Hong Kong has historically been a favored location for Western companies´ headquarters and expatriate positions. The mix of Chinese and Western culture has made it a good place for families and overall quality of life.

In recent years, though, Hong Kong´s persistent air pollution problem has drawn particular attention because of the city´s increased smog. From 2000 to 2004, the days with visibility under 5 miles steadily grew from 8% to almost 20%. In a marathon on a smoggy day in February 2006, thousands of runners had to receive medical attention and one of them died.

Although Hong Kong has dealt with air pollution for a long time, the current increase is causing new troubles for recruiting and retention of talent in this regional hub. According to a survey published by the American Chamber of Commerce in Hong Kong in August 2006, 39% of polled member executives reported that their firm had difficulty recruiting because of environmental concerns, 55% knew professionals who had declined to take jobs there for the same reason, and 78% knew professionals or their families who were considering leaving. Environmental concerns are especially acute for people who have asthma or children with asthma.
Victor Fung, a government advisor and prominent business figure in Hong Kong, said on August 28th, 2006 that starting last year, pollution had begun to seriously impact investment decisions and hiring ability. A delegation from foreign chambers of commerce also met with Chief Executive Donald Tsang Yam-Kuen, demanding that the government take stronger action against pollution. The rise in air pollution levels is attributed to burgeoning industrial development in neighboring Guangdong province, as well as to the area´s coal-fired power plants.