In the midst of a rapidly changing global economic landscape, China's regional development strategies are playing an increasingly crucial role. The Third Plenary Session of the 20th Central Committee of the Communist Party of China emphasized leveraging the unique institutional advantages of "One Country, Two Systems" to enhance mechanisms that enable Macao to better participate in the country's opening-up process.
The policy of "One Country, Two Systems" grants the Macao Special Administrative Region (SAR) a high degree of autonomy, allowing it to maintain its financial systems while fully utilizing the vast market and resources of the Chinese mainland. This foundation has become a key driver for Macao's economic development and has established a solid framework for Guangdong-Macao economic integration.
The Hengqin Guangdong-Macao In-Depth Cooperation Zone stands at the forefront of this integration, serving as a catalyst for Macao's economic growth and industrial upgrading. The zone benefits from a series of special policies that act like powerful magnets, attracting significant capital, cutting-edge technology, and high-quality talent.
For instance, after implementing enclosed operations, the scope of entities and goods eligible for tax exemption or bonded policies through the "first-line" imports has significantly expanded. Goods that include imported materials and have a processing value-added of 30 percent or more are exempted from import tariffs when entering the mainland market through the "second-line."
This measure has substantially reduced operating costs for enterprises, greatly enhancing the zone's appeal to various businesses, particularly in manufacturing. As a result, there has been a surge of capital flowing into the cooperation zone. These policy innovations reflect a deep consideration of Macao's special status and development needs under the "One Country, Two Systems" framework, demonstrating the flexibility and adaptability of the system.
The Hengqin Cooperation Zone has strategically focused on four key industrial areas: technology research and development along with high-end manufacturing; traditional Chinese medicine and other Macao characteristic brand industries; cultural tourism, exhibitions, and commerce; and finance. This approach aligns closely with Macao's strategy for moderate diversification and synergistic growth.
Reference(s):
Hengqin Guangdong-Macao cooperation zone: New economic horizons
cgtn.com
