Beijing will maintain sweeteners in Cepa pact with Hong Kong, say analysts
Analysts say Beijing has no choice but to extend favourable measures under the Cepa pact
While questions are raised about the diminishing effectiveness of the Closer Economic Partnership Arrangement, analysts do not expect the economic goodies from the mainland to dry up any time soon.
After all, Beijing has few alternatives when it comes to supporting Hong Kong and the city's embattled government.
"For years, the central government has spared no effort to win the hearts of the majority and, hence, maintain social stability in Hong Kong," said Professor Zheng Tianxiang , from Sun Yat-sen University's Centre for Studies of Hong Kong, Macau and the Pearl River Delta.
"When Beijing has no card to play in generating consensus [among Hongkongers] over sensitive but controversial political issues such as universal suffrage, it has virtually no alternative other than extend existing favourable measures through Cepa."
Li Shunde , vice-chairman of the WTO Law Research Society of China, said the mainland had room to open its services industry further to Hong Kong. However, he said there was no rush to open up the market quickly.
"The mainland's development of its services has been imbalanced and remains limited in many poor regions. Therefore, it needs to be prudent in opening its market."
Perceptions on the mainland that access to the service sector has been a one-way street could also hinder the expansion of Cepa.