20th Anniversary of CEPA Signing: Abundant Achievements in Hong Kong | CEPA | Achievements
Beijing, June 29th (Xinhua) - This year marks the 20th anniversary of the signing of arrangements between the mainland, Hong Kong Special Administrative Region, and Macao Special Administrative Region to establish closer economic and trade relations. On the 29th, the head of the Taiwan Hong Kong and Macao Department of the Ministry of Commerce stated that CEPA is a high-level free trade agreement with the characteristics of "one country, two systems" and in compliance with the rules of the World Trade Organization. Over the past 20 years since the implementation of CEPA, the mainland, Hong Kong, and Macao have achieved comprehensive liberalization in the field of goods trade, basic liberalization in the field of service trade, and the establishment of a systematic and diverse protection system in the field of investment. The Hong Kong and Macao regions have embarked on a broad path of complementary advantages and common development with the mainland of China.
Over the past 20 years, CEPA has strengthened economic and trade exchanges and cooperation between mainland China, Hong Kong, and Macau. The person in charge stated that with the implementation of CEPA, the flow of goods, funds and other factors between mainland China, Hong Kong, and Macau will be more efficient and convenient.
From a trade perspective, Hong Kong, Macao, and the mainland are important trading partners for each other. According to statistics from the General Administration of Customs, from 2004 to 2022, the trade volume between the mainland and Hong Kong and Macau increased from 114.51 billion US dollars to 309.74 billion US dollars, an increase of 1.7 times.
In terms of investment, Hong Kong and Macao continue to maintain their position as the largest sources and destinations of overseas investment in the mainland. According to statistics from the Ministry of Commerce, as of May 2023, the mainland has absorbed a total of 1.7 trillion US dollars in funds from Hong Kong and Macau, accounting for 59.8% of the total amount of overseas investment absorbed by the mainland; The stock of non-financial direct investment from the mainland to Hong Kong and Macau is nearly 1.5 trillion US dollars, accounting for nearly 60% of the mainland's outward non-financial direct investment.
For the past 20 years, CEPA has promoted high-level openness. The person in charge introduced that CEPA has taken the lead in implementing a pre admission national treatment and negative list management system for Hong Kong and Macau investors, introducing the international business models of service providers from Hong Kong and Macau to the mainland, conducting dynamic stress tests on the mainland service industry, and conducting beneficial explorations for the opening up of the service industry to the outside world.
For the past 20 years, CEPA has supported the economic development of Hong Kong and Macau. The person in charge said that CEPA has promoted the development of the real economy in Hong Kong and Macau. Under the CEPA, the mainland provides zero tariff policies for manufacturing in Hong Kong and Macau, implements electronic networking of origin to enhance trade convenience, optimizes the origin standards for 95 tax codes of goods, and benefits the local manufacturing industries in Hong Kong and Macau. According to statistics from the General Administration of Customs, as of May 2023, Hong Kong has enjoyed CEPA zero tariff goods worth 115.6 billion yuan, with tariff reductions of 9.44 billion yuan; Macao enjoys a CEPA zero tariff goods worth 1.2 billion yuan, with a tariff reduction of 80.033 million yuan.
CEPA has expanded the development space of the service industry in Hong Kong and Macau. Under the CEPA, the mainland has opened up 153 service sectors to Hong Kong and Macau, accounting for 95.6% of all 160 service trade sectors in the World Trade Organization. According to statistics from the governments of the Hong Kong and Macau Special Administrative Regions, as of the end of May 2023, 4268 Hong Kong and Macau enterprises have applied to invest in mainland China under the preferential conditions of the CEPA.
CEPA has improved the business environment in Hong Kong and Macau. The implementation of CEPA has enhanced the attractiveness of Hong Kong and Macau to overseas enterprises, making them a priority option for multinational corporations to expand their business in mainland China and Asia. According to statistics from the Hong Kong SAR government, from 2003 to June 2022, the total number of regional headquarters and offices established by overseas enterprises in Hong Kong increased from 5414 to 8978.