Beijing fails to win hearts and minds of Hongkongers with Cepa trade pact
After 10 years, the political benefits of Cepa - a pact to foster economic ties between Hong Kong and the mainland - appear to have faded away
From the very beginning, the Closer Economic Partnership Arrangement was more than simply helping out Hong Kong's battered economy in the wake of severe acute respiratory syndrome (Sars) and the Asian financial crisis.
On the day he signed the pact on June 29, 2003, former premier Wen Jiabao made it clear that as well as being intended to boost the economy, "The agreement also indicates the central government's concern and support for Hong Kong."
The need to do so became clearer two days later when half a million Hongkongers took to the streets to oppose planned national security legislation under Article 23 of the Basic Law and to vent their frustration at then chief executive Tung Chee-hwa.
The cross-border free-trade pact offers Hong Kong companies preferential access to mainland markets. There are zero tariffs on goods imported from Hong Kong, although the city's small manufacturing base limits the effectiveness of that measure. Nine supplementary deals signed since 2004 have further liberalised trade in goods and services.
The Hong Kong government has hailed the economic impact of the deal. Earnings for Hong Kong companies from mainland-related business facilitated by Cepa reached HK$61.6 billion between 2004 and 2009, according to government figures. The individual traveller scheme, which allows mainlanders from key cities to visit Hong Kong without joining tour groups, is credited with boosting the retail, catering and property sectors, although the influx of visitors has proved controversial.