CEPA The Ideal Pathway For Foreign Firms To Enter China, Says Tsang

by Mary Swire, Tax-News.com, Hong Kong

18 November 2004

Hong Kong’s Secretary for Commerce, Industry and Technology, Mr John Tsang told businesses in Toronto earlier this week that the Closer Economic Partnership Arrangement (CEPA) with China provides an excellent opportunity for foreign firms to enter the Chinese market.

"There is no doubt that we are the pre-eminent two-way platform for international companies wanting to access the China market, as well as for Chinese companies wanting to expand onto the global scene," Mr Tsang told a luncheon hosted by the Toronto Board of Trade.

According to Tsang, evidence of how Hong Kong was benefiting from its “unique position” as a Special Administrative Region of China can be seen in the increasing number of firms setting up regional headquarters and offices in Hong Kong, which has increased by 400 to 3,600 in the past twelve months.

“This helps to give greater access to the Mainland for our business and professionals, as well as further consolidate our position as an international financial centre and capital formation centre for China," he observed.

CEPA offers foreign firms an additional route into the mainland noted Tsang, and he urged Canadian business to take full advantage of the trade liberalisation measures that have removed tariffs and various other barriers to trade between China and the SAR.

“Locally incorporated overseas suppliers who satisfy the Hong Kong service supplier criteria will also enjoy the same benefits as Hong Kong companies," he told the gathering.

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