Hong Kong was a dependent territory of the United Kingdom from 1842 until the transfer of sovereignty to the People's Republic of China in 1997.  The Sino-British Joint Declaration and the Basic Law of Hong Kong stipulate that Hong Kong operate with a high degree of autonomy until at least 2047, fifty years after the transfer.  Under the policy of "one country, two systems", the Central People's Government is responsible for the territory's defense and foreign affairs, while Hong Kong maintains its own legal system based on English common law, police force, monetary system, customs policy, immigration policy, and delegates to international organisations and events.

Hong Kong has a free market economy highly dependent on international trade. The territory has become more closely linked to mainland China over the past few years. Even before Hong Kong reverted to Chinese administration on 1 July 1997, it had extensive trade and investment ties with China. Hong Kong's service industry over the past decade has grown rapidly as its manufacturing industry has moved to the mainland. Hong Kong also has stepped up its efforts to gain approval to offer more mainland financial services in a bid to remain competitive with China's growing financial centers. Hong Kong's natural resources are limited, and food and raw materials must be imported. Gross imports and exports (including reexports to and from third countries) each exceed GDP in dollar value. Per capita GDP exceeds that of the four big economies of Western Europe. GDP growth averaged a strong 5% from 1989 to 2006, but Hong Kong suffered two recessions in the past eight years because of the Asian financial crisis in 1997-98 and the global downturn in 2001-02. Although the Severe Acute Respiratory Syndrome (SARS) outbreak in 2003 also battered Hong Kong's economy, a solid rise in exports, a boom in tourism from the mainland because of China's easing of travel restrictions, and a return of consumer confidence resulted in the resumption of strong growth from late 2003 through 2006. Moreover, several large initial public offerings of Chinese companies on the Hong Kong stock exchange since late 2005 have helped to boost Hong Kong's status as a financial hub and have contributed to the improved performance of the market in late 2006.

Hong Kong is an ideal market platform for doing business in Asia, especially Mainland China. Hong Kong is a “free port” with virtually no duties or tariffs. Its strong rule of law and respect for property rights make it an ideal strategic platform for U.S. companies,  specially small- and medium-sized firms, seeking to do business in Asia. Hong Kong partners typically know and have close links to markets in Mainland China and the rest of Asia.  Hong Kong has its own common law, legal system, currency and customs jurisdiction. Hong Kong's financial, marketing and technical expertise, and sophisticated infrastructure, combined with the Mainland’s rapidly developing manufacturing base, create wide-ranging business opportunities. Many Hong Kong manufacturers have moved production to South China’s Pearl River Delta (PRD), with Hong Kong functioning as the region’s services and trade hub. Mainland China is Hong Kong’s largest trading partner, and four thousand Asian and Western of multinational firms with interests in Mainland China have their headquarters in Hong Kong.

Increasing integration with the Mainland: As Hong Kong’s Mainland China market access and opportunities have grown, its higher costs have led to a hollowing out of its manufacturing sector. Mainland rivals present increasing competition, even in sectors where Hong Kong has long been dominant, like container port handling.  Firms are bypassing Hong Kong: Companies that go directly to the Mainland China market without sufficient due diligence, however, often face higher costs and longer delays than if they had first engaged a Hong Kong-based intermediary.

Excellent prospects for U.S. suppliers: Over 20 percent of all Hong Kong Government contracts are awarded to U.S. firms. Leading export sectors for U.S. firms include computer peripherals, plastic materials & resins, electronic components, drugs and pharmaceuticals, environmental technologies, mass transit equipment, landscape architectural services, automotive parts and accessories, safety and security equipment, green building materials, and cosmetics and toiletries.  Major Hong Kong public infrastructure projects include: Hong Kong International Airport Expansion Plan, Kai Tak Airport Redevelopment, Tourism Infrastructure and City Improvement, Disneyland, West Kowloon Cultural District, Port Development, Ocean Park Revamp Plan, Harbor Area Treatment Scheme, the Hong Kong-Macau-Zhuhai Bridge, and the Waste Reduction Project.