Hong Kong Chief Secretary for Administration Henry Tang and the Vice-Governor of Guangdong Province Wan Qingliang lead many productive discussions during the 12th Working Meeting of the Hong Kong/Guangdong Cooperation Joint Conference held in Guangzhou on January 21. The pair, leading their respective delegations, discussed how to implement the initiatives relevant to the cooperation among Hong Kong, Guangdong and Macao in the “Framework for Development and Reform Planning for Pearl River Delta Region” (Framework), which was announced by the National Development and Reform Commission earlier this month.
Both sides reached consensus and exchanged views on several major cooperation initiatives.
The Chief Secretary for Administration indicated that while the global economy is facing a challenging and critical time, launching of the Framework is important as it provides a clear policy to develop Hong Kong, Guangdong and Macao into the most energetic economic region. There is a need to implement the Framework quickly.
The Framework supports the expansion of cooperation among Hong Kong, Guangdong and Macao under the guidance of the relevant central authorities. The Government attaches great importance to the implementation of the Framework and, under the principle of “One Country, Two Systems,” will discuss with Guangdong the follow-up actions to determine the best long-term direction for the greater Pearl River Delta region.
Both sides agreed to focus on the cooperation of four priority areas, including financial industry, service industry, infrastructural facilities and town planning, as well as innovation and technology with an aim to implementing the Framework effectively and speedily.
The two governments have agreed to set up the “Hong Kong/Guangdong Coordinating Committee on Implementation of the Framework for Pearl River Delta Development and Reform Planning,” as the major engine for implementing the Framework. The coordinating committee will include senior representatives from relevant policy bureaus and departments, and is responsible for coordinating the relevant expert groups and departments, setting out the strategy and targets for implementation of the Framework, as well as reviewing work progress regularly.
The Hong Kong and Guangdong governments will, jointly with the Macao Special Administrative Region Government, discuss the establishment of a regional collaboration mechanism and the cooperation issues, with a view to enabling timely exchanges of views and to working on joint planning for the three places.
At the same time, both Hong Kong and Guangdong have agreed to make use of the opportunities presented by the Framework to enhance the cooperation between Hong Kong and Guangdong at different levels; to meet with each other more frequently; to encourage the interaction and collaboration between the Government and different sectors in Hong Kong with the nine municipalities in the Pearl River Delta region; and to enhance community participation in research on regional cooperation and planning.
The two sides agreed to set up a new Expert Group responsible for promoting financial cooperation under the framework of the Hong Kong/Guangdong Cooperation Joint Conference. The Expert Group will select and put forward some cooperation initiatives with a view to breaking through the obstacles in the existing system and providing mechanisms for free flow of capital resources to support the financial development of the Pearl River Delta region.
Both sides will collaborate in full implementation of the Closer Economic Partnership Arrangement (CEPA) and liberalization measures begun in Guangdong on a pilot basis. The Guangdong government has established a dedicated office to coordinate relevant work. The promulgation of mainland China rules and regulations as well as implementation details for the Guangdong pilot measures are in progress. For example, the measure allowing Hong Kong travel enterprises to organize group tours to Hong Kong for qualified non-Guangdong residents in Shenzhen was implemented on December 15, 2008. To enable the trade to enjoy the benefits of the Guangdong pilot measures early, the Guangdong side will expedite work on the amendment of implementing rules and regulations, will share implementation details and provide facilitation measures as early as possible.
The central government has launched specific policies, including increasing the export tax rebate rates four times, suspending the policy on actual payment of standing book deposit for processing trade enterprises and making adjustments to the Catalogue of Restricted Products and the Catalogue of Published Products for Processing Trade, etc. Guangdong also has rolled out a series of policies, including the reduction in administrative fees, the reduction of the burden of social insurance for enterprises with hardship, support to enterprises’ restructuring and upgrading, assistance to enterprises in exploring domestic sales in the Mainland, and clarification of the calculation of overtime payments and effective retrospective period in respect to the labor system. The Hong Kong Special Administrative Region (HKSAR) Government has conveyed the wish of early implementation of these measures for the benefits of Hong Kong-invested enterprises to Guangdong.
Both sides agreed that the formation of a closely integrated transport system and a highly efficient traffic network and related facilities among Hong Kong, Macao and the Pearl River Delta will bolster economic ties among the townships. Additionally, the free flow of key economic elements, lower transaction costs, as well as enhancement of the quality of service and the level of management will render the Greater Pearl River Delta region the most convenient, efficient and safest for passenger traffic and logistics in the Asia Pacific region. At the meeting, both sides reported the progress of various major cross-boundary infrastructure projects and will work to expedite these projects, including the Hong Kong-Zhuhai-Macao Bridge, Guangzhou-Shenzhen-Hong Kong Express Rail Link, Hong Kong-Shenzhen Airport Rail Link and the boundary control point at Liantang/Heung Yuen Wai.
