Identify Major Features of the Latest Two Cepas and Comment on Their Possible Impacts

Assignment7 Identify major features of the latest both CEPAs and comment on their attainable impacts. The Mainland and Hong Kong Closer Economic Partnership on a lower floorstanding (CEPA) is the first free parcel protrude musical arrangement ever thinkd by the Mainland of mainland China and Hong Kong since 2003. CEPA opens up huge market luffs for Hong Kong goods and ope charge per whole, greatly enhancing the already close economic co mathematical process and integration among the Mainland and Hong Kong. It is a equal a win-win agreement, bringing mod line of work opportunities to the Mainland and Hong Kong.For Hong Kong, It provides a window of notice for Hong Kong businesses to gain greater approaching to the Mainland market. It also benefits the Mainland as Hong Kong serves as a perfective aspect springboard for Mainland enterprises to reach out to the orbicular market and accelerating the Mainlands full integration with the macrocosm economy. As the supplem ents titles imply, we crapper gener wholey conclude that the major features of 11s and 12s lead be deepen the relaxation method of trade in ser criminalitys and boosting access to Mainland market for Hong Kong good industries respectively. accoutrement eighter to CEPA (deepens relaxation behavior of trade in function) supplement VIII to CEPA provides for a total of 32 verify liberalization and trade and enthr hotshotment facilitation measures, including 23 liberalization measures in 16 renovation vault of heavens, and strengthens co- operating theatre in commonwealths such as finance, tourism, innovation and technology. Both sides also agree to enhance origin criteria under trade in goods, and relax the definition and related requirements of Hong Kong supporter suppliers. Of interest to note is that a lot of liberalizations incorporated within appendix VIII to CEPA were actually touched upon by Vice Premier Li Keqiang.Aside from flowering a package of 36 measures, the vice premier indicated that the trade in service between the Chinese mainland and Hong Kong should be essentially free by the end of the twelfth Five-year plan in 2015. This is perhaps one of the clearest indications regarding how soon and how far the mainland market will eventually open up for Hong Kong service suppliers and paids. To cope with the fallout of the international fiscal crisis, Hong Kong has advocated since 2009 the development of six bleak industries in which Hong Kong enjoys clear advantages.It is good to know that CEPA, in both adds VIII and VII, has incorporated measures gear to assisting Hong Kong service suppliers to gain enhanced access to the mainland market increasingly However, the liberalization rate of the Supplement VIII still seems to be not enough and thus it is not so possible to achieve Lis indication mentioned above. For typesetters case On tilling, supplement releases any Mainland-incorporated banking cosmos set up by a Hong Kong bank to ensnarl in the sale and dissemination of correlative funds.Yet, it is only for the Mainland-Hong Kong-incorporated banks and they are allowed to sell and get by the mutual funds only On individually subscribe stores, the number of persons employed in the operation is only relaxed from no more than eight persons to 10 persons and the business area is only relaxed from not exceptional 300 lustyly meters to 500 square meters On insurance, the Supplement allows Hong Kong insurance brokerage firm companies to set up wholly- possess insurance federal agency companies in Guangdong commonwealth on a pilot basis, however, the applicator must satisfy 4 criteria, such asthe appli squeeze outt should have been operating insurance brokerage businesses in Hong Kong for everyplace 10 eld.As the over-all liberalization is relatively limited, so the impact of the Supplement VIII will be low to Hong Kong. Supplement IX to CEPA (boosts access to Mainland market for Hong Kong service industries) Supplement IX to CEPA provides for a total of 43 run liberalization and trade and investment facilitation measures, including 37 liberalization measures in 22 service sectors, strengthens co-operation in areas of finance, trade and investment facilitation, and shape up promotes the mutual recognition of professional qualifications in the dickens designates. Compared with the preceding 8 arrangements, the major features and differences of Supplement IX are opener and wider in the different aspects of cooperation, especially in serve sector.Not only having a more intense collaboration in some aspects like business go, financial service and tourism run that are mentioned in those previous arrangements, but also getting a green light for HKSAR to operate benefit-driving complaisant go like residential commission operate for the elderly and disables. Without doubt, Supplement IX contributes benefits to both China and HKSAR economies. To comment on its imp act comprehensively, we will mainly center on the policies in the service sector. To lead off with, CEPA Supplement IX gives benefits to HKSAR, such as suspensoring HKSAR to develop advantages of its work sector onward expanding its serve sector to another(prenominal) proveniences.According to the arrangement, it states that central government would like to explode all the barriers, such as the terminal point of professionals number, identitys verification as well as the area to movement the operate for the individual workings unit from Hong Kong. Therefore it can give chance to HKSAR to purify its service qualities by enlarging the size of it of its human capital and operation any(prenominal) they want to build up HKSAR tell on name via the plat figure of Guangdong towards the whole mainland market. On the other hand, Guangdong can also sorb the experience such as the department of labor and human capital way of ontogenesis operate sector with file name extensi on to HKSARs model taking place there with a larger developing scale so as to improve the industry structure (tertiary industry) and the level of operate in Guangdong.Besides, CEPA Supplement IX further liberalized 22 service sectors, including 1 new sector statement function, ranging from professional work to cordial services. Reducing barriers for the entries to the mainlands market, it can help HKSAR to develop and promote with more opportunities and also enhance the exchange of theme in between HKSAR and China. Taking an example regarding the education services, China permits HKSAR to operate professional training institutions with a choice in between a single proprietorship, spliff venture or cooperation with China. This loosen restrictions can lead to both win-win situation of them as it can help the accumulation of topical anaesthetic professionals in mainland and narrowed the differences of professionals certification in between two regions.All in all, we can see t hat CEPA does help to reinforce the cooperation between Hong Kong and Mainland China with the progressively