New Qianhai plan ‘further boosts regional economic integration’
SHENZHEN, China, Sept. 28, 2021 /PRNewswire/ — The new development plan for the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in Shenzhen is a powerful thruster of the regional economic integration of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), which will in turn strengthen China’s competitiveness in the global market, Cao Jinli, director of the Taiwan, Hong Kong and Macao Research Institute of the Chinese Academy of International Trade and Economic Cooperation, commented during an interview Sept. 9.
The plan states that by 2035, the Qianhai cooperation zone will boast a world-class business environment and will enhance its coordinated links with Hong Kong and Macao, perfecting industrial synergy, market interconnectedness and innovation support for Hong Kong and Macao.
Cao said that the free and convenient flow of all kinds of production factors is key to regional economic integration.
“The signing of the Closer Economic Partnership Arrangement (CEPA) between the Chinese mainland and Hong Kong has provided significant support for both regions’ economic development, especially for Hong Kong, as all goods originating in Hong Kong and imported into the mainland enjoy a zero tariff treatment.
“The new plan is expected to open up Qianhai further to Hong Kong and provide greater support for Hong Kong’s development. Major breakthroughs may happen in the flow of factors such as personnel, capital, technology and information between Hong Kong, Qianhai and the mainland, which is crucial for total factor improvement,” she said.
According to Cao, Hong Kong’s main impetus for signing CEPA and other free trade agreements was to solve its problem of insufficient economic growth momentum, which was largely caused by low total factor productivity.
Total factor productivity, an important factor in analyzing economic growth sources, refers to the additional production efficiency achieved under the established conditions of various production factors’ levels.
“To a large extent, technology and relevant systems determine the total factor productivity. The Qianhai plan mentioned speeding up the reform and innovation of scientific and technological development systems and mechanisms and the Central authorities have clearly put forward its objective of building the GBA into an international science and innovation center. Shenzhen’s Qianhai has a profound foundation of technology innovation capability and its deepening reform and further opening up will introduce talents and advanced technologies and provide more development space for Hong Kong, so as to realize a win-win situation,” Cao said.
Shenzhen Daily news report:
-Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone