Delta free-trade zone with Hong Kong and Macau could be years away
Idea said to still be in its initial stages, with pressure on Guangdong to make the case for it
A proposal by Guangdong authorities to create a free-trade zone covering Hong Kong, Macau and part of the Pearl River Delta may take years to happen, sources familiar with the matter say.
The idea, first floated by Guangdong party boss Hu Chunhua in September, generated a buzz in Hong Kong and over the border. Some see it as an answer to the Shanghai free-trade zone set up in September.
The proposed Guangdong free-trade zone would cover Hong Kong, Macau, Qianhai in Shenzhen, Hengqin in Zhuhai and Nansha in Guangzhou. It would be much bigger than the 28.78 square kilometre Shanghai free-trade zone. Sources said the proposal would offer benefits such as free convertibility of yuan, company registration reform, import and export relaxations, as well as freer internet connections.
Some media reports have speculated that the proposal would receive Beijing's blessing as early as the end of this month - right after a key Communist Party plenary meeting that will start on Saturday. But sources familiar with the development told the South China Morning Post that the idea was still in an initial stage and creation of the zone would not happen any time soon.
The Guangdong FTZ … is going to be a very difficult sell and very hard to pull off
"No one has a clear picture but our understanding is that it might take two or three years to get the project approved," said a government source.