The Joint Development Of Trade In Services Between Mainland And Hong Kong Under The Framework Of CEPA

Nowadays, the development of the service industry has already become a sign to measure the economic strength of a country. With trade in services has become more and more important in the world trade, the proportion of values of services to GDP has become more and more important to measure the structure of a country. Mainland's services industry has worse foundation, and the proportion is lower than the average level of the developed country. However, Hong Kong's service industry is the motivation of its economy, which has already reached international level and the proportion is 90% .Mainland and Hong Kong has cooperated in economy many years, and after Hong Kong became a Special Administrative Region of the China, the cooperation between two sides have became more frequently. And the government enacted a series of policies to accelerate the relation of the two side's economy, the most influence policy of which is CEPA (Mainland/Hong Kong Closer Economic Partnership Arrangement), which is the Central and Hong Kong governments agreed on 29 June of 2003. And then another four liberalization measures had been agreed by two sides. This article is written to compare the situation of trade in services of Mainland with Hong Kong, and analyses the content and meanings of the agreed CEPA, and under some theories to speculating some ways to cooperate in trade in services of the two sides. But there are some obstacles between the development cooperation of two sides, according the obstacles given some advice.Part one has been expatiated the development situation of the Mainland and Hong Kong. Firstly, this part introduced the characters of the service industry of Hong Kong and evolvement of the development in trade in services. Secondly, this part introduced the situation of service industry and trade in services in Mainland, and there are some obstacles in trade in services. So finally the advantage and disadvantage of two sides are exhibition, which giving a great help to the after research about how to joint develop the trade in services.Part two introduced the background of the agreed CEPA and the significance of the joint of trade in services between Mainland and Hong Kong. CEPA has benefited Hong Kong's economy by boosting trade, creating jobs, attracting investment and spurring tourism, according to a recent survey by the government of the Hong Kong Special Administrative Region. CEPA also benefit the service industry and trade in services of Mainland, improving the professional level of the services and accelerating the development of service industry of Mainland.Part three analyses the ways of joint development of trade in services of Mainland and Hong Kong. In the above part, the situation of the trade in services of the Mainland and Hong Kong already introduced and compared. After Mainland jointed in WTO, Mainland faced the pressure of opening the market of the trade in services, the agreed CEPA bring the opportunity for two sides to further cooperation, especially in the area of trade in services. So the two sides by what way to cooperate better and how to boost both sides'economy and accelerate both sides'service industry are becoming very important. This part by some theories, such as comparative advantage theory, regional economic integration theory and competitive advantage theory, to endue the modes of cooperation which are complement advantage mode, integration cooperation mode and double level cooperation mode.Part four points out some problems of the trade in service between Mainland and Hong Kong and works out some solutions. Though the ties between the Mainland and Hong Kong are intensifying with the assistance of CEPA and both sides are enjoying huge benefits from the trade ties, potential problems are brewing. Because of the different of both sides'economic environment, and legal system, and the level of the economic development, and some problems of the CEPA make the cooperation between two sides have some obstacles, restricting the trade going smoothly between the two sides. So at the end of this part giving some advices and working out some solutions. In conclusion the implementation of CEPA bringing the opportunity of both sides'services industry development, and bringing the advanced professional service ideas and managements from Hong Kong to Mainland, and giving Hong Kong a bigger market in Mainland, accelerating the development and the level of service of services industry of Mainland, redeveloping the economic of Hong Kong, improving the standard of living of residents of Hong Kong, increasing the employment rate of Hong Kong. Though there are some problems in the implementation of CEPA, both two sides'governments are active cooperation with each other, introducing some policies to insure the cooperation going smoothly, especially in the area of trade in service. So the implementation of CEPA is an open and developing platform, allowing Hong Kong to continue to engage the mainland authorities on further liberalisation of trade in services with the mainland, and other areas of cooperation in the future, accelerating the common prosperity of the two sides.