Tokyo is on a charm offensive, hoping to lure firms in Hong Kong spooked by protests and a controversial security law imposed by China. But the city is proving a tough sell.
There are also a number of more theoretical incentives being floated, including tax breaks, streamlined bureaucracy, and even a special economic zone like Shenzhen, China's Silicon Valley. For a start, Japan's income taxes are sky high, comparatively, topping out at 45% against Singapore's 22% and Hong Kong's 17%.
Japan's particularly strict approach to border control during the pandemic – for months foreign residents were not allowed to return even as Japanese citizens did – has been seen by some as"discrimination" and could also be off-putting for tentative transplants, added Mroczek.Australia has announced new visa opportunities for Hong Kong students and entrepreneurs, and officials have said they will be"very proactive" in encouraging businesses to relocate.
"I wouldn't expect big firms to announce that they are pulling out of Hong Kong completely," Mark Williams, chief Asia economist at Capital Economics, told AFP.