China’s government on Monday announced it would gift Hong Kong two giant pandas and introduce a five-year travel permit allowing permanent residents with foreign passports to enter mainland China to mark the 27th anniversary of the territory’s handover to China.

The criteria for tax exemption are Mainland tourists The cost of travel to Hong Kong was also raised on Monday from 5,000 yuan (US$688) to 15,000 yuan per trip, but the response from travelers was lukewarm.

Some say the limit is less attractive than the 100,000 yuan per year in southern China’s Hainan province, a popular destination for mainland Chinese tourists.

Chief Executive Officer John Lee called on various departments to ensure visitors have a good experience during their stay. Photo: Xiaomei Chen

Asked if he would fight for the cap to be raised, Mayor Lee said it had been achieved “after great efforts by various ministries and authorities in the central government”, adding that it was important the city made good use of the new system.

“It is important for us, the people of Hong Kong, including of course the government, to make the most of the various measures and ensure that Hong Kong can realise its full potential,” he added.

Mr Lee called on various sectors to ensure visitors have a good experience during their stay in Hong Kong.

“I call on everyone to think of innovative ways to take advantage of the new measures proposed for Hong Kong,” the chief executive said.

Lee also said the Hong Kong government had reached an agreement to further expand the Closer Economic Partnership Arrangement (CEPA) on trade in services, to include areas where Hong Kong has advantages such as law, finance and construction.

He said the series of measures taken by Beijing would create a multiplying effect and benefit Hong Kong as a whole.

Li said the government would continue to consider all measures to boost the city’s overall economic development and business environment, and would stay in touch with Beijing on these areas.

“If there is a need and we feel this policy is appropriate, we will definitely discuss it with the central government,” he said.

Lee’s call for Hong Kong to take advantage of Beijing’s measures echoed comments made by Cheng Yanxiong, director of the central government’s Liaison Office in Hong Kong, at a lunch with lawmakers on Friday.

Zheng called for Shanghai to evolve from its role as a “super connector” to one of a “super money maker,” the first time he has used the term since taking office in 2023.

He urged Hong Kong to make the most of the benefits offered by the “two systems” approach.

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July 1st marks the 27th anniversary of Hong Kong’s handover to China.

July 1st marks the 27th anniversary of Hong Kong’s handover to China.

Rep. Michael Tien Puk-song, who attended the luncheon, told The Post that such language implied that the Chinese government wants Hong Kong to take a more proactive role in addressing its economic difficulties itself, rather than asking for more favors.

Lau Siu-kai, a consultant at the China Association for Hong Kong and Macau Studies think tank, said Lee’s comments did not reflect the government being shy or reluctant to go too far in pushing for measures that would benefit Hong Kong.

“As for measures that benefit Hong Kong, the central government will allow them to be taken by Hong Kong whether the Hong Kong government requests them or not, because the central government recognises that the Hong Kong economy is in a transitional period and will face many difficulties and challenges in the short to medium term,” he said.

Lau said he thought the mayor was simply calling on local businesses to first make the most of the opportunities Beijing is already offering. He said society was only partially taking advantage of some measures while ignoring or rejecting others, citing the nearby Qianhai Economic Zone as an example.

He said there wasn’t much hiring in Qianhai, an emerging district of Shenzhen that has special policies for Hong Kong companies.

Lau said there were other reasons why the central government would not allow some measures for Hong Kong, and it also had to take into account what other provinces thought and the potential impact on national interests.

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