Mainland & HK: Closer economic ties

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In 2003, the Chinese mainland and Hong Kong Special Administrative Region signed the Closer Economic Partnership Arrangement, also known as CEPA. The agreement has functioned as a main driver for Hong Kong's economy over the past years.

Six years of development. A bunch of remarkable figures reflect CEPA's positive role in boosting Hong Kong's economy as well as trade between Hong Kong and the Chinese mainland.

During the past six years, Hong Kong's GDP has maintained an annual growth rate of over six percent. Its stock value rises 13.4 percent annually. Total volume of retail sales of consumption annually surged 18.4 percent.

The mainland has imposed zero-tariff on items of Hong Kong origin since CEPA was signed. So far, the mainland has opened 42 service fields including finance, law, and accounting. It also provided 43-thousand job opportunities for Hong Kong residents.

Tam Wai Yee, Asst director-general of Trade & Industry Dept., HK SAR, said, "The agreement consolidates Hong Kong society's confidence in its economy. It also provides a platform for deepening cooperation between Hong Kong and the mainland."

In a move to support Hong Kong's combat against the global financial crisis, the Chinese government has decided to bring forward the implementation date of CEPA Supplement 6 to October the 1st.

The commerce ministry has also pledged to make full use of CEPA to accelerate free flow of cargo, people and capital between the mainland and Hong Kong. It has vowed to combine advantages of the two sides to enhance their companies' global competitiveness.