Hong Kong, October XX, 2023 – In a move set to bolster economic ties and enhance services trade, the Hong Kong Special Administrative Region (HKSAR) and the Chinese mainland have signed a new agreement under the Closer Economic Partnership Arrangement (CEPA).
John Lee, Chief Executive of the HKSAR, announced on Wednesday that Hong Kong will continue to collaborate with the Chinese mainland to boost the competitiveness of the professional services sector. “This new agreement injects fresh impetus into our economic development and paves the way for high-quality growth,” Lee stated.
The Second Agreement Concerning Amendment to the Mainland and Hong Kong CEPA Agreement on Trade in Services was signed in Hong Kong by Paul Chan, Financial Secretary of the HKSAR government, and Li Yongjie, Deputy International Trade Representative of the Ministry of Commerce.
Since its inception in 2003, CEPA has evolved into a comprehensive free trade agreement encompassing trade in goods and services, investment, and economic and technical cooperation. This latest amendment introduces new liberalization measures across several service sectors where Hong Kong holds competitive advantages, including financial services, construction, testing and certification, telecommunications, motion pictures, television, and tourism.
The liberalization measures are designed to remove or relax restrictions on equity shareholding and business scope for enterprises, ease qualification requirements for Hong Kong professionals, and reduce barriers for Hong Kong’s export of services to the mainland market. These initiatives aim to facilitate Hong Kong service suppliers in establishing enterprises and expanding their businesses on the mainland.
Notably, the agreement brings institutional innovations such as allowing Hong Kong-invested enterprises to adopt Hong Kong law and choose arbitration seated in Hong Kong. These measures support Hong Kong-invested enterprises registered in the pilot municipalities of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), fostering greater legal synergy and business confidence.
“The agreement makes it easier for our professionals to practice on the mainland and enables our quality services to reach a wider market,” Lee emphasized. “It is a testament to our commitment to contribute to and serve the country’s development.”
Some of the new measures will be piloted in Guangdong Province before being extended to other parts of the mainland. The agreement takes effect immediately and will be officially implemented on March 1, 2025.
The enhanced CEPA agreement is expected to open up new avenues for economic collaboration, offering significant opportunities for businesses and professionals alike in Hong Kong and the Chinese mainland.
Reference(s):
John Lee says HK, mainland to enhance services trade competitiveness
cgtn.com
