Qianhai urged to offer HK firms 'national treatment'

    Updated: 2014-11-08 07:43

    By Zhou Mo in Shenzhen(HK Edition)

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    Qianhai urged to offer HK firms 'national treatment'

    Shenzhen's Qianhai special economic zone can play an active role in liberalizing trade in services between the mainland and Hong Kong by taking preferential measures to Hong Kong enterprises and professionals, a Hong Kong expert said Friday.

    Although the central government is pushing for a full opening up of trade in services between the mainland and Hong Kong, the process is fraught with difficulties, Fang Zhou, director of the One Country Two Systems Research Institute, told a forum entitled "Special Economic Zones: The Status and Role of Reform and Innovation in a New Age."

    "Except for a handful of areas involving national safety and ideology, Qianhai can make a breakthrough in liberalizing trade in services by giving Hong Kong enterprises registered in the zone pre-establishment national treatment and recognizing professional qualifications of Hong Kong talents directly under the framework of CEPA (Closer Economic Partnership Arrangement)," Fang said at the forum held in Shenzhen.

    "By this means, Qianhai also broadens the market space for Hong Kong's small-and medium-sized enterprises, capital and professionals," he said.

    Fang pointed out that Hong Kong is negotiating with various countries on a trade in services agreement, which aims to formulate new rules for global trade in services. Qianhai could make the main principles established through negotiations applicable to the zone in order to connect closely with Hong Kong's trade in services, he suggested.

    "If the main principles could be applied to Qianhai, it will develop a different mode from the Shanghai Free Trade Zone and explore a new path for the country's deepening reform and opening up," he said.

    For Shenzhen as a whole, the city is also experiencing challenges with manufacturing costs continuing to rise. Chan Man-hung, director of the China Business Center at The Hong Kong Polytechnic University, said it seems that Shenzhen is going towards a structure in which finance and real estate play a leading role. This, he said, is not ideal as finance and real estate are two leading industries in Hong Kong.

    However, Le Zheng, vice-secretary general of the Shenzhen Municipal Committee, dismissed such concerns. "Shenzhen will take a different path from Hong Kong and will not develop finance and real estate as its leading industries. Shenzhen will stand out by its innovation capability in the future."

    Fang added that the two cities can take advantage of each other's strengths and bring benefits to the whole region. "Shenzhen has a strong basis in the high-tech industry. If Hong Kong's advantages in finance and legal system can be applied to Shenzhen, it will help form a diversified industry pattern for the whole region," he said.

    sally@chinadailyhk.com

    (HK Edition 11/08/2014 page10)

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