Australia becomes the latest to lure financial capital and talent out of Hong Kong in response to the newly enacted national security law.
Canberra announced last week that it would be offering assistance to Hong Kongers seeking to leave the city after implementation of the new and controversial law. And this week, Alan Tudge, the country’s minister for population, cities and urban infrastructure, specifically underlined interest in targeting students and the highly talented.
«We’ll be specifically targeting students and the really seriously talented individuals in Hong Kong who will, if you like, be able to contribute to the economy back here,» Tudge explained in a recent television report by «CNBC».
Wooing Finance
Although Tudge did not specify which areas the government was actively pursuing, he shared observations that companies from financial services were seeking to relocate operations to Australia, in addition to media and consultancy.
The government wants to make it more attractive for businesses to set up shop in the country not only by offering visas to secure critical staff – 5-year extensions will be made available for «skilled and graduate visa-holders» with a path to permanent residency in the end – but also providing tax benefits.
At up to 30 percent, Australia’s corporate tax rate is significantly higher than Hong Kong’s 16.5 percent but Tudge said that «boutique financial arrangements» could be offered to individual businesses.
Global Race for Hong Kong Talent
Concerns about the controversial national security law have led businesses and individuals to reconsider their long-term options in Hong Kong. In an attempt to kill two birds with one stone, foreign governments are both responding to the perceived threat to freedoms and also taking the opportunity to acquire top financial talent from the competitive service-oriented hub.
«Australia is an immigrant nation and we’re constantly chasing talent from around the world,» Australia’s Tudge added. «In part, that’s what our reach-out to the super talent in Hong Kong and elsewhere is about.»
Shortly after Beijing enacted the law, Taiwan’s government opened an office dedicated to the migration of Hong Kong individuals and companies in hopes to «attract capital and professionals from Hong Kong to Taiwan, especially talent in the financial industry». Similarly, Japan’s Prime Minister Shinzo Abe also welcomed financial workers in Hong Kong following legislation as part of its ambitions to transform Tokyo into a leading financial center.
