Since The Signing Of CEPA Study The Impact Of The Mainland And Hong Kong's Economy

On29June2003, the mainland China and Hong Kong cosigned CloserEconomic Partnership Arrangement (“CEPA” for a short) and continued to consignnine supplemental agreements every year, which constantly improving the economicrelationship between the mainland China and Hong Kong. The paper takes the CEPAand its nine supplemental agreements as the selected topic to deeply understand itsoverall contents, including the economic and social effects of the manufactureindustry, financial cooperation, investment cooperation, tourism and academicexchange between mainland China and Hong Kong, and put forward related policysuggestions. In this writing, both quantitative and qualitative methods will be used toevaluate CEPA’s economic and social effects between mainland China and HongKong. The policy suggestions presented as below:Firstly, CEPA’s zero-tariff policy improves the mainland China’s development ofmanufacture and employment, while making Hong Kong’s products more priceadvantage. In the future, mainland China and Hong Kong should pay more attentionto industry upgrading to develop high-quality commodity trade.Secondly, CEPA’s financial cooperation between mainland China and HongKong provides non-financial institutions multiple services to choose and increase themarket share of two financial institutions. In the future, mainland China and HongKong should promote financial cooperation through organization structuring, openingup and qualification authentication.Thirdly, CEPA’s investment cooperation improves mainland China and HongKong’s economic development and employment. In the future, mainland China andHong Kong should lay emphasis on balance on investment location both inGuangdong and other provinces in mainland China.Fourthly, CEPA promotes the development of tourism and employment in HongKong.Lastly, CEPA’s academic exchange promotes the flow of talent between mainlandChina and Hong Kong. In the future, mainland China and Hong Kong should emphasize on training and collection of talent to form more high quality humanresources.