PPRD Regional Cooperation Framework Agreement

The PPRD Cooperation and Development Forum preparatory meeting, held in Guangzhou, Guangdong Province in April, 2004.

The Pan-Pear River Delta (PPRD) region encompasses Fujian, Jiangxi, Hunan, Guangdong, Hainan, Sichuan, Guizhou and Yunnan provinces, Guangxi Zhuang Autonomous Region and Hong Kong and Macao SARs.

Current economic globalization and regional economic cooperation trends give impetus to our common desire to enhance PPRD regional cooperation that will bring boundless opportunities for development during the first two decades of this century. PPRD regional cooperation is of practical and strategic importance to the development and prosperity of Hong Kong and Macao, and it will allow wider opening of the inland provinces and autonomous region, more rapid construction of a well-off Chinese society, and increase regional competitive force.

To enhance implementation of cooperation measures, this framework agreement has been formulated after unanimity has been reached through consultation of governments of various localities.

I. Cooperation Aims

Within this cooperation the eight relevant interior provinces and one autonomous regions will abide by the laws and regulations of the Chinese Constitution and the basic laws of Hong Kong SAR and Macao. Cooperation with Hong Kong and Macao will be carried out within the framework of the Closer Economic Partnership Arrangement (CEPA). In line with the requirements of the Chinese national economy and its social development plan, PPRD regional cooperation will adhere to the principle of coordinated and sustainable development whereby areas complement one another's advantages in cooperative projects. Regional cooperation will seek to develop more fields, improve cooperation standards and win greater benefits for all concerned in the interests of better development space and brighter prospects for the PPDR area.

II. Cooperation Principles

1. Voluntary Participation: PPRD regional cooperation participation is voluntary. Its ultimate objective is development. Within the cooperation framework, all participants enjoy equal status and rights. Governments of Hong Kong, Macao and other relevant regions have the right to participate in all or part of the cooperation projects covered by this agreement according to their local legislation and policies.

2. Market-Orientation: PPRD regional cooperation will be market-oriented and promoted by the government. The market mechanism will play a resource distribution role within regional economic development. Enterprises have the right to administrate their businesses and investments according to law. The government is mainly responsible for creating a good development environment and guiding the development direction.

3. Open and Fair: PPRD regional cooperation will adhere to an open and fair policy. Regional exclusivity and discrimination are forbidden. Regional blockades will be eliminated in order to promote an open market and unfettered communication in the interests of common development.

4. Complementation of Advantages: Within the regional cooperation process, regions will play active and innovative roles, complementing one other in the fields of economic resources, industrial construction, science, culture and education development, and training and exchange of human resources.  

5. Benefiting All Sides: Relevant regions should actively improve the cooperation environment, implement cooperation measures, explore more cooperation fields and improve cooperation efficiency to push forward a coordinated and sustainable regional development pattern that brings common benefits.

III. Cooperation Requirements

1. Create an open and fair market environment to promote rational flow and optimized composition of production factors.

2. Enhance coordination of infrastructure facility construction and help solve any major problems arising in the development process.

3. Mobilize and organize relevant social organizations to promote famous brands within PPRD regional development. Increase the overall influence and competitiveness of the region.

4. Promote sustainable development in the region.

IV. Spheres of Cooperation:

1.  Infrastructure Facilities

(1) Energy Resources: Actively promote long-term, stable cooperative partnerships in the PPRD energy resources field.

Implement the national energy development strategy of transmitting electricity from west to the east.

Accelerate development of energy construction projects, and encourage inter-provincial cooperation in production and marketing of coal, natural gas and other energy resources.

(2) Transportation: Construct a large comprehensive transportation network to meet the requirements of PPRD development according to the state plan and with the support of related government organizations.

-- Highways: Advance construction planning of inter-provincial expressways, provincial and national highways.

Consider connection of Hong Kong and Macao highway networks to inland highways. Accelerate construction of inter-provincial, cross-border and sea channels.

Build a complete regional expressway transportation network.

-- Railways: Accelerate construction of the Yunnan International Railway, Southeast Coastal Railway and other inter-provincial railway projects as per the state development plan. Accelerate construction of the Guangzhou-Shenzhen high-speed railway, the Pearl River Delta Inter-City Track and their connections with Hong Kong and Macao.

-- Aviation: Enhance cooperation between local airlines and airports. Increase air routes within the regions with emphasis on express airfreight.

-- Navigation: Research and formulate a regional navigation development plan.

Promote development of river and sea navigation in the area and their connections to other transportation systems.

