Page 68 - 2019 Special Report on the State of Business in South China
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According to the Plan, by 2020, the GDFTZ shall laws of the Mainland apply”; “allow development
develop itself into a free trade zone that supports projects wholly-owned or controlled by Hong Kong
investment and trade liberalization, attracts various investors to adopt Hong Kong’s management mode
innovation elements, creates facilitated business for engineering construction on a pilot basis”; and
environment and gives prominence to the driving “manage airlines from and to Hong Kong and Macao
function in alignment with general rules for international within the GDFTZ as special domestic airlines.”
investment and trade. The Plan also specifies the
importance to strengthen the joint actions between - The Plan also proposes to adopt a new mode
the pilot free trade zone reform and the reform in of inspection and customs clearance in the Zhuhai-
Guangdong Province, implement various pilot reform Macao port, whereby “cooperative inspections will
programs within the Pearl River Delta region in all be carried out on a one-time basis” and “entry will be
aspects if conditions permit or promote the same in inspected while exit will be monitored”. The new mode
Guangdong Province. is a further innovation in the existing modes for the
Hong Kong-Zhuhai-Macao Bridge and Guangzhou-
Therefore, the General Affairs Office of China Shenzhen-Hong Kong High-speed Railway.
(Guangdong) Pilot Free Trade Zone (the “General Affairs
Office of GDFTZ”) proposes that the GDFTZ will make II. New breakthroughs in lifting the restrictions on
new breakthroughs and take new measures in the market access.
following four aspects:
The Plan proposes to “dramatically lift the restrictions
I. New breakthroughs in the innovation of in-depth on market access, expand the opening-up of the
cooperation among Guangdong, Hong Kong and Macao. service sector”; “explore ways of applying the new
management mode to domestic investment projects
- The Plan introduces a series of special systems of eligible foreign-invested venture capital enterprises
and arrangements for the practices of professionals and equity investment enterprises”; “abolish special
from Hong Kong and Macao. For example, the administrative limits on the business period of foreign-
Plan will “research ways for financial professionals invested enterprises, except those in special sectors.”
from Hong Kong and Macao who work in the pilot Those proposals indicate that a new negative list for
free trade zone to obtain Mainland practicing foreign investment in the pilot free trade zones will be
qualifications through training programs and tests, released in 2018, allowing the further opening-up for
and deem their practice experiences in Hong Kong foreign capital flowing into advanced manufacturing,
and Macao as having been gained in the Mainland”; finance and other sectors, and that foreign investors
and “research the mode in which professionals (in are encouraged to increase capital injection via equity
such areas as planning, engineer consulting, design, investment, enabling them to enjoy the same treatment
measurement and construction) who have obtained as domestic enterprises.
practicing qualifications in Hong Kong are allowed
to directly practice in development projects wholly- III. New breakthroughs in supporting new modes and
owned or controlled by Hong Kong investors or to new forms of business for international trade.
establish enterprises offering engineering technical
services, in the pilot free trade zone.” The Plan proposes to “explore ways of enabling
the “single window” for international trade to cover a
- The Plan expands the business scope of Hong wider range of fields of the trade in services, including
Kong professional services, and break through technology trade, service outsourcing and maintenance
the system and mechanism obstacles caused service, and gradually enable the export refund
by different administrative rules on professional (exemption) declaration for trade in services to be
services in Guangdong, Hong Kong and Macao. For managed under the “single window” when conditions
example, the Plan will “allow the Mainland lawyers become ripe;” “launch the pilot program on the
serving in partnership law firms jointly owned by inspection, maintenance and re-manufacturing business
partners from the Mainland, Hong Kong and Macao of projects with high technology content and added
located in the GDFTZ to accept and undertake legal value inside and outside the territory of China;” “remove
affairs concerning administrative lawsuits in which the time limits on the bonded warehousing for parallel-
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develop itself into a free trade zone that supports projects wholly-owned or controlled by Hong Kong
investment and trade liberalization, attracts various investors to adopt Hong Kong’s management mode
innovation elements, creates facilitated business for engineering construction on a pilot basis”; and
environment and gives prominence to the driving “manage airlines from and to Hong Kong and Macao
function in alignment with general rules for international within the GDFTZ as special domestic airlines.”
investment and trade. The Plan also specifies the
importance to strengthen the joint actions between - The Plan also proposes to adopt a new mode
the pilot free trade zone reform and the reform in of inspection and customs clearance in the Zhuhai-
Guangdong Province, implement various pilot reform Macao port, whereby “cooperative inspections will
programs within the Pearl River Delta region in all be carried out on a one-time basis” and “entry will be
aspects if conditions permit or promote the same in inspected while exit will be monitored”. The new mode
Guangdong Province. is a further innovation in the existing modes for the
Hong Kong-Zhuhai-Macao Bridge and Guangzhou-
Therefore, the General Affairs Office of China Shenzhen-Hong Kong High-speed Railway.
(Guangdong) Pilot Free Trade Zone (the “General Affairs
Office of GDFTZ”) proposes that the GDFTZ will make II. New breakthroughs in lifting the restrictions on
new breakthroughs and take new measures in the market access.
following four aspects:
The Plan proposes to “dramatically lift the restrictions
I. New breakthroughs in the innovation of in-depth on market access, expand the opening-up of the
cooperation among Guangdong, Hong Kong and Macao. service sector”; “explore ways of applying the new
management mode to domestic investment projects
- The Plan introduces a series of special systems of eligible foreign-invested venture capital enterprises
and arrangements for the practices of professionals and equity investment enterprises”; “abolish special
from Hong Kong and Macao. For example, the administrative limits on the business period of foreign-
Plan will “research ways for financial professionals invested enterprises, except those in special sectors.”
from Hong Kong and Macao who work in the pilot Those proposals indicate that a new negative list for
free trade zone to obtain Mainland practicing foreign investment in the pilot free trade zones will be
qualifications through training programs and tests, released in 2018, allowing the further opening-up for
and deem their practice experiences in Hong Kong foreign capital flowing into advanced manufacturing,
and Macao as having been gained in the Mainland”; finance and other sectors, and that foreign investors
and “research the mode in which professionals (in are encouraged to increase capital injection via equity
such areas as planning, engineer consulting, design, investment, enabling them to enjoy the same treatment
measurement and construction) who have obtained as domestic enterprises.
practicing qualifications in Hong Kong are allowed
to directly practice in development projects wholly- III. New breakthroughs in supporting new modes and
owned or controlled by Hong Kong investors or to new forms of business for international trade.
establish enterprises offering engineering technical
services, in the pilot free trade zone.” The Plan proposes to “explore ways of enabling
the “single window” for international trade to cover a
- The Plan expands the business scope of Hong wider range of fields of the trade in services, including
Kong professional services, and break through technology trade, service outsourcing and maintenance
the system and mechanism obstacles caused service, and gradually enable the export refund
by different administrative rules on professional (exemption) declaration for trade in services to be
services in Guangdong, Hong Kong and Macao. For managed under the “single window” when conditions
example, the Plan will “allow the Mainland lawyers become ripe;” “launch the pilot program on the
serving in partnership law firms jointly owned by inspection, maintenance and re-manufacturing business
partners from the Mainland, Hong Kong and Macao of projects with high technology content and added
located in the GDFTZ to accept and undertake legal value inside and outside the territory of China;” “remove
affairs concerning administrative lawsuits in which the time limits on the bonded warehousing for parallel-
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