Taiwanese firms can team up with Hong Kong companies when tapping into business opportunities under China’s 12th five-year economic development plan, according to a report by the Hong Kong Trade Development Council.
Such partnerships could help Taiwanese firms avoid wasting time exploring and obtaining intellectual property rights (IPR) protection, according to the report.
One of the goals being formulated under the new five-year plan is to build an energy-saving and eco-friendly society. The start of the plan this year, which coincides with the implementation of the Economic Cooperation Framework Agreement (ECFA), will present huge opportunities for Taiwanese businesses, the report said.
The council advised Taiwanese businesses to take advantage of Hong Kong’s reputable arbitration system to protect their IPR when doing business in China.
Signing contracts with Chinese clients through Hong Kong would allow Taiwanese businesses to enjoy protection under Hong Kong law and use Hong Kong’s arbitration services. They would also benefit from the double taxation avoidance agreement between Hong Kong and China and would be eligible for franchise fee reductions in China, the council said.
In addition, Hong Kong businesses are good at combining their core facilities with non-key parts and components produced in China, and helping their international partners compete in the Chinese market, according to the council.