The Trend Of Joint Development Between Hong Kong And Mainland China Under The Structure Of CEPA

Since China has changed polices on opening markets, Hong Kong is taking advantages of Mainland China essential economic elements to boost its economy. This results in Hong Kong becoming a focal for Financial Services, Logistic and Trading center in Asia Pacific. In Southern China, some provinces like Guangdong is making use of Hong Kong's funds, technological skills and unique intermediary position to develop their own industries. This accumulated assets and increased financial holdings have reinforced the foundation of joint development of Hong Kong and Guangdong.Following on further opening markets in China and the entry as a member of WTO in 2001 as well as the recession in Asia Pacific region, Hong Kong has encountered difficulties in economic growth. This makes us realize the restructure of Hong Kong economy. It also becomes a trend that Hong Kong is joining China to maintain its economic growth.In June of 2003, China and Hong Kong had signed an agreement on the (Arrangement of Commercial and Economy Partnership Agreement Between Mainland and Hong Kong - "CEPA" ). This would give rise a more structural policy on joint development of Hong Kong and Mainland.In this thesis, the plan, model and development trend of Hong Kong and China under CEPA will be further discussed. The possible factors and constraints of the process of joint development will also be looked at. Finally, some strategic policies of joint development will also be proposed.