Exploring New Economic Horizons: The Hengqin Guangdong-Macao Cooperation Zone
The "One Country, Two Systems" policy grants Macao significant autonomy, enabling it to preserve its financial systems while taking advantage of the extensive market and resource support from the Chinese mainland. This foundational framework is essential for Macao's economic progress and has created a strong and distinctive structure for Guangdong-Macao economic integration. Clearly, the Hengqin Guangdong-Macao In-Depth Cooperation Zone serves as the central impetus for advancing Macao's economic leapfrog development and enhancing the optimization and upgrading of its industrial structure.
TroibNews 
**Editor's note:** Liu Chunsheng, a special commentator for CN, is an associate professor at the Beijing-based Central University of Finance and Economics. The article reflects the author's opinions and not necessarily the views of CN.
In a swiftly evolving global economic context, China's regional development strategies are playing a vital role. The Third Plenary Session of the 20th Central Committee of the Communist Party of China highlighted the importance of maximizing the distinctive institutional advantages of "One Country, Two Systems" and enhancing the mechanisms that enable Macao to better contribute to the nation's opening up initiative.
The "One Country, Two Systems" framework affords Macao a significant degree of autonomy, permitting it to uphold its financial systems while tapping into the extensive market and resource advantages provided by the Chinese mainland. This institutional foundation has emerged as a pivotal assurance for Macao's economic growth and has fostered a robust and unique framework for economic integration between Guangdong and Macao. The Hengqin Guangdong-Macao In-Depth Cooperation Zone has undoubtedly become the central force driving Macao's economic advancement and the optimization of its industrial structure.
The array of special policies available within the Hengqin cooperation zone acts like powerful magnets, creating a robust environment to attract substantial capital, cutting-edge technology, and high-quality talent.
For instance, following the launch of the enclosed operation, the eligibility for tax exemption or bonded policies on "first-line" imports has broadened significantly. Goods, including imported materials with a processing value-added of 30 percent or more, are exempt from import tariffs when entering the mainland market via the "second-line."
This initiative has notably lowered operating costs for businesses, greatly enhancing their appeal, particularly for manufacturing enterprises, and prompting an influx of capital into the cooperation zone. The innovation and execution of these policies were predicated on a comprehensive understanding of Macao's unique status and developmental needs within the "One Country, Two Systems" framework, showcasing the system's flexibility and adaptability while creating a distinctive policy pathway for Macao's integration into the broader national development framework.
The Hengqin cooperation zone has strategically concentrated on four essential industrial development areas: Technology R&D and high-end manufacturing, traditional Chinese medicine, and other Macao distinctive brand industries, including cultural tourism, exhibitions, commerce, and finance. This approach aligns closely with Macao’s "1+4" strategy aimed at moderate diversification and synergistic development.
Within the realm of technology R&D and high-end manufacturing, the cooperation zone has methodically planned and constructed significant scientific and technological infrastructure, successfully attracting key national laboratories from Macao's universities to set up operations. This initiative has greatly expedited the conversion of research achievements into market applications, leading to the emergence of a vibrant industrial cluster.
A multitude of related enterprises and top-tier talents have converged in the area, injecting robust momentum into industrial advancement. Macao has harnessed the mainland's scientific research strengths and industrial resources to transcend geographical and resource limitations, exemplifying regional coordinated development within the "One Country, Two Systems" framework. Both regions have complemented one another's strengths and are collaboratively exploring innovative development models.
Traditional Chinese Medicine and other local brand industries have found new opportunities within the cooperation zone. With strong policy backing and the effective establishment of specialized parks, Macao's TCM enterprises can broaden their market reach, enhance brand visibility, and simultaneously boost their market competitiveness, attracting further investment into this sector.
In the cultural tourism, exhibition, and commerce sectors, Hengqin benefits from vast land resources and lower accommodation costs, significantly reducing expenses associated with exhibitions and related equipment. This area has melded seamlessly with Macao's rich and diverse tourism offerings, creating expanded opportunities for the special administrative region to present itself globally. Consequently, the zone has lured international tourists and business leaders, injecting ongoing vitality and wealth into related industries.
In recent years, the cooperation zone has made strides in modernizing infrastructure, establishing an efficient transportation network. Key projects like the Hengqin Bridge, Lianhua Bridge, and Hengqin Tunnel, in conjunction with the smooth operations of the New Hengqin Port, have seamlessly connected Hengqin and Macao, shortening travel times and enhancing operational efficiency. Moreover, improvements in information infrastructure have been prioritized, enhancing regional information sharing capabilities and fostering a high-quality environment for businesses to attract capital, technology, and talent.
