Factors choked foreign trade businesses IBUonline is a B2B foreign trade platform which has helped many China

suppliers and international buyers to complete foreign trade. IBU has conducted a survey on SMEs in HK and knew their problems in trade. Larger companies like multi-national corporations, do not face the challenges confronting Hong Kong SMEs when they enter the PRD market, since they usually have the funds and resources to compete there. In recent years, Hong Kong SMEs have been facing untold challenges with the relocation of many manufacturing industries seeking low rents and cheap labor, moving out of south China to other neighboring countries like Vietnam, Myanmar, Indonesia and Thailand, as well as to interior areas of western China. With the onslaught of the financial crisis in mid-2008, thousands of SMEs have, in parallel, closed down. Many entrepreneurs prefer to retire or close their businesses rather than to continue losing ventures. Other factors choking businesses include a 50-year-old Hong Kong law. Primarily established to control imports and exports, the law was subsequently used to control transshipments as the sector grew, and is still in force today. Edward Hui, chief executive officer of DHL Hong Kong, says the government could assist the industry by reviewing this law, which did not reflect transshipment concerns when it was drafted, and so does not have the necessary flexibility for transshipment built in. Although the government agreed to review the Control on Imports and Exports regulation in the past, nothing has been done thus far, Hui says. He also notes that the upward trend in operating costs was at its peak by the end of 2012, based on the indices of payroll per person by industry, in transportation, storage, postal and courier services between 2002 and 2012. IBU thinks that many foreign trade companies will be affected by transportation, storage, postal and courier services. IBU is trying to integrate services on the platform for those traders.