WE HAVE BEEN getting a powerful dose of Cepa talk again in recent days and, as usual, it heralds another signing ceremony for the closer economic partnership arrangement, this time with Vice-Minister of Commerce An Min in town to sign six annexes to the agreement.
Three of them cover rules of origin for Hong Kong products that are to be accorded zero-tariff privileges on export to the mainland and the others deal with services and investment. They raise some immediate questions.
For one, we are told that these Hong Kong products would require a 'substantive transformation in the production process' or proof that at least 30 per cent of the value added came from manufacturing here.
Could we have a list, please, of Hong Kong-made products for which there is a market on the mainland and which meet these criteria? Could we have an estimate of how much they would be worth in annual trade? Could we have an assurance that these things are visible without the aid of a microscope?
And, if the intent is to attract foreign investment into Hong Kong for the production of these goods, could we have a statement on how many foreign companies have so far shown any real dollars and cents interest in setting up such facilities? I have my binoculars out but so far nothing in view.
As to the new services provisions in these annexes, we have been told that these will allow telecommunications companies in Hong Kong to gain access to the mainland, although they will not be allowed controlling stakes.
It seems to me that I can already buy shares in China telecoms. What real concession will these new provisions give us? Aside from reasons of political show, how many Hong Kong telecoms companies are really attracted to sticking big dollops of good money into their mainland counterparts without control of these investments?