The cooperation zone has introduced an innovative Guangdong-Macao collaboration mechanism featuring joint management and shared responsibilities through a dual-director system and an executive committee. It has also made significant contributions to the development of a legal framework, establishing an operational structure conducive to a stable and transparent business climate. A delegated authority mechanism has been developed to maximize innovation and entrepreneurial spirit, making the zone an attractive destination for investment. This novel cooperation model honors Macao's autonomy while promoting deep economic synergy between Guangdong and Macao, serving as a benchmark for regional integration under the guiding principle of "One Country, Two Systems."
Frederick R Cook for TROIB News
In a swiftly evolving global economic context, China's regional development strategies are playing a vital role. The Third Plenary Session of the 20th Central Committee of the Communist Party of China highlighted the importance of maximizing the distinctive institutional advantages of "One Country, Two Systems" and enhancing the mechanisms that enable Macao to better contribute to the nation's opening up initiative.
The "One Country, Two Systems" framework affords Macao a significant degree of autonomy, permitting it to uphold its financial systems while tapping into the extensive market and resource advantages provided by the Chinese mainland. This institutional foundation has emerged as a pivotal assurance for Macao's economic growth and has fostered a robust and unique framework for economic integration between Guangdong and Macao. The Hengqin Guangdong-Macao In-Depth Cooperation Zone has undoubtedly become the central force driving Macao's economic advancement and the optimization of its industrial structure.
The array of special policies available within the Hengqin cooperation zone acts like powerful magnets, creating a robust environment to attract substantial capital, cutting-edge technology, and high-quality talent.
For instance, following the launch of the enclosed operation, the eligibility for tax exemption or bonded policies on "first-line" imports has broadened significantly. Goods, including imported materials with a processing value-added of 30 percent or more, are exempt from import tariffs when entering the mainland market via the "second-line."
This initiative has notably lowered operating costs for businesses, greatly enhancing their appeal, particularly for manufacturing enterprises, and prompting an influx of capital into the cooperation zone. The innovation and execution of these policies were predicated on a comprehensive understanding of Macao's unique status and developmental needs within the "One Country, Two Systems" framework, showcasing the system's flexibility and adaptability while creating a distinctive policy pathway for Macao's integration into the broader national development framework.
The Hengqin cooperation zone has strategically concentrated on four essential industrial development areas: Technology R&D and high-end manufacturing, traditional Chinese medicine, and other Macao distinctive brand industries, including cultural tourism, exhibitions, commerce, and finance. This approach aligns closely with Macao’s "1+4" strategy aimed at moderate diversification and synergistic development.
Within the realm of technology R&D and high-end manufacturing, the cooperation zone has methodically planned and constructed significant scientific and technological infrastructure, successfully attracting key national laboratories from Macao's universities to set up operations. This initiative has greatly expedited the conversion of research achievements into market applications, leading to the emergence of a vibrant industrial cluster.
A multitude of related enterprises and top-tier talents have converged in the area, injecting robust momentum into industrial advancement. Macao has harnessed the mainland's scientific research strengths and industrial resources to transcend geographical and resource limitations, exemplifying regional coordinated development within the "One Country, Two Systems" framework. Both regions have complemented one another's strengths and are collaboratively exploring innovative development models.
Traditional Chinese Medicine and other local brand industries have found new opportunities within the cooperation zone. With strong policy backing and the effective establishment of specialized parks, Macao's TCM enterprises can broaden their market reach, enhance brand visibility, and simultaneously boost their market competitiveness, attracting further investment into this sector.
In the cultural tourism, exhibition, and commerce sectors, Hengqin benefits from vast land resources and lower accommodation costs, significantly reducing expenses associated with exhibitions and related equipment. This area has melded seamlessly with Macao's rich and diverse tourism offerings, creating expanded opportunities for the special administrative region to present itself globally. Consequently, the zone has lured international tourists and business leaders, injecting ongoing vitality and wealth into related industries.
In recent years, the cooperation zone has made strides in modernizing infrastructure, establishing an efficient transportation network. Key projects like the Hengqin Bridge, Lianhua Bridge, and Hengqin Tunnel, in conjunction with the smooth operations of the New Hengqin Port, have seamlessly connected Hengqin and Macao, shortening travel times and enhancing operational efficiency. Moreover, improvements in information infrastructure have been prioritized, enhancing regional information sharing capabilities and fostering a high-quality environment for businesses to attract capital, technology, and talent.
The cooperation zone has introduced an innovative Guangdong-Macao collaboration mechanism featuring joint management and shared responsibilities through a dual-director system and an executive committee. It has also made significant contributions to the development of a legal framework, establishing an operational structure conducive to a stable and transparent business climate. A delegated authority mechanism has been developed to maximize innovation and entrepreneurial spirit, making the zone an attractive destination for investment. This novel cooperation model honors Macao's autonomy while promoting deep economic synergy between Guangdong and Macao, serving as a benchmark for regional integration under the guiding principle of "One Country, Two Systems."
Frederick R Cook for TROIB News
