A new bilateral civil aviation agreement gives U.S. air carriers important new rights. However, the agreement does not permit codesharing or allow U.S. carriers new fifth freedom passenger rights to carry passengers beyond Hong Kong. These factors will limit expansion of U.S. passenger carriers in the Hong Kong market. Foreign law firms are barred from hiring local lawyers to advise clients on Hong Kong law, even though Hong Kong firms can hire foreign lawyers to advise clients on foreign law. Since 1994, these banks have been allowed to open a regional and a back office at separate sites.
Foreign banks can acquire local banks that have unlimited branching rights.
The Hong Kong government neither protects nor directly subsidizes manufacturers. It does not offer exporters preferential financing, special tax or duty exemptions on imported inputs, resource discounts, or discounted exchange rates. The Trade Development Council, a quasi-governmental statutory organization, engages in export promotion activities and promotes Hong Kong as a hub for trade services. The Hong Kong Export Credit and Insurance Corporation provides insurance protection to exporters. With respect to the legislative arena and international conventions, Hong Kong's framework is world class.