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Print articleChina: CEPA IV
January, 2007 -
The Central Government of the People’s Republic of China (“Mainland”) and the Government of the Hong Kong Special Administrative Region (“Hong Kong”) reached a further understanding regarding the Closer Economic Partnership Arrangement between the Mainland and Hong Kong (“CEPA”) (as discussed in the July 2003 issue of China Legal Update) on 27 June 2006. This supplement, referred to as CEPA IV, further liberalises PRC market access for qualified Hong Kong service suppliers. It follows a pattern of annual updates of CEPA, which was previously supplemented in 2004 and 2005.
Further liberalisations
One of the key features of CEPA is that it gives qualified Hong Kong service providers greater market access on the Mainland in a wide range of sectors. CEPA IV introduces further liberalisation measures in the legal, construction, information technology, convention and exhibition, audiovisual, distribution, tourism and transport sectors and for individually owned stores. Hong Kong barristers are now permitted to become agents in civil litigation cases on the Mainland.
CEPA IV allows Hong Kong permanent residents with Chinese citizenship to set up individually owned retail stores throughout the country and to provide services related to crop cultivation, animal husbandry, aquaculture, technology exchanges and marketing promotion, and computer repair. The establishment of such stores is not required to follow the approval procedures applicable to foreign investment.
Qualified Hong Kong service providers are also permitted to set up wholly foreign-owned enterprises in a wide range of service sectors, including engineering cost consulting, organisation of exhibitions in Hong Kong and Macao, air transport sales agency, road freight transport station (depot) and motor vehicle repair. CEPA IV permits Hong Kong travel agents to establish companies on a wholly-owned or joint venture basis in Guangdong Province to organise group tours to Hong Kong and Macao for Guangdong residents.
IP protection
The two sides have extended their scope of cooperation under CEPA IV to include cooperation in intellectual property protection. The sides will communicate and exchange information relating to intellectual property protection through the Intellectual Property Protection Coordination Centre to be set up in Hong Kong.
Further liberalisations
One of the key features of CEPA is that it gives qualified Hong Kong service providers greater market access on the Mainland in a wide range of sectors. CEPA IV introduces further liberalisation measures in the legal, construction, information technology, convention and exhibition, audiovisual, distribution, tourism and transport sectors and for individually owned stores. Hong Kong barristers are now permitted to become agents in civil litigation cases on the Mainland.
CEPA IV allows Hong Kong permanent residents with Chinese citizenship to set up individually owned retail stores throughout the country and to provide services related to crop cultivation, animal husbandry, aquaculture, technology exchanges and marketing promotion, and computer repair. The establishment of such stores is not required to follow the approval procedures applicable to foreign investment.
Qualified Hong Kong service providers are also permitted to set up wholly foreign-owned enterprises in a wide range of service sectors, including engineering cost consulting, organisation of exhibitions in Hong Kong and Macao, air transport sales agency, road freight transport station (depot) and motor vehicle repair. CEPA IV permits Hong Kong travel agents to establish companies on a wholly-owned or joint venture basis in Guangdong Province to organise group tours to Hong Kong and Macao for Guangdong residents.
IP protection
The two sides have extended their scope of cooperation under CEPA IV to include cooperation in intellectual property protection. The sides will communicate and exchange information relating to intellectual property protection through the Intellectual Property Protection Coordination Centre to be set up in Hong Kong.
