Hengqin (pictured) is included in the Guangdong pilot FTZ
Guangdong authorities hosted a policy-briefing seminar for Macau entrepreneurs yesterday on the topic of the recently inaugurated Guangdong pilot free-trade zone (FTZ). Visiting officials introduced their preferential policy measures that are expected to deepen trade liberalization and enable regional integration.
Guangdong’s vice governor, Ms Zhao Yufang, stated in the seminar that the establishment of the FTZ was the country’s furthest attempt to accelerate its economic reform and deepen the mainland’s economic cooperation with the SARs. Anticipating new space and new models for development to emerge in the pilot zone, she called for Macau’s entrepreneurs and investors to taste the first slice of pie.
“Our FTZ will explore a deeper degree of opening up to Macau, by taking the use of CEPA [Closer Economic Partnership Arrangement] to the next level,” explained the vice governor, regarding cooperation in the service industries such as in tourism, commerce, cross-border financial services and Chinese medicine. Moreover, she pledged that the pilot zone will be “pushed to its limits to achieve smooth flows of commodity, personnel, capital, and information concerning Macau.”
The Guangdong Pilot FTZ consists of three areas respectively in Guangzhou’s Nansha district, Shenzhen’s Shekou, and Zhuhai’s Hengqin island. After three to five years of reform experiment, these areas –
116.2 square kilometers in total – are expected to become the vanguard of trade liberalization and a key part of the Delta region’s integration.
According to Ms Zhao, the FTZ has attracted about 10,000 enterprises and organizations to register just this year. The administrators have based their work in developing the FTZ on “building an international, market and legal system oriented new business environment; attaining new heights assembling modern industries; and building a new platform for close cooperation between Guangdong, Hong Kong and Macau.”
Ms Zhao explained that the “efficient new business environment” will be built on the basis of “system innovation,” where the systems managing investment and trade aim to be more liberal and convenient, the administration and policies to be more transparent, the supervision reinforced, and the system of rules in line with international standards.
As the FTZ aims to create a gathering place for modern industries, Ms Zhao predicted that Guangdong and the SARs will be able to join forces to build a logistics hub whilst strengthening ties in their seaports and airports.
In response, Chief Executive Chui Sai On recognized that the FTZ’s “innovative policies” which are expected to facilitate cooperation in finance and other areas could “create better development opportunities for Macau’s small and medium sized enterprises (SMEs), professionals and youths.”
“We hope to effectively participate in the Guangdong FTZ’s development,” he declared, adding that the government will promote the FTZ’s preferential policies to its officials and citizens, and set up a dedicated department to keep in close contact with its Guangdong counterparts.
Amongst the Guangdong FTZ’s preferential policies, reform measures in the finance area comprise a significant part, with 50 articles, according to Mr Ni Quanhong from the province’s finance authority.
Mr Ni stressed that “the most important feature that differentiates the Guangdong FTZ from Shanghai and Tianjin’s is that it plays out the card of Hong Kong and Macau in its positioning, emphasizing an integration with them.” Accordingly, enterprises and investors from the SARs have higher access schemes than foreign investors to the FTZ.
Aside from an emphasis on cross-border RMB business, the FTZ encourages Macau and HK companies’ to enter into service industries, such as operating audio-visual production businesses, providing international maritime shipping services, setting up medical institutions, and establishing schools for the children of overseas Chinese staff and expatriates.
“Currently, our FTZ is speeding up to put into place a series of measures for reform, innovation and opening up; and each development project is progressing steadily. I believe in the near future it definitely will become one of the areas in mainland China that has opened up the most, with the best and most dynamic business environment in terms of innovation,” stated Ms Zhao.
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