Page 118 - 2019 Special Report on the State of Business in South China
P. 118
trade in services. The Investment Agreement will be bigger than the Loop (Area A) and is reserved for further
implemented from 1 January 2018, with the Ecotech development. Another one is the Shenzhen Innovation
Agreement taking immediate effect. and Technology Park located in the adjacent area of
the Loop on Shenzhen side (Area C) with a total area of
Starting from January 1, 2018, Hong Kong companies 167 hectares. Both cities agreed to seek stronger policy
will gain explicit protection in respect of their Mainland support from the Central Government to work on the
investments in non-services sectors, e.g. manufacturing, “Shenzhen/Hong Kong Technology and Innovation
mining, and asset investment. With the treatment, Hong Cooperation Zone”, which will create cluster and synergy
Kong investments will be treated on par with Mainland effects. The three areas encompass a total area of 426
investments, except for industries on the negative hectares, a similar size to the Hsinchu Science Park in
list. There are 26 restrictive measures on the negative Taiwan. It will render sufficient spaces to be developed
list, including petroleum and natural gas exploitation, into a global I&T hub.
shipbuilding, aircraft manufacturing and Chinese
medicine production. The agreement also gives most- This is a new mode of collaboration between Hong
favored treatment to Hong Kong investments to ensure Kong and the Mainland. First, Shenzhen confirmed that
that they are not worse off than investments from other while Hong Kong will be responsible for funding and
countries in these industries. A new dispute resolution infrastructure building, Shenzhen will jointly develop the
mechanism will also be implemented. Park through a joint task force. Second, Hong Kong will
facilitate easy entry of designated persons to the Park
The Ecotech Agreement sets a direction for closer through special permission, making immigration clearance
future cooperation between Hong Kong and the more convenient. In the future, Hong Kong may also build
Mainland. It has three major highlights: 1) Support Hong a bridge crossing the Shenzhen River to facilitate the
Kong’s participation in the Belt and Road Initiative (BRI); movement of the Mainlan talents and companies.
2) Promotes economic cooperation in the Greater Bay
Area; and 3) Consolidates prior CEPA provisions to offer
new opportunities for Hong Kong’s professional services
providers. In total, 12 areas of cooperation activities are
listed under the Ecotech Agreement.
Special Economic Zones
The Lok Ma Chau Loop (an area that lies south of
Shenzhen river and near Lok Ma Chau control point in Hong
Kong) has been earmarked in March 2017 to be developed
into the Hong Kong/Shenzhen Innovation and Technology
Park. It followed a Memorandum of Understanding that
was signed by the Hong Kong and Shenzhen Government
in January 2017 for cross-border collaboration.
At 87 hectares, it is anticipated to be the largest
innovation and technology platform ever established
in the history of Hong Kong and acts as a key base for
co-operation in innovation and technology research
to attract top-tier enterprises, research institutions and
higher education institutes from Hong Kong, Mainland
cities and the rest of the world.
More importantly, the Park has two major connecting
areas: One is the adjoining area of the Loop on Hong
Kong side with 182 hectares of land, designated as
Area B in the development plan. This area is two times
118
implemented from 1 January 2018, with the Ecotech development. Another one is the Shenzhen Innovation
Agreement taking immediate effect. and Technology Park located in the adjacent area of
the Loop on Shenzhen side (Area C) with a total area of
Starting from January 1, 2018, Hong Kong companies 167 hectares. Both cities agreed to seek stronger policy
will gain explicit protection in respect of their Mainland support from the Central Government to work on the
investments in non-services sectors, e.g. manufacturing, “Shenzhen/Hong Kong Technology and Innovation
mining, and asset investment. With the treatment, Hong Cooperation Zone”, which will create cluster and synergy
Kong investments will be treated on par with Mainland effects. The three areas encompass a total area of 426
investments, except for industries on the negative hectares, a similar size to the Hsinchu Science Park in
list. There are 26 restrictive measures on the negative Taiwan. It will render sufficient spaces to be developed
list, including petroleum and natural gas exploitation, into a global I&T hub.
shipbuilding, aircraft manufacturing and Chinese
medicine production. The agreement also gives most- This is a new mode of collaboration between Hong
favored treatment to Hong Kong investments to ensure Kong and the Mainland. First, Shenzhen confirmed that
that they are not worse off than investments from other while Hong Kong will be responsible for funding and
countries in these industries. A new dispute resolution infrastructure building, Shenzhen will jointly develop the
mechanism will also be implemented. Park through a joint task force. Second, Hong Kong will
facilitate easy entry of designated persons to the Park
The Ecotech Agreement sets a direction for closer through special permission, making immigration clearance
future cooperation between Hong Kong and the more convenient. In the future, Hong Kong may also build
Mainland. It has three major highlights: 1) Support Hong a bridge crossing the Shenzhen River to facilitate the
Kong’s participation in the Belt and Road Initiative (BRI); movement of the Mainlan talents and companies.
2) Promotes economic cooperation in the Greater Bay
Area; and 3) Consolidates prior CEPA provisions to offer
new opportunities for Hong Kong’s professional services
providers. In total, 12 areas of cooperation activities are
listed under the Ecotech Agreement.
Special Economic Zones
The Lok Ma Chau Loop (an area that lies south of
Shenzhen river and near Lok Ma Chau control point in Hong
Kong) has been earmarked in March 2017 to be developed
into the Hong Kong/Shenzhen Innovation and Technology
Park. It followed a Memorandum of Understanding that
was signed by the Hong Kong and Shenzhen Government
in January 2017 for cross-border collaboration.
At 87 hectares, it is anticipated to be the largest
innovation and technology platform ever established
in the history of Hong Kong and acts as a key base for
co-operation in innovation and technology research
to attract top-tier enterprises, research institutions and
higher education institutes from Hong Kong, Mainland
cities and the rest of the world.
More importantly, the Park has two major connecting
areas: One is the adjoining area of the Loop on Hong
Kong side with 182 hectares of land, designated as
Area B in the development plan. This area is two times
118