loosing policies. And therefore, the impact of CEPA will be sharper and sharper in the future. Yet, in the menstruation stage, there are still umpteen terminus ad quems and barriers and thus we deem that the process goes a bit too slow regarding the hankering of Li Keqiang that the trade in services between the Chinese mainland and Hong Kong should be basically free by the end of the twelfth Five-year plan in 2015. Appendix1 CEPA Supplement VIII (cited) Sectors or sub-sectors 7. monetary services B. Banking and other financial services (excluding insurance and securities) a. word meaning of deposits and other repayable funds from the publicb.Lending of all types, including consumer credit, mortgage credit, factoring and financing of mercantile transactionsc. Financial leasingd. All payment and silver transmission services, including credit, charge and debit cards, t ravellers cheques and bankers drafts (including meaning and merchandise settlement)e. Guarantees and commitmentsf. Trading for own fib or for account of customers conflicting exchange Specific commitments To allow any Mainland-incorporated banking institution established by a Hong Kong bank to engage in the sale and distribution of mutual funds. Appendix2 CEPA Supplement VIII (cited) Sectors or sub-sectors answer sectors (sectors not set out in GNS/W/120) Individually owned stores Specific commitments 1.To allow Hong Kong persistent residents with Chinese citizenship to set up, in accordance with the pertinent Mainland laws, regulations and administrative regulations, individually owned stores in all provinces, self-reliant regions and municipalities directly under the Central authorities in the Mainland without being subject to the approval procedures applicable to foreign investments, to provide the quest services (excluding franchising operation)(1) The following ite ms of Packaging Services under the Leasing and commercialized Service Industry the provision of services of commodities classification, sub-packing and encase, freshness preservation, labelling, mark-stamping etcetera for shopping malls, supermarkets or other customers the provision of goods assorting, sub-packing and packaging services specifically for chain stores or supermarkets the services of delivery companies (centres) which provide mainly goods assorting, sub-packing and packaging services the provision of sub-packing and packaging as well as re-packaging services for command products gift wrapping services. 2) The following items of function Services under the Leasing and Commercial Service Industry the design and production services of signs and bronze plaques the design and production services of trophies, plaques, medals and silk banners. (3) Craft activities which are mainly for the conception of leisure and entertainment (pottery, sewing, painting etc. ) under In door Entertainments. 2. To relax the restrictions on the number of persons engaged in the operation and the business area of individually owned stores set up by Hong Kong permanent residents with Chinese citizenship in all provinces, autonomous regions and municipalities directly under the Central Government in the Mainland(1) No more than 10 persons should be engaged in the operation of the individually owned stores. 2) The business area for retailing services food and deglutition services hair dressing, beauty give-and-take and health care services, bathing services and prepare services of home galvanising appliances and other goods for daily uses under residents services and other services import and export of goods and technologies photography and photographic processing services washing, cleaning and dyeing services repair and maintenance of motor vehicles and motorcycles and storage and reposition should not exceed 500 square metres. Appendix3 CEPA Supplement VIII (cited ) Sectors or sub-sectors 7. Financial services A. All insurance and insurance-related services a. Life, accident and health insurance services (CPC8121)b. Non-life insurance services (CPC8129)c. Reinsurance and retrocession (CPC81299)d. Services concomitant to insurance (including broking and agency services) (CPC8140) Specific commitments To allow Hong Kong insurance brokerage companies to set up wholly-owned insurance agency companies in Guangdong state of matter (including Shenzhen) on a pilot basis. The place of operation should be in Guangdong Province (including Shenzhen), and the pplicant must fulfill the following criteria (1) The applicator should have been operating insurance brokerage businesses in Hong Kong for over 10 years (2) The applicants average yearly business revenue for the past 3 years beforehand application should not be less(prenominal) than HK$500,000 and the total assets as at the end of the year before application should not be less than HK$500,000 ( 3) Within 3 years before application, there has been no serious fuck up and record of disciplinary action and (4) The applicant should have set up a representative office in the Mainland for over one year. Appendix4 CEPA Supplement IX (cited) Sectors or sub-sectors 8. Health related services and social services C. Social services eudaimonia services delivered through residential institutions to aged(prenominal) persons and the handicapped (CPC93311)Day-care services for the handicapped (CPC93321)Welfare services not delivered through residential institutions (CPC93323)Rehabilitation services for handicapped Specific commitments 1. To allow Hong Kong service suppliers to operate elderly service agencies in the form of wholly-owned profit-making enterprises. 2.To allow Hong Kong service suppliers to operate welfare services agencies for persons with disabilities in the form of wholly-owned profit-making enterprises. Appendix6 CEPA Supplement IX (cited) Sectors or sub-sectors 5. educational activity services A. Primary education services (CPC921)B. Secondary education services (CPC922)D. bountiful education services (CPC924)E. Other education services (CPC929) Specific commitments 1. To allow Hong Kong service suppliers from Hong Kong to set up international schools on a wholly-owned basis in Qianhai and Hengqin. Their bottom students may be expanded to offer children of Chinese nationals residing abroad and of returned talents after analyse abroad who are working in Qianhai and Hengqin. 2.To allow Hong Kong service suppliers to set up business-based training bodies in the Mainland on a wholly-owned, equity joint venture or contractual joint venture basis. 2 . Refer to appendix 1 3 . Refer to appendix 2 4 . Refer to appendix 3 5 . Refer to appendix 4 6 . Compared with the previous arrangements ,including CEPA 8, regarding the treatment to Hong Kong permanent residents have services taking place in Mainland China, there are numerous terminal p oint for their developments scale ranging from limitation of professionals number to the size of their services environment. In CEPA 8, the number upper limitation of professionals and working area are 10 and 50 m3. 7 . Refer to appendix 6