“Made in PRD Study/CEPA" Highlight Close Economic Relationship

At a conference entitled "Made in PRD" (Pearl River Delta), organized by the Federation of Hong Kong Industries on July 3, Hong Kong’s Secretary for Commerce, Industry and Technology, Mr Henry Tang, spoke about the strong relationship between the PRD and Hong Kong.

Talking about the gains made by Guangdong and Hong Kong in the past quarter century, Mr Tang said, “The economy of the two places has thrived on a symbiotic relationship." Illustrating the closeness of their trading relationship, Mr Tang cited the 2002 total trade figure of US$47 billion as an example. “This puts Guangdong well above our third largest trading partner, Japan, in terms of the amount of trade." 

Quoting the “Made in PRD" Study, Mr Tang pointed out that Hong Kong investors operate 53,000 factories and employ 10 million workers in Guangdong. Approximately 43% of Hong Kong’s workforce today are engaged in activities that support manufacturing activities in the Greater PRD and the rest of the Mainland. 

Describing the Closer Economic Partnership Arrangement (CEPA) as “a new era in the economic relationship between the Mainland and Hong Kong", Mr Tang said the agreement will open up a wide array of opportunities for Hong Kong’s investors, manufacturers and service providers. 

Mr Tang said the preferential zero tariff regime will increase the competitiveness of Hong Kong products in the PRD and stimulate the demand for imports from Hong Kong, while liberalization in market access in 18 sectors under CEPA permits earlier access to Hong Kong companies and service suppliers to the Mainland market.

“The liberalization measures will formally come into force on 1 January 2004," concluded Mr Tang. “It is now up to the private sector to prepare themselves to seize the tremendous business opportunities that are up for grabs." 


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