Wuxi boasts close economic ties with Hong Kong

Wuxi in East China's Jiangsu province boasts close economic ties with Hong Kong, Wuxi Daily reported on July 1.

The two cities' cooperation can be traced back to 1978 when the Fifth Branch of the Wuxi Wireless Plant signed an assembly contract with Hong Kong-based Huadian Co Ltd.

Since then, Wuxi and Hong Kong have increased cooperation, especially after Hong Kong's return to the motherland in 1997.

Hong Kong-invested companies make up the largest proportion of foreign-invested companies in Wuxi. As of May, Hong Kong investors had invested $130.8 billion in 5,640 companies in the city, ranking first among the city's main sources of foreign investment.

Hong Kong has been serving as an important gateway for companies from Chinese mainland looking to invest abroad. As of May, Wuxi companies had invested 328 projects in Hong Kong with a combined contracted amount of $5.68 billion.

According to the Wuxi municipal bureau of commerce, it was trading companies in Wuxi that used to seek development in Hong Kong, and in recent years many Wuxi companies involved in emerging industries have entered the city's market.

With its well-developed outbound transportation network, professional logistics services and free trade policies, Hong Kong also acts as an entrepot for Wuxi's trade, and the city's many manufacturers export products via the city.

In 2021, Wuxi traded $6.32 billion with Hong Kong, up 12.6 percent year-on-year and making it the city's seventh largest trade partner, according to statistics from Wuxi Customs.

With the rapid development of the modern manufacturing industry in Wuxi, its exports to Hong Kong have transformed from labor-intensive products to high-value-added products.

While maintaining close economic ties, the two places have also explored new cooperation opportunities. In October of last year, Wuxi rolled out measures to encourage outstanding talent from Hong Kong and Macao to do internships, work, and live in Wuxi.