 New
extensions to the Closer Economic Partnership Arrangement (CEPA),
the free-trade pact between Hong Kong and China, are opening up
more opportunities for Canadian businesses keen to establish or
further their presence in Mainland China.
Since its signing, CEPA grants easier access to the China market
for Hong Kong-made products and Hong Kong-based service companies.
Canadian entrepreneurs have been quick to see that outsourcing to,
or partnering with a CEPA-qualified manufacturer or service
provider in Hong Kong presents them with a fast-track approach to
the burgeoning Mainland market.
With CEPA now covering 40 service sectors, the economic benefits
are available to Canadian companies engaged in a wide range of
activities, such as conventions and exhibitions, banking,
construction, social services, tourism, accounting and medical and
dental services.
 The
new Supplement V signed this July added two new sectors: services
incidental to mining on a contractual joint venture basis
(confined to exploration of oil and natural gas only), and related
scientific and technical consulting services (prospecting and
surveying services for iron, copper and manganese) on a wholly
owned, equity joint venture or contractual joint venture basis.
In banking, any Mainland-incorporated banking institution
established by a Hong Kong bank will be allowed to locate its data
centre in Hong Kong, subject to fulfillment of certain
requirements.
In construction and related engineering services, Hong Kong
professionals obtaining the Mainland’s registered Urban Planner or
Supervision Engineer qualification will be allowed to register/practise
in Guangdong regardless of whether they are registered
practitioners in Hong Kong or not. Restrictions on the proportion
of the total capital contributed by the Mainland partners in
setting up construction and engineering design enterprises in the
form of an equity joint venture or contractual joint venture on
the Mainland will be removed.
In accounting, the validity period of the “Provisional Licence to
Perform Audit-related Services”, applied for by Hong Kong
accounting firms for the purpose of conducting auditing business
on a temporary basis on the Mainland, will be extended from two to
five years. Dedicated examination centres in Hong Kong, Shenzhen
and Dongguan will be set up for Hong Kong residents to sit the
Mainland’s accounting qualification examinations.
Hong Kong and Guangdong will also implement a package of
liberalization and facilitation measures on an early and pilot
basis to enhance mutual economic and trade co-operation.
All the services liberalization measures will come into force on
January 1, 2009.
The new package of CEPA liberalization measures and the measures
to deepen economic and trade co-operation between Hong Kong and
Guangdong would open up more opportunities for Hong Kong traders
who wish to enter the Mainland market, capitalize on Hong Kong’s
advantages in tapping the Mainland market, and support the
development of service industries on the Mainland in response to
China’s 11th Five-year Plan.
The CEPA was first signed 2003. Under CEPA, the Mainland agrees to
give all products of Hong Kong origin tariff free treatment if
they meet the CEPA rules of origin. Details on CEPA including the
newly agreed liberalization and co-operation measures are
available on the Trade and Industry Department’ CEPA dedicated
website. [www.tid.gov.hk/english/cepa/index.html]. |
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