CEPA upgrading helps HK's integration into B&R Initiative
The Chinese mainland is planning to upgrade its economic partnership with Hong Kong, according to the Ministry of Commerce.
The two sides signed a Closer Economic Partnership Agreement in June 2003 in Hong Kong, and four subsidiary agreements of CEPA on commodity, service and investment trade and economic technology cooperation in 2015 and 2017.
The ministry said CEPA and the subsidiary agreements form a framework for a high-level free trade agreement covering almost all economic and trade cooperation between the two sides under the "one country, two systems"principle.
The Economic Technology Cooperation Agreement involves Beijing creating institutional conditions to support Hong Kong’s integration into the Belt and Road Initiative.
The ministry said the mainland and Hong Kong will strengthen information exchanges, support Hong Kong enterprises to explore markets along the Belt and Road routes, and encourage Hong Kong to host or take part in forums and activities on Belt and Road Initiative.
According to the central government's 13th Five-Year Plan (2016-2020), the mainland will further open up to Hong Kong and upgrade the CEPA.
The Hong Kong Special Administrative Region government estimates that, in the first five years after CEPA was implemented, it created 54,700 jobs.
The statistics from the Ministry of Commerce show that by February 2017 the mainland had imported US$10.53 billion worth of goods from Hong Kong under the CEPA, which saves Hong Kong 5.85 billion yuan (US$868 million) in tariffs.
Since the Service Trade Agreement was signed, the mainland has opened 153 service industries to Hong Kong, involving 95.6 percent of the service trade sectors listed by the World Trade Organization.
CEPA has also deepened financial cooperation, consolidating Hong Kong's position and competence as an international financial center. The overall asset holdings of Hong Kong's businesses in the mainland have increased from 107.7 billion yuan to 1.14 trillion yuan since enactment.
