John Lee, chief executive of China's Hong Kong Special Administrative Region (HKSAR), announced on Wednesday that Hong Kong will continue collaborating with the Chinese mainland to enhance the competitiveness of the professional services sector. This strategic move aims to inject new momentum into Hong Kong's economic development and achieve high-quality growth.
The announcement came following the signing of the Second Agreement Concerning Amendment to the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) on Trade in Services. The signing ceremony was attended 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 that covers trade in goods and services, investment, and economic and technical cooperation. The latest amendment introduces new liberalization measures across key service sectors where Hong Kong holds a competitive edge, including financial services, construction and engineering services, telecommunications, motion pictures, television, and tourism.
These measures aim to remove or relax restrictions on equity shareholding and business scope for enterprise establishment, ease qualification requirements for Hong Kong professionals to practice on the mainland, and facilitate the export of Hong Kong's quality services to the mainland market.
In addition to liberalization, the agreement fosters institutional innovation and enhanced collaboration. It includes provisions such as allowing Hong Kong-invested enterprises to adopt Hong Kong law and choose Hong Kong as the seat for arbitration, thereby providing greater flexibility and support for businesses operating within the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).
John Lee emphasized that these changes will make it easier for Hong Kong service providers to establish and grow their businesses on the mainland, allowing more professionals to obtain the necessary qualifications to practice, and increasing the availability of Hong Kong's high-quality services in the mainland market. These efforts collectively contribute to the broader economic development goals of the country.
Some of the new measures will be piloted in Guangdong Province before being rolled out to other parts of the mainland. The agreement is effective from the date of signing and will be officially implemented on March 1, 2025.
Reference(s):
John Lee says HK, mainland to enhance services trade competitiveness
cgtn.com
