Economic bridge spans the globe
East Coast states have robust export trade with Hong Kong and draw investors, writes Ed Peters
As New York's fashionistas prepared to welcome the forthcoming season's new trends last month, one show from Hong Kong got everybody talking. Four Hong Kong fashion labels - Daydream Nation, Methodology, Placed by Gideon and Injury - paraded their collections for men and women on the runway at Pop 14, one of the most happening locations in the Big Apple.
The show proved to be a hit among buyers and industry insiders - who had converged on the city for New York Fashion Week for spring/summer 2016 - and was another indication of the flourishing cultural and commercial relations between Hong Kong and the eastern seaboard of the United States, in particular New York, New Jersey and Connecticut.
All three states maintain a vigorous export trade. The latest figures show New Jersey shipping US$1.219 billion of goods to Hong Kong last year, principally computers and electronics, but with chemicals also making a strong showing.
New York headed the table, notching up US$10.78 billion, including US$2.9 billion worth of primary metal manufacturing products. Connecticut took third place with US$203 million, made up largely of computer hardware and metal products.
The figures highlight Hong Kong's appetite for American goods, as well as the city's role as the gateway to China. Hong Kong's domestic exports were naturally more modest, with official figures for 2014 showing a total of HK$4.47 billion of goods sent to the US as a whole.
Meanwhile, Hong Kong investors are keeping a careful eye on developments in the eastern US. Just this year, one of Hong Kong's major property conglomerates, Great Eagle Holdings, invested US$25 million in NeueHouse, which is based in New York and specialises in upmarket shared office space.
Great Eagle's investment is seen as part of a plan to provide co-working spaces next to its new lifestyle hotel, which is expected to open by the end of this year.
Like the fashion-conscious hotel that's in the works, stylish leased office space - with amenities such as sports facilities and free beverages - is a growing trend in the region. Communications between Hong Kong and the eastern seaboard are well-established, with Cathay Pacific and American Airlines flying non-stop to and from John F. Kennedy Airport. The Hong Kong Trade Development Council (HKTDC) recently urged corporations on the eastern seaboard and throughout North America to take advantage of Hong Kong's unique economic and geographical qualities.
"Hong Kong [is the] ideal business platform as the centre of economic gravity continues to shift towards Asia," says executive director Margaret Fong. The HKTDC also emphasised that mainland enterprises have been expanding their international presence through Hong Kong, and that they are looking for global partners in hubs such as New Jersey, New York and Connecticut.
Each of the three states has something different to offer as far as business is concerned. New York state's economy is dominated by New York City, which is not just the state's but the country's centre for banking, finance and communication, and home to the stock exchange on Wall Street. Many of the world's largest corporations are located in New York or neighbouring Westchester County; however, there are some significant businesses in upstate New York covering such diverse interests as printing, garment production, ceramics, glass, nanotechnology and photographic equipment. There is also a significant mining industry, including emery, talc, zinc and relatively small amounts of crude oil and natural gas. Agriculture also figures largely in the state's GDP, with wine proving more popular - and portable - than cabbage, of which it is one of the country's largest growers.
The Port of New York and New Jersey - the world's first container port - is one of the busiest on the East Coast, acting as a gateway to one of the most concentrated and affluent consumer markets in the country. The port handled more than 3 million containers last year, a 5 per cent increase over the previous year. New Jersey is known for its pharmaceutical industry, and telecommunications, food processing and a strong agricultural sector. More than 20 Fortune 500 companies are headquartered in New Jersey, including many whose logos are familiar to Hongkongers such as Toys 'R' Us, Campbell Soup, Avis, Prudential Financial, and Bed Bath & Beyond.
The junior member of the East Coast triumvirate, Connecticut, can point to major industries such as jet aircraft engines, helicopters and nuclear submarines. Metalworking, electronics and plastics are among its other major employers, and the state has attracted such heavy hitters as Xerox, GE and Union Carbide, for whom Connecticut is now home. Insurance has long played a part in Connecticut's business life, starting with marine insurance for trading ships plying the coast, and there are currently more than 100 insurance companies operating within state borders.
Despite being separated by the Pacific Ocean and the landmass of the United States, Hong Kong and New York, Connecticut and New Jersey have more than a little in common.
