legal System: This means Hong Kong has very clear and fair laws that protect everyone. Businesses know they will be treated fairly, so they feel safe to invest their money here.
• Help from Our Country: Our country, China, gives Hong Kong special advantages and support (called concession measures) to help its economy grow even stronger.
Key Takeaway for Section 1
Hong Kong's economy is strong because of its fantastic geographical location and its smart systems, like low taxes and fair laws.
Section 2: The Government's Money Jar
The Hong Kong government also has to manage its money, just like we do with our piggy banks. Let's see how it works.
How the Basic Law Protects Our Money
The Basic Law is the special rulebook for Hong Kong. It has important rules about the economy. One very important rule is that the government should try to keep its spending within its income. This means it shouldn't spend more money than it gets!
Where Does the Government's Money Come From? (Revenue)
The money the government collects is called revenue. The main source of revenue is taxes.
• When grown-ups get paid from their jobs, they pay a small part as tax.
• When businesses make a profit, they also pay tax.
• All this tax money goes into the government's giant "money jar".
Where Does the Government's Money Go? (Expenditure)
The government spends its money on things that help everyone in Hong Kong. This is called expenditure.
This money is used to:
• Build schools and hospitals.
• Create beautiful parks and libraries.
• Pay for police officers and firefighters to keep us safe.
• Run the MTR and build roads.
Our Rights and Responsibilities
It's a team effort! As residents of Hong Kong, we have:
• Rights: We have the right to use all these public facilities, like swimming pools, libraries, and parks.
• Responsibilities: We have the responsibility to take care of these facilities. When we grow up, it will be our responsibility to pay taxes to keep Hong Kong running smoothly.
Key Takeaway for Section 2
The government collects money (revenue), mostly from taxes, and spends it (expenditure) on public services for everyone. This is protected by the Basic Law.
Section 3: Hong Kong's Busy Businesses (Industries)
Industries are the different types of jobs and businesses that help the economy grow. Hong Kong has many important ones!
Major Industries in Hong Kong
For a long time, Hong Kong's economy has been powered by a few big industries, like banking and finance (handling money), trade (moving goods around the world), and tourism (people visiting our city).
A Big Boost: The Reform and Opening-up
A long time ago, a very important leader of our country, Deng Xiaoping, started a plan called the Reform and Opening-up. This plan opened up China to do business with the rest of the world. Because of Hong Kong's special location and skills, it became a super-helper, connecting China with other countries. This made Hong Kong's economy grow very, very fast!
New and Exciting Industries!
Hong Kong isn't just sticking to the old ways. It's also developing new and exciting industries for the future!
• Innovation and Technology: This is all about creating new things, like smart-city technology, computer apps, and science research.
• Creative Industries: This includes things like making movies, designing cool products, art, and animation.
Did you know?
Your shopping helps the economy! When you and your family buy things, from a delicious egg tart to a new school bag, you are helping businesses. This is called consumption, and it's an important part of the economy!
Key Takeaway for Section 3
Hong Kong's economy is built on major industries, grew quickly thanks to our country's Reform and Opening-up, and is now developing new industries like technology and creative arts.
Section 4: Trading with the World!
Hong Kong is like a giant marketplace, buying and selling things with places all over the globe.
Where Do Our Things Come From?
Look at the label on your T-shirt or your toy car. It was probably made in another place! Because Hong Kong doesn't have many farms or factories, we import (bring in) most of our food and goods from the Mainland and other countries.
Working Together: Hong Kong and the Mainland
Hong Kong has a very important economic relationship with the Mainland. They are like a winning team!
• The Mainland is Hong Kong's biggest trading partner.
• Hong Kong helps businesses from the Mainland connect with the world.
• This close teamwork helps both economies grow.
Big Plans for the Future
Hong Kong is also part of our country's big plans for the future!
• The Guangdong-Hong Kong-Macao Greater Bay Area: This is a plan to link Hong Kong, Macao, and nine cities in Guangdong to create a huge economic powerhouse. It's like forming an economic super-team!
• The Belt and Road Initiative: This is our country's plan to build better connections for trade and business with countries across Asia, Europe, and Africa. Hong Kong, with its skills in finance and business, plays a very important role in this amazing plan.
Key Takeaway for Section 4
Hong Kong trades with the whole world, works very closely with the Mainland, and is a key player in exciting future plans like the Greater Bay Area and the Belt and Road Initiative.