Hong Kong, Australia talks on FTA under way as HK celebrates 20th anniversary of Chinese rule

SYDNEY – Negotiations between Hong Kong and Australia for a formal Free Trade Agreement are under way, the Director of Hong Kong’s Economic and Trade Office, Arthur Au, told guests at a dinner celebrating Hong Kong’s 20th anniversary of 1997, when British rule ended.

Au said the agreement, once in place, could further strengthen economic links and create more opportunities for Australian companies into Asia through Hong Kong.  

He added: Like those doing business on both sides, we look forward to early commencement of negotiations for a comprehensive double taxation agreement between Hong Kong and Australia.”

Hong Kong would also be playing a pivotal role in development of China’s Belt and Road initiative and what is now referred to as the Guangdong-Hong Kong-Macau Bay Area, he said, with an express rail line connecting Hong Kong to the Mainland’s high-speed rail network.

(The Guangdong-Hong Kong-Macau Bay Area (also known as the Greater Bay Area) dates back to 2015 policy paper released by China on its Belt and Road Initiative. 

(The Bay Area includes Hong Kong, Macao, Guangdong and eight other cities – Shenzhen, Zhuhai, Zhoaqing, Huizhou, Donguan, Foshan, Zhonbgshen and Jiangmen - in Guangdong Province.

(It will be the most highly populated bay area worldwide, home to over 67.6 million people, with a total GDP of over 1.3 trillion US dollars in 2016.

(China’s Premier, Li Keqiang, said recently that China’s Central Government will draw up plans for the Bay Area this year, aiming to increase connectivity between the Mainland and Hong Kong, and to boost the regional economy.)

Speaking to guests at the 1997 celebration in Sydney, China’s Ambassador to Australia, Cheng Jingye, described 1997 as “a major step towards the complete reunification of China”.

The people of Hong Kong today, he said, enjoyed greater freedom than they had before 1997 (under British rule).

Cheng pointed to the “four imperatives” in the implementation of Hong Kong’s One Country Gwi Systems arrangement under the Basic Law, as spelled out by China’s leader, Xi Jingping, in a keynote speech in Hong Kong in July.

Xi said Hong Kong must grasp accurately the relationship between "one country" and "two systems"; act in accordance with China’s constitution and the Basic Law; focus on development, and uphold a harmonious and stable environment. (ATI).