On supporting software and coordinating regional transport planning, both sides will consolidate the regional traffic and transport network according to the people-based principle to ensure the free flow of people and goods. Both sides also will work closely with the authorities in the Pearl River Delta region to ensure the clear demarcation of the work on the development of ports and airports and their reasonable distribution so as to complement each other's strength, thus maintaining Hong Kong’s status as a major port and civil aviation hub in Asia.
The Framework also mentions that “joint planning and implementation of the key action plan for the Bay Area covering the Pearl River mouth will be supported.” The Bay Area is the window for the whole region. The HKSAR Government will discuss with the Guangdong and Macao governments the future development strategy of the Bay Area as soon as possible, and take forward cross-boundary regional planning cooperation on the basis of the findings of “The Planning Study on the Coordinated Development of the Greater Pearl River Delta Townships,” which will be soon available.
The HKSAR Government will enhance the “Guangdong/Hong Kong Technology Cooperation Funding Scheme,” with a view to including more R&D projects that will benefit the technology development of both Guangdong and Hong Kong. At the same time, we plan to organize focus visits to various Pearl River Delta cities for representatives of industries and R&D institutions, with a view to exploring further collaboration opportunities with Guangdong in specific technology areas such as information and communication technology (including RFID), advanced materials, biotechnology and renewable energy. The HKSAR Government also will strengthen the sharing of information and R&D resources with Guangdong and will continue with the development of the Hong Kong-Shenzhen Innovation Circle.
In the long run, the HKSAR Government will encourage and strengthen the systemic collaboration between the academic, industrial and research sectors of the two places. By utilizing Hong Kong's advantages in the protection of intellectual property and the global network, Hong Kong could be developed into a technology service center for the industries of the Pearl River Delta.
The Framework underlines the need to develop hi-tech industries and enhance the innovative capacity of the region. Drawing on the respective competitive advantages of Hong Kong and Guangdong, both sides would collaborate closely to transform the Pearl River Delta region into a hi-tech, low-pollution and low-carbon "green and quality living area." As an international financial center, Hong Kong can play a facilitating role in introducing advanced technologies, transferring management expertise and systems and facilitating advanced environmental research. By leveraging the production base in the Greater Pearl River Delta region, environmental protection will be integrated with the economic development and industrial restructuring of the two places. Possible areas of collaboration include facilitating the development of a regional, large scale hi-tech circular economy that provides for green business opportunities and promotes the adoption of cleaner production and energy efficiency technologies in industries. This hi-tech circular economy also would strengthen cooperation between enterprises in Hong Kong and Guangdong in supporting efficient utilization of resources and development of environmental protection industries, thereby upgrading the quality of enterprises in the region, and developing cleaner and renewable energy while enhancing energy structure. Both sides will seek to tackle regional environmental problems in a holistic manner and will support the regional economic development needs.
The HKSAR Government will continue discussions with the Guangdong authorities to draw up the post-2010 arrangements for improving regional air quality, with a view to establishing forward-looking and practicable emission reduction targets with due recognition of the differences between the two places and the expectations of the community. Both sides also agree to strive to include the notion of transforming the Pearl River Delta region into a green and quality living area in the national 12th Five-year Plan.
To tie-in with the Framework in supporting the establishment of higher education institutions in the Pearl River Delta by prestigious higher education institutions in Hong Kong and Macao and renowned overseas universities, the HKSAR Government also will work closely with the Shenzhen authorities to establish universities and research institutions of international and advanced standard in the Lok Ma Chau Loop. This will help foster even more talents for the long-term development of the Greater Pearl River Delta.
Both sides will continue promoting cooperation in other items, including cooperation in major cross-boundary infrastructural projects and boundary control points, facilitation of people and cargo flow, food safety, water supply, informatization, social welfare, culture, sports, education, flow of talents, joint promotion of the cooperation in the Pan-Pearl River Delta region, emergency management and strategic research.
The Chief Secretary for Administration considered the discussion and exchanges at the Working Meeting useful and fruitful. Looking ahead, Hong Kong and Guangdong will begin discussion on various cooperation areas and their implementation in accordance with the Framework. If Hong Kong and Guangdong can re-affirm the division of work and the implementation under the Framework, greater and wider synergies can be generated resulting in win-win situations.
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