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Hong Kong's Government
is currently seeking to encourage the development
of greater e-commerce links with the Chinese
mainland, especially since the launch of the
CEPA programme aimed at increasing trade links.
The city in 1998
put forward its the "Digital 21" policy
initiative. Digital 21 was positioned as a "comprehensive
strategy" to enhance and promote Hong Kong's
information infrastructure and services, and
was overseen by the Information Technology and
Broadcasting Bureau (ITBB).
With
a sophisticated telecommunications infrastructure,
Hong Kong offers access to broadband connectivity
to more than 90% of all households. The take
up of broadband services got off to a slow start,
but a boom in broadband access took off in 2003.
By early 2004, there were about 1.5 million
broadband subscribers, representing about 35%
of the total Internet subscriber base.
PCCW's
( Pacific Century CyberWorks) Cyberport set
out to transform Hong Kong's Internet infrastructure.
The Cyberport's goal was to provide the office
and residential space for high tech ventures
and their employees; the government provided
one of the last undeveloped parcels of land
on the Hong Kong island for the Cyberport in
return for a share in the venture.
However,
the Cyberport was unlucky with its timing, and
when the first phase opened in 2002 only 80%
of it quickly let, to five tenants including
Microsoft.
Hong Kong, with
its low taxes and its established position as
a trade hub for Asia, has sought, in common
with many other jurisdictions, to become a centre
of E-Commerce development.
However, Hong Kong's
fiscal structure, which taxes local source income,
has meant that e-commerce operations in the
SAR have often been advised to avoid entering
contracts locally, which in turn might mean
that servers would have to be located elsewhere.
On the other hand,
there is no doubt that Hong Kong's legal regime
is ideal for e-commerce, and its professional
support services are excellent.
Geographically
Hong Kong is well-placed both as a stepping
stone into Asia and at a crossroads of the world's
communications network - though such advantages
are probably more psychological than practical.
In theory at least, cyberspace knows no boundaries
and the global nature of E-commerce allows it
to be conducted anywhere.
This section of
the Hong Kong site explores how e-commerce and
e-business operations can take full use of the
advantages the SAR has to offer.
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