The Supplement IV to the Closer Economic Partnership Arrangement
(CEPA5), implemented as of this year, will see the Chinese mainland
lower the threshold for investment from the Macao Special
Administrative Region (SAR) in 17 industries, which is expected to
boost the SAR's trade and business development, especially the
convention and exhibition sector.
Under CEPA5, the Chinese mainland will further open its markets
to Macao's investors in such fields as convention and exhibition,
tourism, human resources, insurance, and privately-owned business,
while another 11 industries will also be added to the list of
opening, according to a report by the Macao Daily News, a
major local Chinese-language newspaper.
The mainland authorities will eliminate restrictions on
investment and shareholding, which means Macao's investors will
enjoy lower registered capital and qualification, and wider ranges
for investment and business operations, the report said.
CEPA5 was signed by the Chinese mainland and the two SARs of
Hong Kong and Macao on June 29, 2007. By far, the implementation of
CEPA, has granted Hong Kong and Macao investors market access in 38
industries in the Chinese mainland.
As for the convention and exhibition industry, which Macao hopes
to develop in a bid to diversify its gaming-led economy, more
favored treatment from the mainland authorities will expedite its
development process.
CEPA5 will allow Macao operators to hold exhibitions in China's
Guangdong Province and Shanghai through cross-border payment, and
the operators are also granted the permission to provide exhibition
services outside the mainland to registered companies from
Guangdong and Shanghai.
"CEPA5 will benefit Macao's convention and exhibition industry
as companies from Shanghai and Guangdong are allowed to hold
exhibitions in the SAR," said Ho Hoi Ming, president of the Macao
Convention and Exhibition Association, adding that the latest Macao
International Trade and Investment Fair has seen many participating
companies from the neighboring Guangdong.
Statistics from the Chinese Ministry of Commerce showed that
thanks to CEPA, the trade volume between Macao and the Chinese
mainland in the first 11 months of 2007 amounted to 2.66 billion US
dollars, up 20.7 percent year-on-year, while Macao saw its export
to the mainland soar 9.9 percent to 260 million US dollars.
Therefore, Ho said, if the mainland authorities can further open
its markets in other coastal provinces like Fujian, Jiangsu,
Zhejiang and even China's capital Beijing, Macao will be able to
build on its role as a business and trade platform between the
mainland and the world markets, especially those of the
Portuguese-speaking nations.
In addition to the convention and exhibition industry, many
Macao businessmen also see new opportunities in other fields as the
mainland market further opens.
"The implementation of CEPA will provide Macao businessmen with
better access to the mainland market and the convenience of
expanding their operations," said Li Kuo Hui, a local businessman
and president of the International Logistics and Forwarding
Association of Macao. He registered a logistics company in the
mainland last year.
But he pointed out that despite the rich resources in the
mainland market, Macao companies still have to face fierce
competition, and their operations must be adapted to the laws and
regulations in the mainland which are different from the SAR.
By far, the mainland authorities have ratified 11,480 investment
projects from Macao, with a total investment value of 7.49 billion
US dollars, according to official statistics.
(Xinhua News Agency January 2, 2008)
