Trade continues to grow stronger
Hong Kong's symbiotic relationship with the United States stretches back a long way. American merchants were among the first to start trading in Hong Kong in the wake of Britain hoisting the Union Jack in 1841, and Chinese miners joined the California gold rush at the end of that decade in the thousands, many of them prospering. Since then, the exchanges of people and goods have strengthened the ties across the Pacific Ocean.
Hong Kong's symbiotic relationship with the United States stretches back a long way. American merchants were among the first to start trading in Hong Kong in the wake of Britain hoisting the Union Jack in 1841, and Chinese miners joined the California gold rush at the end of that decade in the thousands, many of them prospering. Since then, the exchanges of people and goods have strengthened the ties across the Pacific Ocean.
And trade continues to be one of the most important links. More than 8 per cent of Hong Kong's domestic exports, worth more than HK$55 billion annually, are bound for the US. Similarly, just over 9 per cent of the city's re-exports, which last year were valued at a total of HK$3.6 trillion, are shipped stateside. Fewer goods flow in the opposite direction, however, as US education, especially at the higher seats of learning, continues to be highly valued by Hong Kong parents who send their offspring overseas in substantial numbers.
From Hong Kong's point of view, trading with the US makes sense, as it is the world's largest national economy, accounting for around 22 per cent of the global gross domestic product, which at the end of the first quarter of 2015 was estimated to be in excess of US$17 trillion.
While Hong Kong's currency is pegged to the US dollar, the greenback is the currency most used in international transactions and is the world's premier reserve currency. It's used as the official currency by several countries, including Ecuador and East Timor, and in many others it is the cash of choice. The US enjoys a mixed economy and has maintained a stable overall GDP growth rate, an unemployment rate that remains moderate, and exceptionally high levels of research and capital investment. Asia is one of its largest trading partners, with China, Japan and South Korea occupying pre-eminent positions, while its other most significant trading countries are Canada, Mexico and Germany.
Part of the United States' economic predominance can be traced to the country's plentiful natural resources, which go hand-in-hand with a well-developed infrastructure and high levels of productivity. Long associated with the concept of a land of plenty, Americans have the highest average household income and employee income among Organisation for Economic Co-operation and Development nations, and the US has been the world's largest national economy since the end of the 19th century.
The nation is as rich in mineral resources as it is in fertile soil, and it is fortunate to have a generally moderate climate. It also has extensive coastlines on both the Atlantic and Pacific oceans, and on the Gulf of Mexico. Rivers flow from far within the continent, and on the US border with Canada, lakes Superior, Huron, Michigan, Ontario and Erie - the Great Lakes, which span 246,000 square kilometres to make up the largest body of fresh water on the planet - provide additional shipping access. These extensive waterways have helped shape the country's economic growth over the years.
Superlatives seem to naturally attach themselves to the US. It is the world's third-largest producer of oil and natural gas, the second-largest trading nation and the second-largest manufacturer, representing a fifth of the global manufacturing output. Out of the world's 500 largest companies, 128 are headquartered in the US, including Wal-Mart, ExxonMobil and Chevron. Today, it is home to more than 29 million small businesses, one-third of the world's millionaires, and nearly half of the world's billionaires.
Ever since its emergence as an independent nation in 1776, the United States has encouraged science and innovation. As a result, it has seen many inventions which are taken for granted in the 21st century, such as the aeroplane, the internet, microchips, lasers, cell phones, refrigerators, e-mail, microwaves, personal computers, LCD and LED technology, air conditioning, assembly lines, supermarkets, bar codes and automated teller machines.
While Hong Kong's Hang Seng index is markedly robust, it works in parallel with the US financial markets, which are among the world's largest and most influential, led by the New York Stock Exchange. Foreign investments in the US have passed the US$2 trillion mark, while American investments in foreign countries are rated in excess of US$3.3 trillion.
The US economy heads international rankings in venture capital as well as research and development funding. Consumer spending made up nearly three-quarters of the economy in 2013, and the country remains the largest consumer market in the world, with American households spending five times more than their Japanese counterparts. The labour market has attracted immigrants from all over the world - Hong Kong and China being notable contributors - and its net migration rate is among the highest in the world.
Though vastly different in size, Hong Kong and the United States share a dedication to doing business, an admiration for entrepreneurship, and a commitment to free trade - qualities which have seen both Pacific Ocean "neighbours" blossom and flourish.