In the News: Beijing Unveils Greater Bay Area Plan; and US Holds off More China Tariffs

February 26, 2019 | BY

Anna Zhang, The Asian Lawyer

China lays out a blueprint for a 11-city metropolitan area, while Washington and Beijing make progress in months-long trade negotiations.

China releases Greater Bay Area plan details

Last week, the Chinese government released details of a blueprint that aimed to build an integrated economic and financial area among nine Pearl River Delta cities and the special administrative regions (SARs) of Hong Kong and Macau.

The region is dubbed the Greater Bay Area as Beijing seeks to build a world-class metropolitan area that rivals those of San Francisco and Tokyo. Hong Kong, which is named by the central government as one of the four key cities alongside Shenzhen, Guangzhou and Macau, will be the center of the plan that promises to “consolidate and enhance Hong Kong's status as an international finance, transportation and trade center, as well as an international aviation hub.”

The plan laid out details of closer cooperation and connection between the mainland and Hong Kong and Macau in financial, educational, infrastructural systems while upholding the “One Country, Two Systems” doctrine for the two SARs.

More cooperation is already underway between the mainland and Hong Kong, especially in the services industry. Financial institutions, accounting firms and law firms already have increased interaction as Hong Kong positions itself as a hub for transactions and dispute resolution related to the Belt and Road Initiative.

More from CLP:

U.S. delays tariffs on Chinese exports as trade talks progress

President Donald Trump announced on Sunday he is delaying a previous plan to raise tariffs to 25 percent on $200 billion worth of Chinese goods from March 1. Trump said that important progress has been made during the latest round of trade negotiations between China and the U.S. in Washington, D.C.

Both sides will hammer out final details of an agreement during another meeting between Trump and president Xi Jinping in Florida in late March. But according to CNBC's reporting, as part of the negotiation, China has agreed to buy up to $1.2 trillion in goods from the U.S.

Representatives from both countries did not disclose details of the progress but acknowledged that major obstacles remained. The U.S. side, led by trade representative and well-known China hawk Robert Lighthizer, is keen to push for structural economic changes in China including enforceable rules against intellectual property and trade secret theft, and further relaxation in market entry. On its part, China recently released a set of proposals and regulations that addressed IP protection and market entry barriers. A streamlined nationwide negative list aimed to show Beijing's commitment to relaxing market access; while a draft Foreign Investment Law indicated equal treatment for foreign and Chinese entities and pledged protection for IP rights.

More from CLP:

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]