Hengqin New Area Expands Room for Macao's Development

New Starting Point for Zhuhai’s Reform

On August 14, 2009, the State Council approved the Overall Development Plan for Hengqin. Hengqin is positioned as a demonstration zone to explore a new cooperation mode between Guangdong, Hong Kong and Macao, under the “one country, two systems” policy – as a pilot zone for deepening reform and opening-up, and innovation in science and technology, as well as a new platform for promoting industrial upgrade in the region west of the Pearl River Estuary. At the end of 2012, President Xi Jinping made an inspection tour of Guangdong Province, where he expressed hope that the construction of Hengqin would help explore a new cooperation mode and innovate systems and mechanisms for deepening Guangdong-Macao cooperation while maintaining long-term prosperity and stability of Macao.

“First-tier Management” is implemented between Hengqin and Macao, while “Second-tier Management” has been set up between Hengqin and the interior. The guidelines also include separating management of people and goods. The differentiated management of customs clearance in Hengqin forms a special zone by the Pearl River Estuary. It operates special policies even more preferential than those in Special Economic Zones, including those relating to customs clearance, tax and land, industry, informatization, and finance.

In July 2011, the State Council issued the Reply of the State Council Concerning Relevant Policies on the Development of Hengqin. It called for Hengqin New Area to become a pilot zone for deepening reform and opening-up and innovations in science and technology, to further maximize the advantages of Hong Kong and Macao as free ports, and to promote innovation in the customs system, science and technology, management systems and development mode, with the aim of enabling Hong Kong and Macao residents to work and live in, and travel to and from Hengqin. Efforts should also be made to raise the level of internationalization of socio-economic development and construct high-level industrialization bases. Hengqin is expected to make breakthroughs in key sectors of reform and opening-up to provide experience for the development of the Pearl River Delta.

In order to create an internationalized and sound legal environment for businesses, Hengqin has succeeded in many bold and “first” attempts: it took the lead nationwide in launching business registration reforms and promulgating the first business registration management regulation, constructing the longest utility tunnel, launching the first multi-currency UnionPay card, and being nominated one of China’s first national ocean ecology demonstration zones and first human resources management reform pilot zones. It meanwhile established the mainland’s first anti-corruption office to initiate a system for comprehensive prevention and punishment of corruption. Hengqin was also the first to promote the property declaration system for officials, and to explore the land management system through coordinated planning of the national economy and social development, along with overall planning for city development and land utilization.

“Since Hengqin New Area was established, it has clearly boosted the development of Zhuhai,” He Zhiyuan said. “My friends in Macao often consult me about doing business in Zhuhai. I usually invite them here to see for themselves. Zhuhai has become a hot destination for Macao people to start companies.”

By the end of 2013, Hengqin had welcomed 38 enterprises that are global 500 companies, 45 of China’s top 500 companies and six of the top 100 Hong Kong listed companies. Zhuhai Chime Long Group has invested in the construction of the largest sea resort in Asia, which opened at the end of 2013. A total of 63 key projects, with a total investment exceeding RMB 240 billion, are under construction.

“As the intersection and transitional belt between the mainland and SARs under the ‘one country, two systems’ policy, Hengqin will play a special role by becoming a driving force to develop Zhuhai. Enjoying a distinctive location and boasting innovative preferential policies, Hengqin connects Hong Kong and Macao with the mainland. It will provide a brand new platform and form a new driving force for industrial restructuring, especially for the development of the service industry on the west banks of the Pearl River Estuary,” Niu Jing concluded.