Access to the PRC Market under CEPA
By Deming Zhao
The Closer Economic Partnership Arrangement was signed on 29 June 2003 between the Central Government of the People’s Republic of China and the Hong Kong Special Administrative Region. The primary goal of CEPA is to enable a free flow of goods and services from Hong Kong to the PRC. The most prominent feature of CEPA is the granting of preferential treatment to Hong Kong companies and “goods of Hong Kong origin”, which is more favorable than what is offered under the PRC’s commitments to the World Trade Organization. It is expected that CEPA will give certain industries in Hong Kong a competitive edge against non-Hong Kong companies, especially by having an early presence in the PRC service market through the establishment of foreign-invested enterprises.