Mainland/Hong Kong Closer Economic Partnership Arrangement

Signed: June 29 2003
Effective: as of date of signature

Main contents: The Arrangement aims to progressively reduce or eliminate tariffs and non-tariff barriers on trade in goods, progressively achieve liberalization of trade in services and promote trade and investment facilitation. Relevant measures include:
- the Mainland will not apply tariff rate quotas against goods of Hong Kong origin (Article 6);
- Hong Kong companies are permitted to establish wholly-owned advertising firms, construction project consultancy firms, companies providing commission agents' services or wholesale trade services, trading companies, retail commercial enterprises, franchises, enterprises providing logistics services, and hotels (Annex 4);
- Hong Kong companies are permitted to wholly acquire construction enterprises in the Mainland (Annex 4);
- qualified Hong Kong accountants who have practised in the Mainland (including partners) are treated on a par with Chinese CPAs for the purpose of the requirement for annual working hours in the Mainland;
- Hong Kong legal practitioners are permitted to work for Mainland law firms;
- Hong Kong permanent residents with Chinese citizenship are permitted to sit the legal qualifying examination in the Mainland and acquire Mainland legal profession qualification (Annex 4);
- the asset requirement for both Hong Kong banks and Hong Kong finance companies wishing to enter the Mainland market is reduced to US$6 million (Annex 4); and
- the maximum limit of capital participation in a Mainland insurance company is raised from 10% to 15% for a Hong Kong insurance company (Annex 4).