Trade
One of the objectives of the Belt and Road Initiative is ‘unimpeded trade’, that is to remove barriers to investment and trade1, eliminate both tariffs and non-tariff barriers, collaborate with member states on improving business environment and establish of free-trade zones along the economic corridor2. Through this, countries would have a new trans-national trading network for better collaboration in spite of the economic downturn and rising protectionism.
Facilitating Trade
China has signed 14 free trade agreements and negotiated with other countries for establishment of free trade zones to achieve reciprocal economic relationships via trading.
Through trade facilitation, import/export and customs clearance would be streamlined with the enhanced information exchanges, mutual recognition of supervision measures and law enforcement coordination. In compliance with the WTO Agreement on Trade Facilitation, efforts should be taken to enhance transparency and efficiency in trading activities and foster multilateral cooperation in entry-exit inspection and quarantine system, certification and accreditation, standardisation of measurement and statistics. Member states should have closer cooperation on trading and investment by expanding markets as well as trading and investment areas, streamlining investment procedures, promoting cooperation in emerging industries, and optimising industrial and supply chains3.
In recent years, China’s economy has been transformed from ‘the world’s factory’ into a knowledge-based and innovation-based one, while the manufacturing industries have moved from low-cost processing industries to high-end and high value-added industries4. In tandem of the growth, China has been engaging in trade negotiations. So far, China has signed 14 free trade agreements and negotiated with other countries for establishment of free trade zones to achieve reciprocal economic relationships via trading5.
Highlighted Achievements:
- China and New Zealand implemented the agreement on mutual recognition of the Authorised Economic Operator (AEO) on 1 July 20176
- China and Poland signed the Protocol of Phytosanitary Requirement for Export of Apples from Poland to China7
- China has signed agreements on energy cooperation with more than 20 countries, and has established 46 overseas economic and trade cooperation zones with 17 countries8
Under the new Silk Road framework, China strives to promote a win-win approach to build a network conducive to economic cooperation.
Hong Kong as an International Legal Hub
Hong Kong enjoys judicial independence, has a well-established Common Law system recognised worldwide
With a well-established legal system, Hong Kong can strengthen the business partnerships and reinforce economic growth along the Belt and Road trade routes. As the trans-national trade route covers different types of legal systems with their own commercial law system9, including Common Law system, Civil Law system, Islamic Law system and Socialist legal system, a recognised legal platform is needed for dispute settlement in the Belt and Road region.
Hong Kong enjoys juridical independence, has a well-established common law system recognised worldwide, coupled with the world-renowned Hong Kong International Arbitration Centre and a pool of international lawyers from different jurisdictions practising in Hong Kong10, it is well placed to be an international legal hub to provide both legal services and alternative dispute resolution services for the Member States of the Belt and Road Initiative11.
With the principles of openness and inclusiveness, the Belt and Road Initiative not only welcomes all countries to take part, but also encourages China’s state enterprises to play a greater role in trading and investment activities with other Member States along the Belt and Road trade routes to build a mutually beneficial network that fosters reciprocal partnerships and forges closer business connections with each other.
[1]HKTDC. "The Belt and Road Initiative." HKTDC.
[2]Belt and Road Portal. "推動共建絲綢之路經濟帶和21世紀海上絲綢之路的願景與行動" The State Information Center of China.
[3]Ibid.
[4]Lee, Simon-Hoey, and Yuan, Xiao-hang. 從世界工廠到世界工程師, 34. Hong Kong: Joint Publishing (Hong Kong) Company Limited, 2016.
[5]Lee, Simon-Hoey, and Yuan, Xiao-hang. 從世界工廠到世界工程師, 34-37. Hong Kong: Joint Publishing (Hong Kong) Company Limited, 2016.
[6]Belt and Road Portal. "7月1日中新兩國海關將正式實施AEO互認 貨物通關時間將明顯壓縮" The State Information Center of China.
[7]Belt and Road Portal. "「一帶一路」助推波蘭農副產品走進中國市場" The State Information Center of China.
[8]Tai Kung Pao. "「一帶一路」建設取得卓著成就" Tai Kung Pao.
[9]Jasper TSANG. "曾鈺成：法律中心" Hong Kong Policy Research Institute.
[10]HKSAR Government. HKSAR Government.「一帶一路」香港：重要節點.
[11]HKTDC. "Hong Kong as an International Legal Hub – Opportunities from the 'Belt and Road' Initiative." HKTDC.
