Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (“Qianhai Shenzhen-Hong Kong Cooperation Zone”) is the only platform supported by the government to encourage the cooperation between Shenzhen and Hong Kong in modern service industry. It is a pivotal zone for the “One Belt and One Road” strategy introduced by the central government and a key sector in Guangdong Pilot Free Trade Zone. Moreover, it enjoys preferential policy support and strategic advantages in reform and opening-up as it takes on vital role in carrying out three major national development plans including Shenzhen – Hong Kong Cooperation, One Belt and One Road strategy and Pilot Free Trade Zones.
I. General Information
The total planned area of China (Guangdong) Pilot Free Trade Zone, Qianhai & Shekou Area of Shenzhen are 28.2 square kilometres, among which, 15 square kilometres (including 3.71 square kilometres of Qianhai Bay Bonded Port Area) will be occupied by Qianhai district and 13.2 square kilometres will be occupied by Shekou district.
Shekou is the birthplace for implementation of China’s reform and opening-up policies, a testing base for institutional innovation and a pioneer region for industrial transformation and upgrading. Qianhai and Shekou are among the most economically open regions in China with prominent advantages through synergistic development.
II. Positioning of the Development
Capitalizing on the advantages and extensive experience in marketization, legalization and internationalization, Qianhai and Shekou districts will utilize their prime locations in carrying out the 21st Century Maritime Silk Road strategy to further integrate the resources of Shenzhen and Hong Kong and gather other high-end resources from abroad.
High priority will placed on the development of financial services, modern logistics, information service, technology service, professional services, port service, shipping service and other strategic emerging services so as to facilitate the economic integration and development of Shenzhen and Hong Kong. In addition, commitment will also be made to develop Qianhai and Shekou districts into the centre of Asia-Pacific region in terms of manufacture-related service industry as well as an important world trade base and international hub.
III. Unique Strengths
(1) Geographical advantages
Qianhai and Shekou districts in Pilot Free Trade Zone of Shenzhen, Guangdong province are located at the western part of Shenzhen, eastern coast of the Pearl River and adjacent to Hong Kong and Macao. Qianhai and Shekou districts sit at the crossroad of the main development axis of the Pearl River Delta and coastal functional expansion belt.
Moreover, they neighbour two international airports (i.e. Hong Kong Airport and Shenzhen Airport) within a distance of 30 km and two world-class container hub ports (i.e. Hong Kong Port and Shenzhen Port). Relying on the strong industrial base and the threefold effects of Shenzhen-Hong Kong development circle, airports and ports service circle as well as the harbour service circle, Qianhai and Shekou districts own the best geographical advantages for developing modern service industry.
In 2014, the cargo throughput of Shenzhen Airport amounted to 963,800 tons, ranking fourth in the country, and has opened 153 domestic routes and 24 international routes. The Hong Kong Airport had a cargo throughput of 4,380,000 tons which was the world’s largest cargo airport with 155 international direct destinations. In 2014, the total container throughput in Hong Kong Port was 22,287,000 TEUs, ranking fourth in the world and the total container throughput of Shenzhen Port was 24,037,000 TEUs, ranking third in the world, among which, 12,364,200 TEUs were completed at the ports of mid-west areas.
(2) Preferential policies and rules
1. The State Council approved 22 “First Exercise and First Try” policies in Qianhai district, covering numerous fields including finance, taxation, legislation, human resources, education, health care and telecommunications;
2. Enterprises which fulfill the requirements of the Catalogue of Enterprise for Income Tax Preferential Program in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone will be entitled to enjoy 15% reduction in the payment rate of corporate income tax;
3. Individuals who satisfy the requirements of the Interim Measures on Individual Income Tax Subsidies for Overseas High-end Talents in Short Supply in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone will be granted financial subsidies by the Shenzhen government on their paid individual income tax which exceed 15% of the their taxable income. Individual income tax on such subsidies for the successful applicants will be waived;
4. Manufacturing-related enterprises which fulfil the relevant conditions of the Notice of the Ministry of Finance and the Ministry of Commerce Concerning Issuing the Official Reply on Carrying out the Comprehensive Pilot Program on Modern Service Industries in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone are allowed to apply for financial support for the comprehensive pilot program;
5. Qianhai is granted the same authority as other cities under separate state planning in approving and recording foreign investment. As such, the establishment of and investment by the foreign-invested enterprises in Qianhai will enjoy the one-stop handling procedures;
6. Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone is the only socialist demonstration zone in China governed by law;
7. Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone is the cooperation platform and demonstration zone for excellent individuals of Guangdong Province, Hong Kong and Macao as well as a reform and pilot zone for management of national talents.
IV. Development Strategies
1. Establishing an internationally-linked financial demonstration zone.
Innovation will made in financial industry with cross-border RMB business as the core business through integration of the financial resources in Qianhai and Shekou, so as to steadily promote the construction of the capital market in Shenzhen and Hong Kong, and facilitate the synchronized development of both the industry and finance of the pilot free trade zone.
2. Developing Qianhai and Shekou districts into the centre of Asia-Pacific region in terms of manufacture-related service industry as well as an important world trade base and international hub.
Superior resources and high-end forces will be gathered to support the new trade model such as high level industry and cross-border electronic commerce. Efforts will also be made to strengthen the supply chain management, information services, technology services, cultural and creative industries, international business and other professional services.
3. Building an international hub.
By capitalizing the mechanism and arrangement of the pilot free trade zone, global supply chain and the port chain for 21st Century Maritime Silk Road Strategy will be shaped with Qianhai and Shekou being the centre. The strengths in sea, land, airport and ports of western Shenzhen will be integrated to support the construction of “Smart Port” with an aim to boost the cluster development of the marine economy in the pilot free trade zone, which relates to shipping and logistics, shipping finance, shipping, insurance, maritime arbitration, ship management, seaman service, marine equipment as well as cruise and yacht related services.
4. Fostering a new platform for cooperation between Shenzhen and Hong Kong
Adhering to the general principles of relying on Hong Kong, serving Mainland China and expanding globally, Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone will proactively implement the CEPA arrangement to promote free trade in Guangdong Province, Hong Kong and Macao. Initiatives will be taken to learn experience from Hong Kong and establish international business rules. Giving full play to its industrial and policy advantages, Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone will keep exploring new modes and channels for cooperation between Hong Kong and Mainland China in a bid to jointly establish a well-developed modern service industry.
5. Establishing a law-governed socialist demonstration zone with Chinese characteristics.
Market participants will be encouraged to conduct innovation and standardize the administrative powers based on the existing legislation. International arbitration institutions will be optimized through judicial reform. Moreover, legal consciousness and knowledge will be fostered and a complete legal system including legislation, law enforcement, judiciary and legal supervision will be formed, with an aim to build a city with highest degree of integrity, fairness, efficiency, professionalism, good reputation and internationalization.
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