Pros and Cons

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It is difficult for Hong Kong entrepreneurs to set up businesses in mainland China
For	Against
Conducting market research and identifying market sectors is extremely difficult. Markets are subject to sudden changes in the government’s economic growth policy. Infrastructure is less developed than in U.S., making transportation a challenge. Hong Kong entrepreneurs will find it difficult to adapt to the completely different business environment of mainland China Multinationals often must compete against local players with lower cost operations and lower prices. China has no nationwide credit database, so it is difficult to assess consumers’ credit-worthiness. China is undergoing rapid social and economic change; a widening disparity between rich and poor could cause significant upheaval. The diversity of the Chinese market is significant, requiring a variety of products to meet segmented needs.	many businesses in the mainland have been set up by Hong Kong entrepreneurs There are problems of China's policy on intellectual property protection mainland China has cheap labor and resources there exists no communication problem for Hong Kong entrepreneurs to set up businesses in mainland China

many businesses in the mainland have been set up by Hong Kong entrepreneurs
For	Against
Hong Kong businesses invest a lot in the mainland: HK$130.3 billion in 2005 80,000 Hong Kong-linked companies employ 11 million people in the Pearl River Delta and Guangdong	quantity is not equal to quality.

quantity is not equal to quality.
For	Against
	quality is irrelevant, the discussion is about setting up businesses, not how good they are

Hong Kong entrepreneurs will find it difficult to adapt to the completely different business environment of mainland China
For	Against
Hong Kong and mainland China have different legal systems Hong Kong people and Mainland Chinese have different working philosophies The difference of culture between Hong Kong and China compared to the long established laissez-faire market of Hong Kong, China's market, which is in a sense less mature, is embedded with more restrictions

Hong Kong people and Mainland Chinese have different working philosophies
For	Against
Mainland workers do their work in a more straight forward way, but Hong Kong workers are adaptable to changes

The difference of culture between Hong Kong and China
For	Against
Chinese are more focused on Guan Xi development while western culture focuses on business first

compared to the long established laissez-faire market of Hong Kong, China's market, which is in a sense less mature, is embedded with more restrictions
For	Against
	with Deng Xiaoping's Open Policy and China's subsequent WTO entry, the China's market will be more accessible to Hong Kong as well as international businessmen

with Deng Xiaoping's Open Policy and China's subsequent WTO entry, the China's market will be more accessible to Hong Kong as well as international businessmen
For	Against
China has provided quite a lot of conveniences to Hong Kong, for example, CEPA, which benefits both the mainland and Hong Kong.

China has provided quite a lot of conveniences to Hong Kong, for example, CEPA, which benefits both the mainland and Hong Kong.
For	Against
	The advantages that provided are fading out since the WTO keeps forcing China to open up its market

There are problems of China's policy on intellectual property protection
For	Against
The business might end up losing profit because of pirated products

mainland China has cheap labor and resources
For	Against
	They lack management skills

They lack management skills
For	Against
It costs a lot to provide them with training

there exists no communication problem for Hong Kong entrepreneurs to set up businesses in mainland China
For	Against
Hong Kong people and mainland Chinese speak the same language

Hong Kong people and mainland Chinese speak the same language
For	Against
	Cantonese and Mandarin speakers cannot understand each other unless one has learned the other language

China is undergoing rapid social and economic change; a widening disparity between rich and poor could cause significant upheaval.
For	Against
	China's income gap is similar to the USA's, but there is no social upheaval there

The diversity of the Chinese market is significant, requiring a variety of products to meet segmented needs.
For	Against
	HK entrepreneurs understand market segmentation HK-run businesses can sell to niche markets