Speed up planning, argumentation and construction of the Hong Kong - Zhuhai - Macao Bridge.

(3) Pipelines: Actively advance construction of oil and gas pipelines in the region in line with state planning.

2. Industry and Investment

All sides promise to create and enhance a fair, open and congenial investment environment, and to set up a transparent, user-friendly and standardized investment stimulation system. Support technological, production and investment cooperation between enterprises in the region in their complementation of common advantages, thereby improving regional industrial standards and developing a rational regional industrial structure.

3. Trade and Commerce

All sides promise to enforce credibility construction and eliminate barriers restricting commodity circulation in the region.

Build an efficient, standardized market order.

Encourage regional trade cooperation and development activities, work together to promote the CEPA with Hong Kong and Macao.

Introduce standardized industrial and agricultural product quality control and certification in the PPRD region according to CEPA,  with Hong Kong and Macao.

Expedite formulation of standardized cooperation between local government and enterprises in order to achieve common recognition of appraisals by legal examination units.

4. Tourism

Research and formulate a regional tourism development strategy.

Establish a regional tourism information database; construct a regional tourism sales network system; set up a regional tourism E-business service platform; plan and promote tour itineraries that highlight regional beauty spots and tourist attractions.

5. Agriculture

All sides agree to establish a stable sales and purchase network for grain and other agricultural products.

Build an integrated relationship system of leading agricultural enterprises in the region.

Reinforce agricultural science development, promote cooperation in agricultural production, processing and sales, and promote the establishment of a foodstuffs quality control system.

6. Human Resources

All sides agree to expedite human resource cooperation by developing a system of exchanging labor force information.

Promote a rational, orderly and standardized labor flow; protect legal rights of laborers and regulate routine management.

Set up and improve vocational training and education and initiate a system of graded skills and qualifications.

7. Science, Education and Culture

Strengthen cooperation in utilization of education and science resources among institutions of higher learning and science academies.

Enhance cultural and human resource exchanges.

Stimulate scientific information sharing.

Establish a system of regional science and technology innovation.

Industrialize high technology results, and gradually establish a cooperative regional science project mechanism and technological industrialization platform with the aim of advancing regional industrial cooperation strategic alliance.

8. Informatization Construction

All sides shall support construction of a regional information exchange system.

Formulate E-commerce rules and regulations in accordance with national and international practices.

Establish a regional information exchange mechanism to enhance research into and application of information technology and share resources.

9, Environmental Protection

All sides agree to establish a regional environmental protection system to enhance cooperation in protection of water, the ecology and air.

Formulate a regional environmental protection plan, enforce ecological construction in the Pearl River area, especially its upper and middle reaches, protect natural resources in the area, and improve the overall environment quality of the region and its capacity for sustainable development.

10. Sanitation and Epidemic Prevention

All sides agree to establish an epidemic prevention mechanism whereby there is timely reporting on epidemics. Coordinate organizational work of epidemic prevention and control and epidemic prevention and treatment research.

V. Cooperation Mechanism

To guarantee effective regional cooperation and explore more cooperation channels, all sides agree to set up the following cooperation coordination mechanisms

1. Set up annual joint conferences attended by provincial governors, chairman of autonomous region, and chief executive of SARs to decide important regional cooperation issues.

2. Set up a government secretary-general coordination system of members from eight inland provinces, one autonomous region and Hong Kong and Macao to coordinate regional cooperation affairs, organize related departments to draw up cooperation and development plans, and hand in working suggestions and reports to the annual PPRE regional leader joint conference.

Set up administrative offices in relevant regions to be take charge of day-to-day work. The administrative offices in the eight provinces and one autonomous region are to be run by the local development and reform departments. Hong Kong and Macao may appoint their own organizations.   

3. Establish a government department communication and connection system. All involved regions shall instruct related departments to enhance communication, suggest working measures and formulate plans for cooperation projects, and implement this framework agreement.

VI. Forum Arrangement

The Pan-Pearl River Delta (PPRD) Regional Cooperation and Development Forum is an important platform for stimulating regional cooperation. In combination with the regional leaders' joint conference, the forum will be held, in principle, annually in turn. The scale and structure of each forum will be proposed by its respective sponsors, and decided by the secretary-general coordination meeting. The forum shall also be responsible for organizing the annual PPRD Economic and Trade Fair and business tendering and negotiating activities between the nine provinces and autonomous regions in Hong Kong and Macao. The PPRD Economic and Trade Talk will, in principle, be held annually. The arrangement will be proposed by the sponsor and confirmed at the secretary-general coordination meeting.