What CEPA Means for Your China Business

September 2003 China Briefing

This issue covers the new Hong Kong - Mainland China "Closer Economic Partnership Agreement" (CEPA) and what it means for Hong Kong companies, a review of purchasing Chinese state owned enterprises, an overview of China's fruit and vegetable industry and a piece on Hefei city. Chris Devonshire-Ellis, Senior Partner, Dezan Shira & Associates, writes about "Hong Kong & The Mainland CEPA Agreement - Qualifying For Preferential Treatment” detailing the qualifying issues for Hong Kong companies to take advantage of this fast track entry level into China for previously restricted industries. A table of selected sectoral commitments is also provided, including China advertising, China distribution & commissions for agents services, trading rights, China franchising, China logistics and logistics consulting, and the opening up of the China banking sector to Hong Kong banks. Liang Ming Cheng of Dezan Shira & Associates contributes a piece on “Purchasing Chinese State Owned Enterprises”, including the mechanism for purchase, valuation procedures, existing Chinese workers rights, investment incentives and a quick overview of various Chinese State Owned Enterprises for sale. Sacha Cody of Dezan Shira & Associates also contributes an article on "Chinas Fruit & Vegetable Industry", with statistics concerning imports and exports, trade channels, production, distribution, and consumption in China.