Expanded FTA makes city more competitive, says Chan

Staff reporter

The recently expanded free-trade agreement with the mainland has further enhanced Hong Kong's competitiveness as a regional base, Financial Secretary Paul Chan Mo-po said in his weekly blog yesterday.

Last week, the Hong Kong government signed an amendment to the Closer Economic Partnership Arrangement on trade in services with the Ministry of Commerce.

The amendment grants Hong Kong companies in sectors such as film, television, financial services, tourism, telecommunications, construction, and related engineering services easier access to the mainland market.

Effective March 1 next year, the amendment will ease or remove restrictions on shareholding and business scope for establishing enterprises. Additionally, local service providers with less than three years of operating experience will be eligible for CEPA benefits.

These changes will make Hong Kong a more attractive base for foreign enterprises seeking to tap into the mainland market, which will help lure investment and create more jobs in the city, Chan said.

He also revealed that about 16,000 non-Chinese Hong Kong permanent residents have obtained the new five-year, multi-entry travel permit to the mainland as of early October, accounting for a third of all applicants since the scheme was rolled out in July.

The scheme, together with the new CEPA amendments, provides convenience to non-Chinese Hong Kong permanent residents and is expected to encourage more foreigners to choose Hong Kong as their base for accessing the mainland, Chan added.