In recent years, Guangdong, Hong Kong and Macao have been undertaking stricter market-based financing systems and advancing the construction of a national free trade zone. In this regard, Guangdong, Hong Kong and Macao have launched the establishment of the Guangdong-Hong Kong-Macao Greater Bay Area Free Trade Zone (GBFTA), promoting the construction of a high-level trade and investment environment.
The GBFTA was officially launched in October 2018, with the goal of creating a more open, convenient and transparent trading system. Its envisioned to become a vibrant innovation and economic cooperation hub across the Bay Area, building a bridge between the mainland and Hong Kong and Macau to attract more international trade and investment opportunities.
The GBFTA seeks to break down the geographic, institutional, and cultural barriers that have long hindered economic integration in the Greater Bay Area. Numerous measures have been adopted to ensure its successful implementation, including streamlining the process for foreign investors access to the Greater Bay Area market, liberalizing trade rules, simplifying customs and tax procedures, and promoting the development of information technology to better connect the three areas. It also seeks to attract more businesses from around the world to participate in the Greater Bay Area market.
Promoting effective international investment mutually beneficial to the Greater Bay Area is key for the success of the GBFTA. To this end, China has adopted a number of policies and measures to attract foreign investors. These include loosening foreign exchange restrictions, expanding the scope of businesses eligible for foreign direct investment, and increasing the transparency of investment regulations. In addition, the Hong Kong Monetary Authority announced the rollover of funds raised by banks in the Greater Bay Area, which will help provide more funds locally to businesses seeking to expand their operations in the area.
Another key issue in the successful implementation of the GBFTA is the free movement of labor and talent. To this end, a series of measures have been announced to improve the visa, residency and employment processes in the Greater Bay Area. The measures include liberalizing visa and work permit requirements, providing education and training resources, and easing restrictions on the mobility of work in the Greater Bay Area.
The success of the GBFTA depends on making sure the implementation is efficient, inclusive, and beneficial for the different stakeholders. In this regard, stakeholders need to continue to participate in dialogue with the aim of formulating suitable trading and investment policies. Additionally, the government and private sector need to collaborate more in order to help the cross-border flow of capital, knowledge and expertise.
Finally, the successful implementation of the GBFTA also requires sustained and coordinated efforts from all parties. Not only must the three regions continue to collaborate on the development and promotion of trade and investment in the Greater Bay Area, but they must also work together to provide comprehensive and equal treatment to domestic and foreign investors. As the greatest economic opportunity in the Greater Bay Area, the GBFTA has the potential to be a driving force behind the economic success of the region.
