In order to support Hong Kong and Macao to better integrate into the overall situation of national development, the Ministry of Commerce is promoting the establishment of a single free trade zone among the Mainland, Hong Kong and Macao, which provides an opportunity to promote Hong Kong-Shenzhen cooperation at a higher level. The history of Shenzhen's development is the history of cooperation between Shenzhen and Hong Kong, which is a microcosm of the history of China's reform and opening up. Recently, major favorable policies and initiatives for Hong Kong-Shenzhen cooperation have been launched frequently, from the Development Plan of Shenzhen Park of Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone in the Loop issued by the State Council to the 2023 Policy Address of the Chief Executive of Hong Kong, and the Northern Metro Area Action Plan issued by the SAR Government, which have put forward new requirements for Hong Kong-Shenzhen cooperation in the construction of a higher level of a new open economic system.
The key to understanding a single FTA, as opposed to bilateral, multilateral or plurilateral FTAs, lies in the concept of "within a sovereign state + multiple tariff zones". A single FTA means that, relying on the framework of "one country, two systems, three tariff zones, three currencies and three sets of legal systems", and conforming to the deep adjustment of the international economic and trade order and the development trend of the new round of high-standard economic and trade rules, a single FTA within the sovereignty of a Chinese country, with reference to the practice of international FTAs between countries, through the signing of economic and trade cooperation agreements of international law significance, the Mainland will be able to realize its economic and trade cooperation with the Mainland. It is a new type of FTA constructed by the Mainland, Hong Kong and Macao through the signing of economic and trade cooperation agreements with international law significance and the integration and upgrading of the Closer Economic Partnership Arrangement (CEPA) between the Mainland, Hong Kong and Macao. This is a major institutional innovation for the implementation of "one country, two systems" and an important contribution to the civilization of the world's FTZ system.
Here, there are a few points that need to be clarified: First, the single FTA is a member of the FTA (Free Trade Area) family, formed by the signing of agreements between different tariff zones; second, the single FTA is different from the options under the contract between sovereign states such as CPTPP, DEPA, etc., but is built by the signing of agreements between three different tariff zones within a sovereign state, which is a new type of FTA; Thirdly, the single FTZ is different from China's current 22 Pilot FTZs (special economic functional zones with onshore and unilateral nature set up within China, the main body of construction and the scope of the construction area do not involve other tariff zones), and the Pilot FTZs are Free Trade Zones (FTZs), rather than Free Trade Agreements formed through the signing of Free Trade Agreements. The fourth is that a single FTZ is the FTZ with the highest level of openness and the best integration of openness and security due to the fact that it is constructed within one country, and the relevant key and difficult issues can be tried out first and the risks can be managed and controlled.
There are very good conditions and foundations for Hong Kong-Shenzhen cooperation to build a "single FTZ pioneer zone". First, Shenzhen and Hong Kong commodities and factors flow efficient and active, in trade, investment, science and technology, capital, talent and other aspects of economic and trade cooperation, such as Shenzhen and Hong Kong trade value from 1997, 70.17 billion yuan climbed to 2022, 650.88 billion yuan, the scale of growth of more than 8 times. Secondly, the platform "two-way run to", close sewing twin-city border zone, promote the two places to create a convenient flow of factors, industrial depth of synergy and rules of in-depth docking, such as "Hong Kong's northern metropolitan area action program" planning to build "dual-city, three circles and four regions," that is, the Shenzhen-Hong Kong Twin Cities, to build the Shenzhen Bay quality development circle, Hong Kong and Shenzhen close interaction circle and Dapeng Bay / Indian Chau Tong ecological recreation and tourism circle, from west to east planning and construction of high-end professional services and logistics hub, innovation and technology zones, the port of the business and industrial zone and the blue and green recreation and tourism ecological circle of the four regions, respectively, to strengthen the docking with the Qianhai, Loop, the port of the economic zone early start area, Sha Tau Kok. Thirdly, Shenzhen and Hong Kong are the first to explore the system-oriented opening up and cooperation, and have moved from the opening up of factors and commodities to the opening up of the system.
For the cooperation between Shenzhen and Hong Kong to create a "single FTZ pioneer zone", high level to promote the system of openness and cooperation, can start from the following three aspects:
First, explore early and pilot implementation and replication on a wider scale. Our country's progressive reform and opening up the road, opening up the scope of the "platform - city - regional - national" logical line. At present, Hong Kong-Shenzhen cooperation also focuses on Qianhai, Loop, Sha Tau Kok and other platforms, under the framework of a single FTZ, the creation of an advanced zone of Hong Kong-Shenzhen cooperation will shape and unleash the new potential of synergistic development of the "Special Economic Zone + Special Administrative Region", and innovate the "platform stress test + city" rapid coverage of the whole region. "A new model of rapid switching and linkage with full-area coverage will be created. Relying on the rich scenarios in Shenzhen and Hong Kong, we will break through the limitations of the platform's small area and few scenarios, strengthen the linkage of "platform + city + bay area", and expand the scope of the pilot program.
Second, explore the most comprehensive opening-up system in a wider range of areas. The single FTZ system should emphasize more on top-level design and initiatives of high standard, systematic and integrated. In terms of the content of the system, it covers a wider range of areas, emphasizing "barriers within the border" and "cross-border interconnectivity", including high-level liberalization of trade in goods, and focusing on liberalization in the area of trade in services; in terms of the system, it will be more comprehensive in terms of international rules, domestic laws and regulations, management system, and operation system. In terms of the institutional system, it will be reconstructed at various levels, including international rules, domestic laws and regulations, management system, operation mechanism and policy system. Therefore, we should actively seek support from the national legislature and relevant departments, and strive for greater autonomy in opening up and reform.
Thirdly, we should explore the implementation of high-standard economic and trade rules at a deeper level. In line with the development trend of international economic and trade rules, the single FTZ will play an important role in imitating and innovating, utilizing the advantage of latecomers, pioneering and experimenting with high-quality and high-standard institutional rules, introducing, transforming and integrating them. At the same time, relying on the scenario of Hong Kong-Shenzhen cooperation, independent innovation of "high-quality system results", to promote the international economic and trade rules or the system of FTZ system to the good change. Therefore, Hong Kong-Shenzhen cooperation in the construction of a single FTZ pioneer zone should be standardized with international high-standard economic and trade rules, and should be opened when it can be opened, and released when it can be released, so as to form a single FTZ economic and trade rule system that is more standardized and standardized, interconnected, open and transparent.
