CEPA benefits both mainland, HK

cctv.com 03-12-2004 14:46

For the past three months, since the mainland and the Hong Kong Special Administrative Region established the Closer Economic Partnership Arrangement, CEPA has played an important role in promoting economic progress for both sides.

CEPA, an open free trade pact, was put into effect from New Year's Day. The agreement aims to give Hong Kong new competitive advantages, attract more overseas direct investment for the mainland, and help the Chinese mainland obtain more regulatory experience. The zero-tariff agreement is in its initial stage. And it only covers the 3 areas, comprising commodities, services, and trade and investment facilitation.

But Hong Kong residents say they have already seen signs of mutual benefit.

Sze Cheung-Pang, CPPCC Member from Hong Kong, said, "CEPA not only helps Hong Kong, but also professionals as well as cities on the mainland. Because this is mutually beneficial. The CEPA agreement is to encourage our professionals and investors to come to the mainland on favorable terms. In return, mainland professionals and enterprises can also go to Hong Kong."

In 2003, Hong Kong's economy witnessed 3 percent growth. And its GDP is expected to increase by 6 percent this year. Analysts say CEPA will play a vital role in boosting healthy economic growth, because it helps Hong Kong open the door to a market of 1.3 billion people.

But some business insiders say the long-term impact of CEPA will be to strengthen the competitive ability for both sides in the global market.

Eddy S.H. Li, CPPCC Member & President of Hong Kong Economic & Trade Association, said, "China has already entered the WTO. I think the market will step by step be opened. But if Hong Kong people come into this market, they can create joint ventures and do business here. And in the future maybe we can together compete with foreign companies."

CEPA is the result of an inevitable trend of China's economic development over the past decades. As a product of the mainland's opening-up process, the agreement is also seen as a practical application of the "One China, Two Systems" principle.

CEPA works as a bridge linking the mainland and Hong Kong's economy. It helps diversify the mainland's commodities. And it also promotes Hong Kong's economic recovery. With the Central Government's commitment to further support CEPA, more professionals and regions are expected to benefit from the favorable policy.

Editor:Zhang  Source:CCTV.com