Shenzhen-Hong Kong cooperation zone highlights the complementarities between the two cities: Chair of SME Forum at the EuCham China

“Shenzhen-Hong Kong cooperation zone has proved to be successful so far. It also seems that this area is a main destination for SMEs and start-ups.”

Guilherme Campos, Chair of SME Forum, European Union Chamber of Commerce in China (Photo provided to Newsgd.com)

Guilherme Campos, Chair of SME Forum, European Union Chamber of Commerce (EuCham) in China, comments in a recent interview with Newsgd.com & GDToday. With over eight years of experience in Foreign Investment laws and consultancy in Greater China, Campos is currently residing in Hong Kong and supplying assistance to foreign and local investors, in the legal, tax and IP fields.

Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone highlights the complementarities that exist between Shenzhen and Hong Kong

GDToday: What new opportunities will be brought for the SMEs after the plan for further developing Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone was issued?

Guilherme Campos: This could be good news because, so far, Shenzhen-Hong Kong cooperation zone has proved to be successful. According to statistics, the area was ranked first in the country in 2019 in terms of GDP per square kilometre, at 15.26 billion yuan (USD 2.2 billion).

It also seems that this area is a main destination for SMEs and start-ups, with lots of them coming from Hong Kong. This highlights the complementarities that exist between Shenzhen and Hong Kong.

If the authorities continue to make it easy to invest and maintain a company in this zone, the number of SMEs investing there is likely to increase in the coming years.

The GBA will be successful if it draws upon the merits of Hong Kong and the rest of South China

GDToday: Do you think more EU SMEs will have any strategic layouts or plans newly made following the trend of deepening development of this Zone? How can the GBA be successful in the future?

Guilherme Campos: It is likely that European SMEs will look to take advantage of preferential policies, such as subsidies or tax deductions, where it makes sense.

In general, South China can be characterised as having a high level of innovation, as well as openness to foreign investment. It also has good infrastructure and an increasingly mature consumer market, which shows the growth potential of the region.

We advocated in our previous South China Position Paper that the Greater Bay Area (GBA) will be successful if it draws upon the relative merits of each area or city. Hong Kong has the advantage of having an extremely sophisticated and mature service industry, in particular financial services, and foreign investment has historically been attracted to the city as it offers them an open, transparent and predictable business environment with strong institutions, underpinned by rule of law. This is what foreign investors look for when making long-term commitments to a market. And this should remain the case as the GBA develops.

Policies that allow Hong Kong financial institutions to sell their financial products to the mainland will see Hong Kong and the rest of the whole GBA continue to grow and become even stronger than the sum of its parts.

However, it is extremely important that detailed plans for the GBA are shared with European companies, and particularly the European Chamber, so the EuCham is able to inform its members of any policies that will be of benefit to them, as well as any areas in which they can become increasingly involved.

Author| Rofel

Editor| Wing, Jerry, Keane

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