There might be certain areas of the economy where this is the case but I haven't seen anything like that since I've been here. I work for a startup financial firm and we have no "local" partners I'm aware of. The regulatory requirements are similar to operating a financial business in the US or UK. The legal system here is based on common law, I'm able to read and understand contracts as well as I can in the states, and I've personally met people who received legal training in the UK and practice in Hong Kong. Frankly, I think the market here is appreciably freer than that in the US given that the taxes are much lower and the infrastructure is on par.